We actually don't owe £258 million in transfer fees

[wolvored]

This has been in the press and is now on transfer tweets. If this is true wtf is going on?
https://www.express.co.uk/sport/foo...ransfer-fees-expert-reveals-incredible-detail

 

[izec]

bullshit, thats whats going on

 

[VP89]

Anywhere else outside of Express?

 

[Anustart89]

We don't.

/thread

 

[0le]

University of Liverpool lecturer Kieran Maguire, though, claims United owe £258m to other clubs for previous transfer deals.

Hmm...I wonder...

 

[Skills]

Transfer fees aren't usually paid up front. Most of the time you pay them over a few years.

 

[Damien]

This has been in the press and is now on transfer tweets. If this is true wtf is going on?
https://www.express.co.uk/sport/foo...ransfer-fees-expert-reveals-incredible-detail

In the transfer tweets thread, most of the replies were saying it wasn't true (or at least not to that extent). From our resident accountant:

It doesn't say anything of the sort

It has reduced from £258M at 30/06/18 to £129M at 30/09/18, of which £43M is due after more than 1 year, so £86M due within one year.

Also: it is the Express. They're the worst for United news.

 

[Sparky Rhiwabon]

Transfer fees aren't usually paid up front. Most of the time you pay them over a few years.

Exactly so it wouldn’t surprise me if this was true.

 

[wolvored]

Anywhere else outside of Express?

As I said was just looking at transfer tweets on here, then googled it and it was in the Express

 

[UnrelatedPsuedo]

Stupid people post here

 

[dove]

I can bet an absolute majority of sports clubs work that way, nothing to see here.

 

[SirAF]

Come on.. wise up lads!

 

[alsabi]

Stick that on the side of a bus

 

[wolvored]

Stupid people post here

Yes you

 

[Kostur]

The more important question is, if we've introduced the anti-acronym filter, how does

wtf

get past it?

 

[wolvored]

The more important question is, if we've introduced the anti-acronym filter, how does

get past it?

IDK

 

[Kostur]

IDK

Mooooooods.

 

[Nate Dogg]

We desperately need to sell Fellaini

 

[UnrelatedPsuedo]

Yes you

Thank you brother x

 

[Dr. Dwayne]

Sack Ole, sell Pog!

Glazers out!

 

[48 hours]

I’m not any sort of expert, but scanning through the Manchester United plc Interim report (unaudited) for the three and nine months ended 31 March 2018

https://ir.manutd.com/financial-information/quarterly-reports/2018.aspx

Transfer fees payable
Under the terms of certain contracts with other football clubs in respect of player transfers, additional amounts would be payable by us if certain specific performance conditions are met. We estimate the fair value of any contingent consideration at the date of acquisition based on the probability of conditions being met and monitor this on an ongoing basis. The maximum additional amount that could be payable as of 31 March 2018 is £60.9 million.

 

[RedDevil@84]

Wow!! An undercover agent in guise of a lecturer at University of Liverpool

 

[AR87]

I'm pretty sure if there's one thing we can trust Woodward with it's handling our finances

 

[Rado_N]

We don't.

/thread

Bingo.

 

[SadlerMUFC]

That's how business' operate. You don't take cash out of your holdings. You build credit and work off it. This is a nothing story...

 

[Moriarty]

Transfer fees aren't usually paid up front. Most of the time you pay them over a few years.

Woodward's Visa card must have a high limit. Wonder if he has a good rate of interest?

 

[Sandikan]

Reminiscent of the days rival fans seemed to think we were a minute or two away from collapse as they'd "Heard" we had a 400-500m debt

 

[iluvoursolskjær]

Quick everybody be like Oh noes!!

 

[Rado_N]

Thread needs changing to "We actually don't owe £258 million in transfer fees".

@Damien

 

[Damien]

Thread needs changing to "We actually don't owe £258 million in transfer fees".

@Damien

Done

 

[RedCurry]

A bit sensationalized thread title but we have £266m in trade payables. Why are people disputing that?

 

[Henrik Larsson]

Seen articles before where this Kieran Maguire guy was quoted, he seems to be the guy media call when they want some financial insight on football clubs. So the current headlines are probably just some tabloid rehash of some of his quotes.

For example this was from October:

https://www.forbes.com/sites/mikeme...s-the-battle-behind-the-numbers/#4d958f9d4cb2

"Making more money, essentially, is one thing, but when your rivals have near-limitless pits of cash from which to compete, it doesn't matter. That said, United have allowed other clubs to get a march on them by paying for players over time rather than up front.

'The Manchester United approach appears to be one geared towards smoothing cash flow as much as anything else,' added Kieran Maguire. 'The club has significant cash reserves, so it is confusing why they prefer spreading payments over a number of years.'

'Manchester City and Chelsea both seem to take the view that they can negotiate a lower price when signing a player by paying all or a substantial element of the fee up front, and so feel they save money this way."

 

[Henrik Larsson]

Here's the actual tweet by the way for anyone interested in the discussion:

Tweet

— Twitter API (@user) date

I don't know how to post the reactions but there's a discussion and the guy goes on to explain himself a bit more.

 

[Ibi Dreams]

If it's true I don't imagine it's a problem, or any different to how other clubs run their transfer business. We can only sign players when the fee (and the terms of payment) are agreed with the selling club. I'd be shocked if we owed money that should have been paid already, and I'm pretty sure we'd have heard about it already too

 

[coolredwine]

Transfer fees aren't usually paid up front. Most of the time you pay them over a few years.

Are you saying that United hasn't spent 500M in the last few transfer windows?

 

[Scarecrow]

The internet was a mistake.

 

[Catt]

The internet was a mistake.

 

[Inter Yer Nan]

Our fee's, what we owe, our wages etc; are always a topic bizarrely. Probably the most lied about club and are always the one most sensationalized (when the news is painted as bad only).

 

[M Utd]

At the end of the day does it matter? I can only imagine that if we owe cash for doing these types of transfer dealings (long term pay off) then so does every club. Therefore we are no more disadvantaged. Either way it's probably bull5hit.
With out income I'm not nearly as worried about this type of debt as I am about the wider finances of our club. If anything we underspend compared to our financial capability.

 

[Jake]

Deferred consideration for purchasing assets. Who would have thunk this?

Doubt it’s as high as what’s been reported but this is absolutely standard stuff considering the time value of money. Paying off deals later on down the line is much more beneficial then upfront.