Summer Transfer Budget?



From 2.29 in this video Ornstein talks about United.

We can buy Cunha (£62.5m) and Delap (£30m) without any sales. Also both are not related on playing European football next season. Pleased to hear we have circa £92.5m available for 2 quick buys.

Sales will then allow us to buy more. Lets say:
  • Rashford (£40m)
  • Sancho (£25m)
  • Antony (£20m)
  • Greenwood (sell on profit clause - I'll guess £15m)
The above sales should leave us with another £100m to invest = new central midfielder, £60m. New wingback, £40m.

Moving on to the more difficult sales, I think we may also sell Garnacho as he doesn't fit the system (£60m), and Hojlund (£20m) and Onana (£20m), which would allow us to buy = another new striker (£60m) and new goalkeeper (£40m).

Plus the removal of Lindelof and Eriksen wages (£120k and £150k per week). Heaton will be gone too (£40k per week) so we will need a new cheap third keeper.

Could be a big summer.

Agree with your view in principle but we can not sell Antony for less than £34m, Hojlund for less than £39m and Onana for less than £27m without making considerable losses, so I doubt the players you suggest will leave for the prices you hope for.

You hoping for a £295-300m spend, admittedly after selling players for £200m, just don’t think our club executives are that competent!
 
Interesting thanks!

When you say you've assumed that players who've had a contract extension don't have further PSR costs, do you mean after they've been here 5 years? And how much of an assumption is this? Is it likely to be true?
When a player contract expires then the amortised cost of the basic transfer fee has expired, however if he has various bonus clauses included then they are normally settled during the last year and some ancillary payments can be made after the contract term has expired dependent on the two teams reaching an Agreement. Maybe a good example was Bruno £47.6m rising to £63m subject to bonuses for trophies, CL Qualification , performance and appearances etc. If part of that £15m bonus gives £2m per year as part of a £3m per year bonus in CL and we qualify for the CL by wining the Europa League then United would owe Sporting £2m and 10% of that fee to Sampdoria as payments in 25-26 season. Thats my assumption anyway having read endless UEFA rules
 
Bumping this because we have no CL and so we need to get creative on the transfer budget front. I see a few options here all depending on owners appetite for cash injection:
  • Barca / levers approach: Bring in additional private equity cash injection. Glazers / Ratcliffe dilute their share because the asset is already declining in value (7% share drop after the result yesterday) and can continue to drop if we don't make it back to the CL quickly. There were some rumors of the Qataris buying into United with Ratcliffe. Maybe that.
  • PSR hackery: Sell Carrington / whatever other assets we may have (land, hotels) / Women's team to a sister company owned by Glazers + Ratcliffe. Use that as revenue.
  • PSR hackery #2: Sell youth products (Garna / Rashford). That gives us enough PSR cap. Spend basically to the limits of what PSR allows by taking on additional debt and hope we make it back. I'm sure the Swedish Rumble or whatever his name is will come in and say we can spend 300m and be fine PSR wise. If it doesn't work out, take the points deduction and sell to the Qataris.
  • The Juve approach: Kick the can down the road another year, sign a few players on loan + obligation to buy and hope we make it to Europe next year.
There's always the do nothing, be responsible and rebuild slowly approach. We still make way more money than the likes of Brentford, Fulham etc. given commercial deals, match day revenues and all that. It shouldn't be that hard to leap frog to top half next season. Cashing in on Bruno and Garna should allow us to do some stuff in the market and fill many positions.
 
The Times newspaper said today, the summer budget is £100m plus any funds from sales. So not that much. If we look for free transfers and players in last year of their contracts, we might be able to put together a team next season to avoid relegation.
 
The Times newspaper said today, the summer budget is £100m plus any funds from sales. So not that much. If we look for free transfers and players in last year of their contracts, we might be able to put together a team next season to avoid relegation.

That’s not a bad budget situation to have tbf just to be able to make it to top 4.
 
The Times newspaper said today, the summer budget is £100m plus any funds from sales. So not that much. If we look for free transfers and players in last year of their contracts, we might be able to put together a team next season to avoid relegation.
100M + any money from sales is pretty workable and decent tbh. That's Cunha + Delap funded, and then any extras through sales. Seems reasonable. You manage to get rid of Rashford, Antony, Sancho, that's probably enough to fund a centre mid and a wing back.
 
We'll spend loads, and money isn't a problem. It's lack of effective squad clearout can create complications both in the office, and then on the pitch.
 
Money isn’t a problem?
No, if you can balance it with much needed departures.

I hear every window, we lack money, but we found ways even under sole Glazer's ownership, and now with Sir Jim who seem to be keen on investing, it really doesn't scares me much, in that aspect.
 
We'll spend loads, and money isn't a problem. It's lack of effective squad clearout can create complications both in the office, and then on the pitch.
Money is a huge problem. Yes, we can somewhat mitigate our transfer constraints by selling players with economic value, but it doesn't change the fact that our finances are absolutely fecked.
 
No, if you can balance it with much needed departures.

I hear every window, we lack money, but we found ways even under sole Glazer's ownership, and now with Sir Jim who seem to be keen on investing, it really doesn't scares me much, in that aspect.
But under the Glazers our cash on hand has dwindled over the last 5 years to effectively nothing and we have been buying players on credit. Sir Jim is not interested in investing in the squad and after losing a quarter if his wealth in the last 12 months is beginning to make the sort of noises that suggest INEOS may be considering an exit strategy already. A lot of the players we would like to sell are the ones we still owe a shedload of money on too and so the revenues won't be great there either.

We need to start looking for bargains and we also need to be very strategic in our thinking. We are allowed a couple of loan players so let us use that and plug a couple of gaps with stopgap loan signings and hope to be better placed to make a long term investment in another year. We will need to hunt for a few bargains but they are out there, we just need to not panic and overpay for players who don't fill an obvious need or who are too wedded to a specific system.
 
Money is a huge problem. Yes, we can somewhat mitigate our transfer constraints by selling players with economic value, but it doesn't change the fact that our finances are absolutely fecked.
Sudden change of manager, most likely is forcing the club to spend on needed players for current formation. The supposed money problem in huge part originated from that decision.

All we can do is sell, and reinvest smart, without fear, or perhaps not much will change.

I see swift action towards Cunha scoop, and immediately thinking, we have some chips, but definitely agree on being careful where we bet.
 
But under the Glazers our cash on hand has dwindled over the last 5 years to effectively nothing and we have been buying players on credit. Sir Jim is not interested in investing in the squad and after losing a quarter if his wealth in the last 12 months is beginning to make the sort of noises that suggest INEOS may be considering an exit strategy already. A lot of the players we would like to sell are the ones we still owe a shedload of money on too and so the revenues won't be great there either.

We need to start looking for bargains and we also need to be very strategic in our thinking. We are allowed a couple of loan players so let us use that and plug a couple of gaps with stopgap loan signings and hope to be better placed to make a long term investment in another year. We will need to hunt for a few bargains but they are out there, we just need to not panic and overpay for players who don't fill an obvious need or who are too wedded to a specific system.
That's exactly what needs to happen. Strategy without panic, bargains are there, just like in the past. Use Saudi market if needed.

Jim can go, and other potential investors will come, but I don't think he'll pass on opportunity to own that huge of a football club.
 

I hate seeing this myth brought up time and time again. Accounting profits don't magically make cash appear in your bank account.

There's also the inconvenient fact that even if we did have the cash to pay for such purchases, we'd still be on the hook for their accounting expenses for the next few years.
 
I hate seeing this myth brought up time and time again. Accounting profits don't magically make cash appear in your bank account.

Exactly, this is how we have been operating for a few years and it is why the cash in the bank on our accounts has dwindled to something ridiculous like 11M and we still have around 300M in obligations for players we have already signed. You can do this for a couple of windows but ultimately you have to actually pay for the players and we don't have any actual money left. Sadly we can't all be owned by a Russian oligarch who would loan us a billion quid for transfers and then write it all off on his way out of the door.
 
What about the hundreds of millions we spent to get Hojlund, Antony, and Sancho in the club in the first place? That doesn't just disappear off the books.

All players who should be up for sale this summer with much of their fees already amortised. Its less of a hit that you would think even though it will be some hit.

You also have to account for all the wages we can possibly get off the books this summer. Transfers are total of fee and wages so the wages off the books makes a big difference

Add to this that we can also get PSR income from Alvaro Carreas and Greenwood this summer

A competent recruitment team can do a good job this summer. There is also scope for INEOS to also put their money where their mouth is
 
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I hate seeing this myth brought up time and time again. Accounting profits don't magically make cash appear in your bank account.

There's also the inconvenient fact that even if we did have the cash to pay for such purchases, we'd still be on the hook for their accounting expenses for the next few years.
They do if your credit is good. All the actual transfers of money are mostly done through banks anyways
 
They do if your credit is good. All the actual transfers of money are mostly done through banks anyways
We're already very stretched there.

The implication is that through accounting magic, we can sell £100m worth of players and sign £400-500m worth of players as a result every season. That's not realistic nor sustainable.
 
I hate seeing this myth brought up time and time again. Accounting profits don't magically make cash appear in your bank account.

There's also the inconvenient fact that even if we did have the cash to pay for such purchases, we'd still be on the hook for their accounting expenses for the next few years.
She hasn't a clue
 
She hasn't a clue

Kieran Maguire actually backs up her claim. She has more of a clue that you think.

Also cash is not the issue PSR is. United can borrow cash to pay transfer fees and also most of the deals you would do would be paid on instalments over the years of the contract.

Also the post is talking about selling quite a few players to make that happen not just Rashford and Garnacho
 
We're already very stretched there.

The implication is that through accounting magic, we can sell £100m worth of players and sign £400-500m worth of players as a result every season. That's not realistic nor sustainable.
Yes, that's likely to become unsustainanle in the long run, unless you secure extremely favorable payment terms or your revenue goes up significantly every year
 
Kieran Maguire actually backs up her claim. She has more of a clue that you think.

Also cash is not the issue PSR is. United can borrow cash to pay transfer fees and also most of the deals you would do would be paid on instalments over the years of the contract.

Also the post is talking about selling quite a few players to make that happen not just Rashford and Garnacho
Yeah but she forgets just like he does that we still owe money on players from previous transfers
 
The Times newspaper said today, the summer budget is £100m plus any funds from sales. So not that much. If we look for free transfers and players in last year of their contracts, we might be able to put together a team next season to avoid relegation.
Thats been the budget more or less every summer for the past 5 years
 
We're already very stretched there.

The implication is that through accounting magic, we can sell £100m worth of players and sign £400-500m worth of players as a result every season. That's not realistic nor sustainable.

1) It does not say every season.
2) Its obviously is relying on future success
3) If the club can move from spending more of its revenue on the football side of the wage bill and less on its operations (which the club are trying to achieve) it opens this up even more
 
Yeah but she forgets just like he does that we still owe money on players from previous transfers

No they did not.
Many of those players are included as sales with fees which cover their on book value if you actually read the post. And even if you only get 75% of on book value that still works out.
 
We need to spend at least 200 - 250 million on 5-6 players. It's partly due to needing to get young, hungry, more athletic and technical proficient players but also because I think the current squads mentally is destroyed. It's going to be hard to get those players confidence back at United and I think we need a huge clear out this summer.
 
Yes, that's likely to become unsustainanle in the long run, unless you secure extremely favorable payment terms or your revenue goes up significantly every year

Exactly.

Even in PSR terms its not really sustainable because you're booking 100m PSR profit for the 25-26 accounting year and making 100m PSR commitments for not just that accounting year but also the next three or four accounting years. So hold all else equal and in 26-27 you're going to need to find another 100m in PSR profit, then again in 27-28, etc.

This is why Chelsea eventually had to start selling themselves their own hotels.
 
We need to spend at least 200 - 250 million on 5-6 players. It's partly due to needing to get young, hungry, more athletic and technical proficient players but also because I think the current squads mentally is destroyed. It's going to be hard to get those players confidence back at United and I think we need a huge clear out this summer.
We actaully need to make about 7-8 signings this summer. Not all starters though and 2-3 can be young cheap prospects like Heaven. The 5-6 must be starting calibre players and we need to be making use of the free transfer market too
 
Exactly.

Even in PSR terms its not really sustainable because you're booking 100m PSR profit for the 25-26 accounting year and making 100m PSR commitments for not just that accounting year but also the next three or four accounting years. So hold all else equal and in 26-27 you're going to need to find another 100m in PSR profit, then again in 27-28, etc.

This is why Chelsea eventually had to start selling themselves their own hotels.

You did not read the post properly.
The post talk about selling more than just Rashford and Garna so PSR commitments are not actually increased by 100m every year

No Chelsea spent over 1bn not 300-400m and have less significantly less revenue than United
 
We actaully need to make about 7-8 signings this summer. Not all starters though and 2-3 can be young cheap prospects like Heaven
Yea but I think with a new starting GK, RWB, CM, AM and CF we would be a different team. That would be almost 50 percent of the team refreshed. Also we will need a smaller squad next season due to no Europe.
 
We actaully need to make about 7-8 signings this summer. Not all starters though and 2-3 can be young cheap prospects like Heaven
We can also look at the loan market. Be open to good opportunities as they present themselves. We don't have to sign 7-8 players who are all perfect prospects who will be the spine of the team for the next 5 years in one window. You can stick a loan player or two in there as a placeholder til next sumer, you can sign a veteran free agent on a shorter term contract as we did with Evans. What we cannot do is run out next season with almost the same squad that finished this season. Amorim, or whoever is in charge, needs a squad that fits their style of play and then we can upgrade the placeholders over the course of a few windows.
 
Yea but I think with a new starting GK, RWB, CM, AM and CF we would be a different team. That would be almost 50 percent of the team refreshed. Also we will need a smaller squad next season due to no Europe.
No Europe means we should be more aggressive in moving on rubbish like Shaw and Maguire and Casemiro. We can also sell
players like Colleyer to help PSR
 
We can also look at the loan market. Be open to good opportunities as they present themselves. We don't have to sign 7-8 players who are all perfect prospects who will be the spine of the team for the next 5 years in one window. You can stick a loan player or two in there as a placeholder til next sumer, you can sign a veteran free agent on a shorter term contract as we did with Evans. What we cannot do is run out next season with almost the same squad that finished this season. Amorim, or whoever is in charge, needs a squad that fits their style of play and then we can upgrade the placeholders over the course of a few windows.
I agree. Its entirely possibe to refresh the squad. The question is does the recruitment team have the skill and do the club have the will.
 
No Europe means we should be more aggressive in moving on rubbish like Shaw and Maguire
Maguire will stay, we activated the extra year and he's been quite good. Also has leadership qualities. Shaw has to go though if we can find a buyer