Manchester United’s transfer budget is set to be shrunk by the Premier League’s financial rules.
Since becoming co-owner of Manchester United, Sir Jim Ratcliffe has been focused on cutting costs and balancing the books at Old Trafford.
It has led to several controversial decisions including Ratcliffe cutting 250 jobs as well as ending Sir Alex Ferguson’s contract.
United’s first-quarter accounts for the 2024-25 financial year showed a £6.8m loss, which adds to even heavier losses suffered over the past three years.
As a result, United’s transfer budget for January is set to be shackled. One way of navigating the regulations and increasing the budget would be to make a major sale.
Marcus Rashford of Manchester United celebrates after scoring their 1st goal during the Premier League match between Manchester United FC and Evert...
Photo by Simon Stacpoole/Offside/Offside via Getty Images
Man United open to selling Marcus Rashford
Ruben Amorim will want to strengthen his Manchester United squad in 2025 but will know that sales are required before welcoming new arrivals.
Amorim is open to selling Christian Eriksen and Antony in January to increase the club’s budget, while fresh reports suggest a decision could be made around Marcus Rashford.
According to journalist Florian Plettenberg, United are open to selling Rashford as early as this January. He is not considered “unsellable”.
MORE UNITED STORIES
🚨🔴 Manchester United would sell Marcus #Rashford at the latest by the summer and would already be open to top offers in the winter. The club acknowledge his development under Ruben #Amorim but consider him definitely not unsellable.
One reason why a sale is being discussed:… pic.twitter.com/x8e5ALsQbL
— Florian Plettenberg (@Plettigoal) December 10, 2024
View Tweet
The report adds that one reason why Rashford’s sale is being considered as it would provide flexibility for United under the Profit and Sustainability Rules.
Finance expert on the impact of Marcus Rashford being sold
United in Focus spoke exclusively to football finance expert Adam Williams about the impact that Rashford’s sale would have on the club’s finances.
“Ten Hag’s compensation, the cost of appointing Amorim, and the expenses associated with Dan Ashworth’s short time at Old Trafford have left them in an uncomfortable spot when it comes to PSR. You’ve also got the expenses associated with making hundreds of staff redundant,” Williams said.
“They only managed to steer away from a breach under the Premier League system in the last three-year assessment window because of the £40m in lost income they attributed to the pandemic.
“They lost over £100m in 2023-24 and about £30m in the previous financial year. The Premier League’s allowable loss limit is £105m, so – although certain costs are exempt from the calculation – you can see why the margins might be tight.
READ MORE: Finance expert predicts third billionaire could buy Man United stake in trio with Ineos and Glazers
“They can lay the blame at the Glazers’ door for those previous annual losses, but United’s 2024-25 predicament is a mess entirely of Ratcliffe and Ineos’ own making.
“Uefa’s system meanwhile has lower acceptable loss limits and a squad cost cap. That is assessed on a calendar-year basis, so it’s a bit more tricky to discern United’s position based on their season-by-season accounts, but it looks like things could be precarious there too.
“If they sold Rashford, it would be an emotional departure, but it would more or less solve any PSR anxieties they might have overnight.
“As an academy graduate, his sale would count as what is known as ‘pure profit’. If they got, say, £60m for him, it would reduce their losses by exactly £60m.
“By contrast, non-academy players have their outgoing fee offset against their amortised book value, which is their initial fee spread out over five years. A £50m signing has a book value of £50m in year one, £40m in year two, £30m in year three and so on. Their sale price is detracted from their value.
“You can actually end up making a PSR loss on these sales if the sale price doesn’t exceed their book value.
“Rashford doesn’t have a book value as he never cost United a fee, so his sale would be pure profit. Plus, you get his substantial wages off the books.”
Related Posts