Manchester United can use all the help they can get to keep their finances in order, and Real Madrid’s deal for Alvaro Fernandez was one they were keeping a close eye on.
Alvaro Fernandez was sold by Man Utd to Benfica, and he impressed this season, earning interest from Real Madrid.
Madrid had been in talks with Benfica for Fernandez for a while, and Man Utd were betting on a lucrative deal being agreed for the player due to the sell-on clause they held for the full-back.
That deal has now been agreed, especially since Benfica had found a replacement earlier, but it’s not entirely positive for United, as their expected windfall has been halved.
Alvaro Fernandez #42 of Manchester United during team warm-up before the Manchester United v Athletic Bilbao, pre-season friendly match at Aviva Stadium on August 6th, 2023
Photo by Tim Clayton/Corbis via Getty Images
Man Utd windfall from Alvaro Fernandez sale
The early expectation was that United would get 40% of Fernandez’s transfer fee due to their sell-on clause, which also made him a lucrative buy-back option.
However, Fernandez’s heart was set on Real Madrid, so the best United could hope for was their sell-on clause coming through and making them a bit richer.
While that is set to happen, it won’t happen to the extent it was first reported.
Portuguese outlet A Bola (22 June edition, Page 4) reports that a deal between Benfica and Madrid has been agreed for €45 million, which is a blow in itself since it’s below his release clause.
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As per the report (source link in Portuguese), the rest of the fee will be paid via ‘other costs associated with the transfer’, namely the percentage paid to Gines Carvajal, Fernandez’s agent.
Now for the hammer blow, the reported sell-on fee for United is only 20%, instead of 40%, and even that is on profit on sale, instead of the plain transfer fee.
That means United will get 20% on about €40m, since they sold the player for around €5m in the first place (45-5). It comes out to €8 million, or £6.8 million.
Alvaro Fernandez sums up Man Utd’s mistakes in the market
For a club that prides itself on the tradition of bringing through youth players, United had moved too far away from that in recent years.
Looking for expensive solutions outside when exciting players sat in the academy waiting for a chance is how clubs get themselves into financial ruin.
Fernandez’s case is another in the same vein, as just six months later, United had to splash on Patrick Dorgu when the Spaniard closed the door on a return.
Fernandez’s mistake can be repeated too, this time between the sticks as United are searching for goalkeepers around the continent while having Radek Vitek in their ranks.
The likes of Ayden Heaven have shown what can happen if the youngsters are trusted with minutes and responsibility, but United keep looking for expensive young talents elsewhere.
If the same player were coming through the ranks at Carrington, he would probably be ignored for an outside solution. Ruben Amorim needs to correct that tendency starting this summer.
United’s financial situation is way too precarious to be this careless with money.