Manchester United’s transfer window can only truly kick into gear once they start selling players, and Jadon Sancho stands at the top of that list.
Between the wages for Jadon Sancho, Chelsea’s penalty fee, and a potential transfer fee from Juventus, who have been linked concretely, it’s a sale United need.
It has been reported that it is also a sale that United could complete soon. Therefore, as the club finally close the chapter on this disastrous saga, United in Focus looked into the figures behind his potential exit.
The huge sum United will save by selling Sancho is worth noting, although the larger issue it works towards solving is equally as important.
Manchester United winger Jadon Sancho facing Wolves.
Photo by Gareth Copley/Getty Images
Man Utd’s saving from Jadon Sancho sale
United’s current financial situation is a result of spending like a Champions League club while consistently playing not even like a Europa League team.
Even setting aside the transfer fees spent on the likes of Sancho, Antony, or Casemiro, their wages are a bigger problem, since they hurt the club weekly, while the transfer fee hurts annually.
In Sancho’s case, his wages made it impossible for Chelsea to buy him, and he’ll most likely receive a pay-off from United if he’s sold too.
Putting all of that into thought, GRV Media’s head of football finance and governance content, Adam Williams, laid out the numbers from Sancho’s potential sale.
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Note: This calculation notes Juventus’ interest in Sancho for a reported fee of £21.5m. All figures mentioned are from 2023/24, the last whole financial year for which records are publicly available
Williams said: “Getting Sancho’s wages off the books for the remaining year on his deal is probably going to be worth the best part of £16.5m.
“You’re also going to be saving a small fortune in national insurance, image rights, and variable pay, if those figures aren’t included in the reported salary he earns. I think it could be about £20m saved there. There’s £5m in cash from Chelsea, which isn’t to be sniffed at a time when cash flow is tight.”
“Then with the £21.5m fee itself, we don’t know how the deal will be structured, but I suspect it’ll be three or four annual instalments. In total, then, it’s going to be £46.5m or thereabouts. There is some margin for error with that figure, but it won’t be too far out.
“In terms of PSR, you’re going to make a small profit of around £5-6m based on his amortised book value.”
The true benefit of Sancho’s sale will come later
A big reason why United would be happy to take a short-term financial hit on Sancho’s sale is laid out in the numbers above, where they stand to save nearly £46m from his move.
However, Williams says that the true benefit of this transfer will be a cascading effect on the wage structure, which is long overdue for a reset.
United’s wage bill for 2023/24, the last time they were in the Champions League, was £365m, as per Williams, smaller than only Man City (£413m) and Liverpool (£386m). That is the ‘white elephant’ in the room.
He said: “The biggest, most significant element to his potential departure is that it is going a long way to rebasing the wage bill.
“They have banged the drum about moving to a more incentivised contract structure where they don’t have white elephants like Sancho or Antony taking home enormous salaries without a return on the pitch.
“You need to ensure that you’ve got a leg to stand on when speaking with agents and players you want to sign. It’s no good saying ‘we have this new system now and Player X will earn if he delivers for us’ when they can just turn around and say ‘what about Sancho of £350,000 per week?'”
It’s clear that while it’s easy to blame Ineos for the slowness in the market, they’re working from a no-win position, trying to shift unsellable contracts.
The rebuild was never going to be done in just one window, but Sancho’s sale will be a big first step. Man Utd fans are yearning for the day when there are no Glazer-era contracts on the books.