Manchester United have had to keep a close eye on their finances over the summer transfer window.
Defeat in the Europa League final last season meant Manchester United missed out on European football entirely, and reports suggested United were close to their PSR limits as a result.
Sir Jim Ratcliffe has been public about United’s financial struggles, claiming that the club was going bust by the end of 2025.
However, United are now closing in on signing Benjamin Sesko and a £73m deal for the RB Leipzig star means spending for the transfer window will surpass £200m.
Matheus Cunha was signed for £62.5m to kickstart the summer rebuild, but it turns out United moving quickly for the Brazilian was very important.
Matheus Cunha in action for Manchester United against West Ham United
Photo by Emilee Chinn – Premier League/Getty Images
Man United registered Matheus Cunha signing in 24/25
The current Profit and Sustainability Rules assess a club’s losses over a rolling three-year period, meaning the money spent this year will have a long-term effect.
As reported by The Athletic, United were able to confirm Matheus Cunha’s signing before the end of the financial year on June 30.
United in Focus spoke exclusively to football finance expert Adam Williams about what this means for the club’s finances and why it is a clever move from the Red Devils.
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“The Cunha deal being technically completed in the last financial year doesn’t have a direct impact on this current financial year. Why? Because his annual amortisation cost and wages are still going to be the same regardless of when the deal went through.
“What the timing of the deal does represent, however, is that United believe they had the PSR headroom to take a £12.5m hit in 2024-25.
“If you’re able to get the deal done earlier with no risk of reprisal, you may as well. It means that the player’s book value will reduce quicker, so if you one day sell him, you will get a bigger PSR profit.
“So it’s not going to move the needle much as far as the current season’s PSR assessment is concerned, but it’s good practice.”
Finance expert on Man United’s current PSR stance with ‘£200m’ issue
United were able to reasssess their PSR stance before submitting a huge £73m bid for Sesko, and Williams explained why that is the case.
“On paper, United look like they should be in trouble with PSR, but the fact that their financial position is assessed through a subsidiary company, Red Football Limited, means they actually have plenty of breathing space,” Williams said.
“Exactly how much space, it’s difficult to say. We don’t have the full 2024-25 figures yet and, even if we did, working out the allowable deductions is near impossible.
“One thing is for sure though – no European football this season is going to weigh very heavily on the top line. Amortisation is now running at close to £200m annually and will surpass that mark if they sign Sesko.
“They are reducing costs with the wage bill – not only with the likes of Rashford departing but also the massive cuts to the wider staff – but we don’t know the full impact that’s going to have yet.
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“Even with a leaner cost base, I think that a couple of seasons outside Europe would start to cause them problems with PSR. That’s before we even consider access to cold, hard cash, which is also an issue.”
A return to Europe will be the aim for United in 2025/26, and it sounds as though it is crucial that Ruben Amorim doesn’t miss out again.