Jadon Sancho is becoming a bit of a problem for Manchester United, to say the least.
The English winger has been the subject of transfer speculation all window, but despite many teams seemingly wanting to acquire Sancho’s signature, the Manchester United man is playing hardball.
Sancho’s lucrative wages at Manchester United appear to be the issue. TBR Football revealed recently that Roma were keen on Sancho, but this broke down due to the former Borussia Dortmund man not budging on personal terms – wanting to earn not a penny less than he’s on at Old Trafford.
This was a similar story to Sancho’s proposed Chelsea move.
Jadon Sancho looks on in Manchester United training kit
Photo by Eddie Keogh – The FA/The FA via Getty Images
So just what are the implications for the Red Devils? Football finance expert, Adam Williams, walks us through it.
What does Jadon Sancho cost Manchester United per year?
Head of Football Finance and Governance Content for TBR FootballWilliams breaks down Sancho’s contract bit by bit, and explains the ridiculous amount that his Roma, among other clubs, U-turn and stubbornness, could cost United.
Williams states: “Sancho is variously reported to be on somewhere between £250,000 and £300,000 per week. But those figures are probably a little reductive and, in reality, he likely costs the club somewhere in the region of £20m per year in cash, and even more in terms of PSR.
“That figure will vary from year to year, based on his individual achievements, or lack thereof, as well as how the team performs. With no European football, you would hope that there is a significant step-down clause in his deal.
“Historically, United’s wage bill has fluctuated less from season to season than some of their peers and, though they have moved to more of an incentivised structure since Ratcliffe arrived, Sancho signed before that, so it may well be that his basic pay will still be at that top end regardless of where United are at on the pitch.
“You also have employer National Insurance contributions which are 15 per cent at the moment. Let’s say, conservatively, that his basic pay is £250,000. That’s almost another £35,000 per week.
“On top of that, United are paying for his image rights. Sometimes this will be reported as part of a player’s basic salary, others not. Then there are other types of insurance and agent costs.
Jadon Sancho of Manchester United in action during the 2024 FA Community Shield match between Manchester United and Manchester City at Wembley Stadium on August 10, 2024
Photo by Neal Simpson/Sportsphoto/Allstar via Getty Images
“I think it’s safe to say that, when you look at United’s wage bill of £365m in the last financial year, it’s safe to say he will be costing United £20m per year. That’s a huge barrier to getting him off the books. There are very few clubs who can afford to get anywhere close to that.
Sancho’s ludicrous wages also a factor at Old Trafford
But that’s not all, with his wages, plus amortised transfer fee, Sancho’s annual impact comes to around £35m a year.
“As well as the cash cost of the wages, his transfer fee is being amortised at a rate of around £15m,” Williams continues.
“So his annual impact on the club’s bottom line is around £35m. There’s some margin for error here, but it’s certainly not going to be too far off. For context, that’s about the same bottom-line impact as Wirtz is having at Liverpool. He was a British record signing.
Player Club Estimated annual bottom-line impact
Jadon Sancho Manchester United ~£35m
Florian Wirtz Liverpool ~£35m
“Not all of that is a cash cost. Amortisation, which is how clubs account for transfer fees over a period of time, is a non-cash expense, but it does impact PSR. They’re fine on PSR as things stand, but there’s no getting away from the fact that Sancho is a money pit as far as the owners are concerned.
*“If they sold him for any less than £15m, they would make a PSR loss on the sale. But I think cash is the more pressing concern here. They’re obviously not in a position to be playing hardball. If it’s a choice between selling him and only breaking even for PSR purposes at, say, £15m, or keeping him on the books or loaning him out and saving 50 per cent of his wages, I think they should just take the PSR hit.*“
Sancho is not just a problem on the pitch, but a financial horror off it. Will United offload him this summer? That remains to be seen, but the figures speak for themselves; they’ll be desperate to.