Manchester United have money to spend this summer but their transfer budget has been squeezed by Financial Fair Play restrictions, sources have told ESPN.
According to ESPN, the Club MU’s latest financial statements, show that their cash reserves have fallen from £95.8 million to just £73.7 million. They also said they are ready to pay off credit debt of about £ 40 million and help raise the credit limit to around £ 250 million.
Another optimistic figure, Man United is able to reduce the total salary fund to just under 50% of income. With this situation, Manchester United is also optimistic that they can end their financial year with a record commercial income of £ 640 million.
However, Manchester United in this case also still has debt dependents. They reportedly still have a gross debt of 720 million pounds. This is the highest debt amount since 2010.
Manchester United posted positive financial results on Tuesday with revenue up 11% to £170 million ($216.5 million) for the three months ending March 31.
The third quarter results also include projections that full year revenue will be a record £630 million to £640 million.
Sources have told ESPN that despite the uncertainty surrounding ownership of the club, Erik ten Hag will be able to invest in his squad this summer.
However, the budget will be limited by UEFA’s FFP rules due to the club’s historic spending.
Manchester United themselves have yet to get any new recruits to their team in the transfer market this summer. ESPN recently also reported their budget has been slashed by FFP (Financial Fair Play) restrictions due to their spending record.
Manchester United are understood to have spent 142 million euros (£122 million / $155 million) in the 2021/2022 season and 243 million euros (£208 million / $266 million) in the 2022/23 season. This is part of the restrictions set by FPP.
Thus Manchester United, along with Erik ten Hag will still have the opportunity to buy players this summer. But numbers are limited by rules, and that has seen attempts to land Declan Rice and Harry Kane hit a wall.
There was no mention of the Glazer family’s “strategic review” in the latest financial results.
The US-based Glazer family, owners since 2005, are evaluating takeover bids from Qatari businessman Sheikh Jassim and British billionaire Sir Jim Ratcliffe, as well as a number of minority investment offers.
Frustration among fans mounted and on Tuesday supporters gathered outside the Megastore at Old Trafford to protest the Glazer’s ownership and the continued uncertainty surrounding a sale of the club.
The demonstration was planned to coincide with the launch of the new Adidas United jersey for the 2023-2024 season and the shop closed briefly to customers before being redirected to another entrance.
