Manchester United news as financial position explained ahead of Ruben Amorim’s first summer transfer window
There is a vision to build an improved Manchester United both on and off the field of play, yet the message has always been it is still a long way from becoming reality.
This project began upon Sir Jim Ratcliffe and Ineos‘ acquisition of over a quarter of Man United‘s shares from the Glazer family. Since, a restructure of chief staff has taken place, a new first-team manager has been installed and more than £200m has been spent on players.
Plans are underway to build an ambitious £1bn new Old Trafford stadium, but amid substantial losses of over £300m in three years the club remains under pressure to stay financially compliant with Premier League profit and sustainability rules.
Cost-cutting measures, particularly those involving redundancies of hundreds of regular working staff members, have also caused much contention amid a period of rapid change at Old Trafford.
Painting a picture for the summer transfer window to come, Reach PLC’s Business of Football writer Dave Powell says: “The words of minority owner Sir Jim Ratcliffe in the media in recent weeks, as with the narrative around planning for several seasons away from Champions League action, should be instructive.
“United are in a period of transition and this summer will be the first that Ruben Amorim has had as boss, but unlike some of his predecessors, the wilful heavy spending that has been seen at Old Trafford in more recent years won’t be happening again, especially given the lack of a return on the investments made during that period.
“Should they win the Europa League this season then United’s summer plans will change given that it will unlock £100m of additional revenue for the 2025/26 financial year. But even if that happens, and that is a big ‘if’, then they will still likely pursue a more cautious, frugal and strategic approach to the market to facilitate a rebuild, and they know that even by getting into the Champions League via the backdoor it won’t push them that much closer to the clubs who have since breezed past them competitively in recent seasons.
“In terms of the kind of cash the club are likely to spend in the summer, it won’t be of the kind that has been seen, and Ratcliffe has tried to get out early to temper some expectation, it appears.”
Ratcliffe went as far to say earlier this month that ‘there is no money left in the club’.
“Player wages were at £364.7m in 2024, the third highest in the Premier League, while player amortisation sat at £187m, the second highest in the league,” Powell added. “These are ridiculous sums for such poor performance, and adding to these figures won’t be the order of the day.
“It seems more likely that seeking the exits of major earners like Marcus Rashford and Jadon Sancho on permanent deals will be counted as transfer successes this coming summer.
“United’s transfer debt is at its highest level of £331m, the second largest in the Premier League, and up from £277m in 2023, and it doesn’t take an expert to explain that in the face of challenging revenue streams and increasing costs, the club cannot operate in the market in the way it did.
“According to estimates from football finance expert Swiss Ramble, United’s PSR headroom was just £2m in terms of how much they could lose for the three-year period up to 2024.
“Given such tight margins, the need to reduce losses will be enormous before the end of the current 2025 financial year, and that will likely mean a push towards creating profits from player sales and reducing the wage bill before they commit to new additions, and the pool they will be fishing out of for talent will be a cheaper one given the potential for another loss-making season, and the fact that PSR remains in situ until at least the end of the 2025/26 season as Premier League clubs look to find unity on a way forward with new financial controls.”
Powell concluded: “United’s summer looks to be one of the most intriguing, and a lot of moving around of pieces may need to be done before they press on and look to start adding to the squad again in a meaningful way.”
2025-03-26 19:11:08
