Just been listening to Laurie Whitwell, who has been crunching the numbers for The Athletic on United’s spending this summer.
According to him, to meet FFP requirements, we were looking at a net spend for the next two windows (including this summer; FFP accounts are signed off in March) of ballpark £100-120m.
Total outlay so far, including Hojlund, will be £179m.
Now there are a few caveats here. One is that the £179m figure includes all add-ons, which will obviously not be paid upfront. That would work in the club’s favour in terms of squeezing what it could out of the FFP budget.
So *very worst case scenario*, we’re looking at needing to bring in something like £80m (and/or making equivalent adjustments - getting wages off the books, extending contracts to spread amortisation) over this window and the next in order to meet FFP requirements. More likely, the add-ons considered, we’re looking at ballpark best guess £20-£40m.
So far, the club has brought in £21m in sales: https://www.ja606.co.uk/articles/viewArticle/455996
What does all of this mean? Well, firstly, at present, we look more or less OK. Maybe another small sale or two to balance the books.
But it does mean that any further spending this window *and next* is going to need to be financed by sales (beyond that one or two) to bring in cash, adjust amortisation and wipe wages off the books. So, for example, shift all of Beekers, Fred, McT and Slabhead and we can probably afford Amrabat. Shift only a couple of them, and we might be stretching.
Instead, might the transfer team see how we go from here, shifting two or three players if we get decent offers, and instead hold on to the pennies in case ETH wants/needs to shop in January?
It looks like what we’re able to achieve in terms of outgoings could well be fairly important for the season to come.
Edited to correct one irrelevant point: thanks melts.
Spending and FFP
posted on 1/8/23
But we’d be wise not to poke the bear much further.
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Thing is, it kind of works both ways with Europe’s biggest clubs. Hence the new CL format. FFP’s teeth have shown themselves to be quite blunt, and that it’s also been in the interest of a certain few clubs as well.
posted on 1/8/23
comment by meltonblue (U10617)
posted 9 minutes ago
Pretty good summary of the new regs here -
https://www.footballbenchmark.com/library/overview_of_the_new_uefa_financial_fair_play_regulations
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Yeah, I posted that one above. One of the best summaries I've read
Dazza: re-reading that same link (more carefully this time, clearly ), I've found reference to what you were talking about in terms of owners injecting funds:
"One of the most relevant changes compared to the current scenario is the increase of the acceptable deviation over three years from EUR 30m to EUR 60m, keeping unchanged that this loss should be entirely covered by either contributions or equity."
I read that as you can spend EUR 60m over your limit over the three year rolling period, provided your ownership/investors pump the same amount in.
posted on 1/8/23
@AlfredoPedulla
List #MUFC: 1 #Onana ✅ 2 #Hojlund ✅ ✅ Next stop…Morocco
Alfredo has spoken.
posted on 1/8/23
comment by The Red Side™ (U11275)
posted 3 minutes ago
@AlfredoPedulla
List #MUFC: 1 #Onana ✅ 2 #Hojlund ✅ ✅ Next stop…Morocco
Alfredo has spoken.
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Is he a Pedulla of facts or a Pedulla of nonsense? (I have never seen him Pedul.)
posted on 1/8/23
comment by rosso says the time has come to unlock the unlimited Pote-ntial of the Fernançalvemiro triumvirate (U17054)
posted 8 minutes ago
comment by meltonblue (U10617)
posted 9 minutes ago
Pretty good summary of the new regs here -
https://www.footballbenchmark.com/library/overview_of_the_new_uefa_financial_fair_play_regulations
----------------------------------------------------------------------
Yeah, I posted that one above. One of the best summaries I've read
Dazza: re-reading that same link (more carefully this time, clearly), I've found reference to what you were talking about in terms of owners injecting funds:
"One of the most relevant changes compared to the current scenario is the increase of the acceptable deviation over three years from EUR 30m to EUR 60m, keeping unchanged that this loss should be entirely covered by either contributions or equity."
I read that as you can spend EUR 60m over your limit over the three year rolling period, provided your ownership/investors pump the same amount in.
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So not relevant to a club owner by the Glazers.
posted on 1/8/23
comment by rosso says the time has come to unlock the unlimited Pote-ntial of the Fernançalvemiro triumvirate (U17054)
posted 2 minutes ago
comment by The Red Side™ (U11275)
posted 3 minutes ago
@AlfredoPedulla
List #MUFC: 1 #Onana ✅ 2 #Hojlund ✅ ✅ Next stop…Morocco
Alfredo has spoken.
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Is he a Pedulla of facts or a Pedulla of nonsense? (I have never seen him Pedul.)
----------------------------------------------------------------------
It’s Alfredo the Grate in Italian.
posted on 1/8/23
Not suggesting we break FFP rules every year, just saying that getting a fine in a window where we are making some key signings and the club are only just seemingly getting things sorted and running fairly decently wouldn't be the end of the world.
posted on 1/8/23
comment by manutd1982 (U6633)
posted 20 minutes ago
Not suggesting we break FFP rules every year, just saying that getting a fine in a window where we are making some key signings and the club are only just seemingly getting things sorted and running fairly decently wouldn't be the end of the world.
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Aye, the odd tactical yellow is widely accepted in football.
posted on 1/8/23
English football*
Enter: Barry Smith. Aka, errrr, &
posted on 1/8/23
Alfredo has been top notch at Tweeting already widely known updates surrounding transfers this summer.