Kieran Maguire shares ‘£90m’ Man United spending reveal
Uefa’s ‘complex’ Financial Fair Play regulations would make it difficult for new owners at Man United to increase the transfer budget.
That is the view of finance expert Kieran Maguire, who spoke exclusively to Football Insider about United’s FFP issues this summer.
The Red Devils face a limited budget this summer with Financial Fair Play issues affecting the club’s transfer business.
As per Premier League rules, clubs are only allowed to lose £105million across three seasons, although the breakdown of that limit is £15million plus £90million equity payments from club owners.
As the Glazer family have not invested any money into the club, United must ensure their losses don’t exceed £15million in the last three years.
Should a takeover be completed this summer, Maguire explains that new owners could solve this FFP issue through investing but still face the ‘complex’ issue of meeting Uefa’s financial regulations.
“If there is a change of ownership at Old Trafford this summer, one way of bolstering the budget is for new owners to invest money into the club in the form of new equity shares,” Maguire told Football Insider’s Sean Fisher.
“That would help to address the Premier League’s profitability and sustainability rules as it would allow United to spend an additional £90m over three years on a combination of wages and amortisation.
“For Uefa, it’s slightly more complex.
“They have recently changed to their new financial sustainability regulations which allow clubs to only lose €60m (£51m) over a three-year period.
“Also, we’re effectively moving to a wage cap of 70 per cent of revenues, although admittedly this has not been an issue for United in recent years.“
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