Erling Haaland: Finance guru reveals FFP ramifications of ‘mind-blowing’ £193m Man City deal
Man City could shell out over £100million to sign Erling Haaland and barely make a dent in their financial fair play standing.
So says finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the 21-year-old superstar’s potential move to Manchester.
The Daily Mail reported on Tuesday (15 March) that City are ready to make the Borussia Dortmund forward the best-paid player in the Premier League.
He would earn around £500,000-a-week if the Premier League champions win the race for his signature and activate his £63m release clause.
It is understood that the total cost of the deal would go beyond £193m with agent fees and signing on bonuses taken into account across a five-year contract.
City are one of the only teams in Europe to have recorded a financial profit over the last financial year.
And Plumley claims that a “mind-blowing” deal for generational Norweigian attacker Haaland is well within their financial capability.
“With FFP, it wouldn’t have that much of a hit,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“City are one of a very select group of clubs who could afford this deal. There are lots of moving parts. The transfer fee itself is unlikely to be paid in one hit.
“That has an impact on the profit and loss account, which is where FFP comes in. It wouldn’t be £100m out immediately.
“Wages at £500,000-a-week, that comes to about £26m per year. Not bad. City’s total wages in 2021 were £355m. Their turnover was £570m.
“So you had a 62 per cent wages-to-turnover ratio. There is some flex there, even if you add £26m onto that figure. So it’s no problem for the bottom line.
“With amortisation, the way player contracts are recorded, you divide the length of the contract by the transfer fee.
“There is a cost element to that but it is written off as an expense. Also, if you renegotiate that contract then the cost falls.
“City aren’t on the radar of FFP. Despite the massive numbers, it’s a comfortable signing for City.
“That is mind-blowing, but that’s where we are at the top end of English football.”
Haaland has netted an astonishing 23 goals in 22 appearances this season.
He has scored 80 times and supplied 21 assists in 80 games since he joined Dortmund in January 2020.
In other news, pundit claims Gabriel Jesus will be “fuming” after he’s axed by Man City.