Kieran Maguire: Spending could ‘explode’ at Man United after Raiola reveal
Man United would immediately spend far more on wages if transfer fees were scrapped by the football authorities.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about super agent Mino Raiola’s recent suggestion.
Fifa has proposed a cap on payments to agents that would limit them to 10 per cent of any transfer fee or three per cent of the value of a new contract.
But as per the Daily Mail last Monday (20 December), Raiola insists that “the whole system is wrong” and football should “abolish the transfer fee”.
Raiola represents United’s Paul Pogba, as well as reported transfer target Erling Haaland.
Maguire predicts that United, who have not had a positive net spend in any season since 2009-10, would spend big on wages under Raiola’s suggestion.
“Wage spending would explode, without a doubt,” he told Football Insider‘s Adam Williams.
“Managers are normally given a playing budget, which is the total cost of recruiting a squad.
“That cost is effectively amortisation plus wage bill. If you get rid of transfer fees, you get rid of amortisation.
“It would, however, have a detrimental impact on clubs who are net sellers. They use a development model to help fund spending on wages.
“There would be winners and losers, but those clubs who are big net spenders would simply substitute transfer fees for wages.
“It would certainly benefit Mr Raiola’s clients. Never say never with these things.”
The Red Devils are due to play Newcastle United at St James’ Park this evening (27 December).
Ralf Rangnick’s side will move into 5th place with a win.
In other news, pundit tips Man United to executive “perfect plan” in January after source’s transfer reveal.