Man United Financial Deep Dive

[@samgrimshaw878]

It’s amazing how different Phil sounds with a decent microphone

[@RunnaNo1]

I’m going to assume you’re joking, and know that this is not Phil…

[@princeaddopascal2969]

That’s not him cmon

[@user-zc2sz1os3j]

That ain't Phil.

[@samgrimshaw878]

It’s a joke guys

[@Muppetiers]

Your joke went over peoples heads.

[@TYH97]

Loving the new Muppetiers content recently

[@tomharrison6272]

19k subs for this channel is criminal. Great content for fans looking for measured, considered and well-sourced information! So much better than the rest of ignorant, hate-baiting shite that’s out there !

[@gregoryconran]

I agree, all the stuff the fans really need to know and starting to present as good as The Athletic - This Channel is RIGHT on point.

[@liamclarke5275]

£90m additional costs last year, just for just having the Glazers as owners is crazy. With any luck, this is done & we'll be pretty comfortable with PRS going fwd eliminating just some of these costs.

[@NorthRedPodcast]

This is solid stuff. I my honest opinion, the rules will eventually favor United due to its commercial viability, sponsorships, and gate and television revenue. I think a new Old Tradford - following the rebuilt Camp Nou and Santiago Bernabeu - would be a difference maker. Having our new CEO (Omar Berrada) in place will have a positive effect. I am hopeful!

[@ProjectFifty]

Well done PJ 👏

[@grobocop2213]

This is a superb video! 👏🏻

[@gregoryconran]

I agree, been so tired of explaining this, and arguing with fans over it... this is the kind of video fans need

[@nickraoyj]

Guys FYI it looks like we're selling Kambwala after all for a €10m package, according to Romano.

[@gregoryconran]

He wont be the only one, we will sell anyone that can be pure profit - ie it cost us little to nothing to sign them

[@pjjordan2171]

Do you mean why it increased each year? It's because each new signing ups the amortisation, and with fees always rising, the total just keeps getting bloated

[@gerardmorris9538]

Eaisjy the best explanation of our PSR situation. Well done 👏

[@borrowedtune]

I don’t think it’ll be anywhere near as long as you’re making out before we’re back at the top. It took the Abu Dhabi sportswashing project 4 years to 'win' their first league title after their takeover, and we’re already in a far better position than they were. I also don’t think things have to improve on the pitch before we go ahead with the new stadium. I reckon numerous architectural firms have already been briefed, and we should hear some news on that before the end of the year.

[@brianogorman7752]

Thanks for putting this together

[@sivek23]

BLud this is greatttt

[@Pugilist928]

How an earth are chelsea getting around this?

[@creepingbrain]

By making a lot of money by selling academy players. And by selling hotels to themselves. I'm still not sure their numbers are going to stack up though, and sooner rather than later that well of academy players is going to dry up, and they're going to run out of things to sell to themselves.

[@chrisclassical7]

great video

[@alisteell]

Thanks for this

[@jonathanball8237]

It makes me so angry how the Glazers have got us into this shit, and almost as angry for the premier league to allow this ownership destroy one of its flagships!!!!!

[@gregoryconran]

To be fair, it isnt just the glazers, yes ok we have a 50m loss for interest payments but it was not the Glazers choosing the dud players we bought, that was the Football Board, our problem is that we had old heads over riding the scouts and managers and deciding that they knew better about what players to get, had we listened to our head scouts and our managers we would be sitting pretty - ironically the head of global scouting that we fired, told us to get DeLigt and DeJong back when De Ligt was 17 and cheap- I hate the glazers, but they have spent plenty, the issue has been whom we spent it on, and that has very little to do with the Glazers, yes we overpaid and that part is on the Glazers, but the dud players are the Football boards fault

[@jonathanball8237]

@@gregoryconran it's amazing how so many ppl use this argument.... The Glazers are the most absentee owners the premiership has ever seen. Jobs for bankers, inner promotions to familiar faces. A stagnation of finances under their watch. Joel Glazer acting as default football director!? How is it NOT their fault. Theyre the ones that have put these people in charge without any consequences for their failures until Ineos has arrived!!!

[@gregoryconran]

@@jonathanball8237 I am not looking for an argument and actually most of what you are saying is correct, but not all of it. At the start it was all the Glazers fault, all of it, they really did control everything. But the reason they are absent is because they knew they had failed, they knew they had no football knowledge and the public were making that point excessively clear indeed. But what most people fail to understand is - control was ceded to the Football Board, the glazers decided to invest in "The Black Box" and the corporate side of the business, and thank GOD they did or would be broke right now, they left the football side of things to Ferguson and the Football Board. Yes Joel held the position, but he did not get involved until Glazer money was going to be spent, he had ZERO to do with our proor transfers. thats 100 percent on the Football Board, the irony is the Head of Global Scouting who was fired by the football board, recommended DeLigt and DeJong, back when De Ligt was 17 and cheap, our Head scout also quit because the football board would not listen, EVERY manager has mentioned that they have no been listened to on signings except ETH. Yes we employed accountants, lawyers and financers, they didnt even work AT the club, they worked in the Black Box in London they got us money and sponsorships. the people that ruined the club were the backroom staff and they are all Fergies mates, Ole, Carrick, Giggs, Butt, Scholes, Phelan, Hartis, Clegg, Fletcher, Maclaren (although ETH wanted Maclaren), Every manager had a minder that the football Board could control - the latest is now RVN - looks like RVP also will be coaching as soon as badges are done and Jones has lamost finished his badges and has been involved with the youth setup, Glazers are not employing their mates, Fergie was the one doing that - do you really think the Glazers decided to hire Ole, or Fletcher as TD with no experience, or bring back a near 60yr old goalie coach or sons of fergies ex players.. Yes the glazers are horrible for the club, but they did not destroy it

[@CnathanM]

Excellent video. Not only does this provide a good analysis of Manchester United's current financial predicament, but you also clarified the significance of a players' book value - something that is often missed by journalists when reporting on the potential sale of players, e.g. Sancho. This video should be required viewing for football journalists, and indeed fans looking for a more detailed analysis of PSR. I only have one comment on the sale of Donny van de Beek: although a loss of £6.6 million will be recorded owing to his relatively low transfer fee, will the savings on his wages not make up for most of that loss (reportedly in the region of £4 - £6 million)?

[@pjjordan2171]

Great point on the wage savings boosting our cash savings as a whole, but I'm terms of calculating PSR, the book value is all that matters and wages being saved don't get deducted from your losses. They will however get taken off your wage expenses for the following year so they do make a difference somewhere

[@CnathanM]

@@pjjordan2171 Ah, I see. Okay, thanks

[@creepingbrain]

Yes. We'll post a loss on the sale of him because his book value is less than the transfer fee received. But we aren't paying his wages, so for this financial year the wages saved will balance out the loss. It doesn't put us in a better position, or worse position, for PSR for this year, but next year we'll be better off, we'll have about £12m more PSR headroom.

[@chrisclassical7]

united are a midtable giant in rebuild mode. so what does it matter if we lose 10 points for smashing psr rules. still mid table next year but title contenders the year after.

[@creepingbrain]

It'd probably be the difference between qualifying for the CL or not. We need that CL money, and the pulling power of being a CL team, to complete the rebuild.

[@chrisclassical7]

@@creepingbrain i do agree on the champions league but the plan has to be to do what the best do. so why not follow city's plan and spend what you want and deal with the consquences as best you can. i'm sure ratcliffe can afford top legal professionals to tie the fa up in knots.

[@snorkelofsanity]

That was great.

[@peterhood1010]

excellent video,,,, but how have we found the $50m to get under the $105m ,,,,

[@creepingbrain]

There was also a £40m covid adjustment for 21/22 FY

[@peterhood1010]

@@creepingbrain ok (should be in the spreadheet) but although q4 is an estimate there still needs another 15m found

[@pjjordan2171]

@@peterhood1010 The £40m Covid adjustment was included in all 21/22 figures shown in the video, such as at 4:50. As for how we found it, we can only take the club's word that Q4 was a positive result but unfortunately we can't quite tell how it happened.

[@kevindoc88]

Fantastic video and a tad scary.....

[@SS-iy5zo]

Explain how amortisation increased step by step

[@adegboyegaajenifuja1274]

Amortization charge. Could be an interest charge: not sure maybe Cost of spreading out the payment over a number of years vs paying in bulk.

[@creepingbrain]

Amortisation is a reflection of gross transfer spending. The more you spend, the higher amortisation gets. During the covid years when, like all clubs, we didn't spend so much amortisation plateaued. Now that we've been spending big again amortisation has increased. The position we're in at the moment, with no champions league football, we don't really want to let amortisation grow above where it is. That doesn't mean we can't spend, it means that we can only add what we deduct from amortisation. That is, if we sell a player like Casemiro who is costing us £15m a year amortisation, then we can add £15m amortisation from new signings. Doesn't sound like much, but that means we can spend £75m on new signing(s) and amortisation will be back to where it was before we sold Casemiro. Losing Varane, even though we got no fee for him, also freed up £15m amortisation. OK, it's more complicated than that because we also need to consider wages. And also profits from player sales (profit = the transfer fee received minus any residual book value) can be added to the transfer kitty as well. But I do think Ineos will be trying to keep that amortisation charge where it is until we're back playing champions league football.

[@gregoryconran]

We have a huge interest debt, so we like to hold cash, because holding cash offsets the interest.. ie if we had 100m debt and had 30m in cash we only pay interest on the 70m of that debt. so constantly we are looking to spread the payments over many years, this is good in that it saves us interest, but its bad because not all clubs are happy to wait for the money and it means we often pay more than we should have needed to.. Zirkzee is a prime example, we may pay more than the release clause just to stagger the payments. The other issue is it takes LONGER to get a player off the books, its why we had to wait 5 years to sell DVB

[@markthered2007]

Turn off that dreadful funeral parlour music ffs.

[@rahulw98088]

4 biggest stumbling blocks of united transfer budget. 1) Casemiro Transfer Fees: £60m+£10m, 4 yrs contract. Yearly cost Salary: £18.2m a year(£350k/week) Amortised Fees: £15m a year Total yearly cost: £33.2m 2 years contract left. We will keep losing £33.2m for 2 more years. 2) Sancho Transfer Fees: £73m, 5 yrs contract. Yearly cost Salary: £13m a year(£250k/week) Amortised Fees: £14.6m a year Total yearly cost: £27.6m 2 years contract left. We will keep losing £27.6m for 2 more years. 3) Antony Transfer Fees: £85m, 5 yrs contract. Yearly cost. Salary: £10.4m a year(£200k/week) Amortised Fees: £17m a year Total yearly cost: £27.4m 3 years contract left. We will keep losing £27.4m for 3 more years. 4) Maguire Transfer Fees: £80m, 7 yrs contract. Yearly cost Salary: £9.8m a year(£190k/week) Amortised Fees: £11.4m a year Total yearly cost: £21.2m 1 years contract left. We will keep losing £21.2m for 1 more years.