Football finance expert Kieran Maguire has explained why Manchester United must run their summer spending under Financial Fair Play (FFP) rules.
United are preparing to sign their first contract of the summer as they close to finalizing the transfer of Mason Mount, who has undergone a medical at Carrington.
The transfer of the 24-year-old will cost the Red Devils £55m plus an additional £5m in fees.
The England international's upcoming transfer could cause problems in Erik ten Hag's pursuit of a new goalkeeper and striker.
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The Glazers are said to have set a £100m net spending limit to comply with FFP regulations. Manchester United fans protest against the Glazers. Image:
Getty
As a result, the club will have to offload players or look for cheaper alternatives, having already spent a large portion of that budget on Mount.
Football finance expert Maguire has also explained why the Premier League giants need to manage their spending this summer.
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"Some people have contacted me asking why Manchester United are bringing up the FFP issue as the PL limit is a loss of £105m over 3 years. Not exactly the limit of £15m PLUS up to £90m top equity capital of the owner. The Glazer family only invested £0 million in those 3 years so the allowable loss is still £15 million," he wrote on Twitter with a series of disclosed numbers.
Maguire added:
"Manchester United's LBO model also means that the club pays interest (not exempt from the FFP) and thus further limits the spending cap. That said, the club is still likely to buy in the summer This."
In another tweet, he said:
"One area where Manchester United have a poor record is player sales, where profits are factored directly into the FFP calculations. Chelsea generated £5.3 million for every £1 million in player sales. of #MUFC over the past decade."
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United continue to search for new talent, with Andre Onana and Rasmus Hojlund linked with a move to Old Trafford.
But the club may not be able to meet the requirements to sign Onana and Hojlund, which could lead Ten Hag to look for cheaper alternatives.
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