Manchester United ended the transfer window spending around £216m. This figure is much higher than the £120m reported to be the funds that new manager Erik ten Hag was originally being backed with. This begs the questions: what state are United’s finances in and where are these additional funds coming from?
Certainly the original transfer budget was exceeded by close to £100m, yet United only sold three first-team players, James Garner for around £15m, Andreas Pereira for around £8.5m and Tahith Chong for a fee believed to be around. £1.5 million. These sales alone don’t recover much in terms of value, although Cavani, Pogba, Matic and Lingard have saved money by being out of the wage bill, however that money won’t be immediately available for additional transfer funds.
So how have United been able to overcome the reported transfer kitty? Have the Glazers finally decided to reach into one of their many sizable pockets and invest their own cash in the club?
Twitter user Toe in the Water has taken a closer look at the books using figures from finance blogger Swiss Ramble and other information sites. A big highlight of his findings is the use of a £100m overdraft facility which United appear to have taken advantage of.
UNITED. Including Antony, over £200m has been spent on the window. Only 8 million pounds were recovered (Pereira). But how was it financed? United have been losing a lot of money in recent years ???????? pic.twitter.com/Arnxi3dJqw
— Toe In The Water (@ToeInTheWater1) August 28, 2022
Now a club going into overdraft is certainly not unheard of, in fact it’s quite common, for example Newcastle recently secured a £100m overdraft facility despite having mega-rich owners. The biggest difference, however, is that United appear to be using this overdraft facility to maintain operations and possibly transfers, while Newcastle’s overdraft remains untouched.
This suggests cash flow problems within the club, something the Swiss Ramble figures also highlight. This is a marked change from a few years ago, when the club seemed to have plenty of cash. Obviously, the pandemic has hit the club hard in this regard, like most clubs, with United being the club that loses the most due to the lack of income from the matchday.
Another way that United have managed to finance this transfer window comes down to transfer financing with other clubs, this essentially means paying a transfer over several years rather than a lump sum in cash. This usually leads to a higher overall cost, however, through clever accounting using player ‘amortization’ (basically writing off a player’s cost evenly after each contract year) and without paying a lump sum. sizeable global, it becomes a way to finance a splurge without losing immediate funds from the war chest.
The problem with this, according to Toe In The Water, is that UEFA’s Financial Fair Play (FFP) considers this transfer financing as part of a club’s debt and is therefore included in FFP reports. This wouldn’t be a big deal if The Glazers hadn’t saddled the club with debt that the club itself has paid interest for over the owners’ reign.
The big problem with United at the moment is the apparent reluctance of the owners to spend their own money on the club, even though they are still reaping dividends. UEFA and Premier League FFP regulations now limit what owners can put from their own wallets in terms of transfer funds, however Glazers within FFP can fund things like infrastructure and youth teams, which it would surely free up cash for other businesses. as transfers.
The Glazers have been looking at outside investment recently with a view to spending money on Old Trafford, even though they reportedly have a net worth of $3.5bn, again the reluctance to actually finance any of this themselves, while still drawing dividends is frankly disgusting. .
While United fans may not begrudge the much-needed transfer expense, even though it seems like a panic move to quell recent protests (which it most definitely won’t), when current finances seem so tight, one can only assume that the immediate future of any big-spending transfer window almost hinges on Erik ten Hag securing Champions League qualification and getting United back to the top table in world football, or the Glazers finally selling a owner who knows how to run the club the right way. 
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