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Financial Analysis: Manchester United have enough money to sign any of their targets

Manchester United’s start to the transfer window has been sluggish and fans are getting restless with the lack of activity shown in trying to improve the team this time around.

Lots of reports suggest United’s inability to close out the Jadon Sancho is majorly due to insufficient funds. The concern of coronavirus affecting the club’s spending hangs over the fans’ heads.

United took an age to sign previous targets Harry Maguire and Bruno Fernandes. Sympathy is already wearing thin as fans grow impatient in persuit of Sancho.

Signing Sancho or any alternative will solve the offensive puzzle for United. But, more business is needed. Ole Gunnar Soslkjaer needs reinforcements in midfield and defense too.

Alexis Sanchez’s departure to Inter Milan on a free transfer should be heralded as a masterpiece in itself, with the club saving a reported sum of £24million in salary.

The board is confident that the COVID-19 pandemic would not affect the English club’s spending plans this summer majorly. The Red Devils plan to offload a host of players to raise funds.

Manchester United are hoping to get an estimated fee of £90 million from sales. Chris Smalling is expected to fetch a price of around £20 million with Roma, Newcastle United and Inter Milan battling out for the England international.

Andreas Pereira, Jesse Lingard and Diogo Dalot are rumoured to have interest from the biggest clubs across Europe and could raise around £70m combined.

United sold Ashley Young in the winter transfer window and Marco Rojo is expected to follow the same suit. Ole Gunnar Solskjaer’s ruthlessness of not tolerating fringe players could also see Phil Jones leave the club.

The club’s chief financial officer Cliff Baty confirmed a £23m loss for the financial year 2020-21. The real effect is yet to be seen in the quarterly report as United lost on a major chunk of revenue from ticket sales, merchandise and other tourism factors. However, qualifying for the Champions League will suggest a bonus of £22m from their kit sponsor Adidas. TV rights for the Champions League will also add to give an additional financial boost.

If United manage to win the Europa League this season, they could get their hands on £7.7 as the tournament’s prize money. However, this half of this money will go to player bonuses but every million counts in these tough times.

On the flip side, United are also set to miss out on around £12m as they are unable to participate in an overseas pre-season tour.

United are commercially very strong. They even have pillow and mattress partners in a company called Mlily.

The club have £90m of cash in hand, plus an additional £150m in credit reserves [Source: United’s financial report]. This could mean United had a planned transfer budget between £90m and £240m.

Adding up all the numbers which United save from Sanchez’s departure, offloading players, TV rights, Champions League bonuses, and Europa League prize money and subtracting minor losses, United will have a surplus of £150m on their existing transfer budget.

These are layman numbers and there might be hidden costs with the same but to consider United don’t have the financial stability is ridiculous. United have the potential to go all in and buy three-four of their targets if they manage to offload fringe players and replace them with young academy graduates.

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