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350 million euros in unpaid transfers - this major English club is on the verge of bankruptcy

This giant of English football has enormous debts, and still has to pay clubs for transfers dating back several years.

English clubs have the habit of spending almost lavishly on the market. transfers, thanks to revenues that no other championship is capable of generating. But one of the Premier League's biggest clubs is riddled with odds and ends. debts, in particular because of his expensive purchases during the last transfer windows, which he has still not finished paying. Despite record revenues amounting to almost 750 million euros for the 2022-2023 season, the club has again recorded a deficit, and continues to grow. go into debt to maintain your lifestyle and remain competitive at the highest level.

While negotiations for the sale of Manchester United are still ongoing, the club has published its accounts for the 2022-2023 season, which still show significant losses and above all a debt which continues to grow. In addition to the astronomical sum of 888 million euros in bank loans repay, the Red Devils still owed no less than 365.22 million euros this summer. different clubs for player transfers. Paying transfer amounts over several years is obviously a common practice, but acquisitions from previous years therefore continue to be paid. weigh on current finances. And the Mancunian club is no less spendy despite the fact that his financial setbacks: the arrivals of André Onana, Mason Mount, Rasmus Hojlund and Sofyan Amrabat cost 200 million euros this summer, after the 230 million already there. spent last season for Antony, Casemiro, Lisandro Martinez and Tyrell Malacia.

The leaders, at the time of the Covid-19 crisis, contracted; a revolving credit (renewable credit) from the Bank of America Securities, to provide liquidity and finance purchases. The recruitments of Casemiro and Antony, for example, were difficult. financed by this loan short term. This debt strategy allows the club's owners, the highly criticized Glazers family, to continue to grow. recruit abroad arm circumference despite sales that yield little. And the debt begins to rise. weigh on the annual accounts of the club, which reimburses increasingly high interest: 36 million euros for last season.

Fortunately, Manchester United has also been able to scale back, particularly in terms of the salaries of its players. While the payroll reached 440 million euros in 2021-2022, it was reduced. reduced by almost 15% in 2022-2023, amounting to 380 million euros. These savings were notably allowed by the free departures of a few players with impressive salaries: Paul Pogba, Edinson Cavani, Juan Mata, Nemanja Matic and Jesse Lingard. Thanks to this creaming, and to a significant increase in commercial income, the club's deficit increased of 132 million euros in 2021-2022 33 million in 2022-2023.

To achieve balance, and become an economically viable football club, Mancunian leaders will have to learn to adapt. sell as generously as they buy: the club cashed in only 110 million euros thanks to player sales over the last 3 years, for nearly 600 million euros in purchases over the same period. Will the announced arrival of Jim Ratcliffe, who is expected to buy 25% of Manchester United's shares for around 1.4 billion euros, help? correct management that sometimes borders on the irrational?

Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116