Report: United Continue Big Spending Despite Transfer Debt Warnings | OneFootball

Manchester United’s Transfer Strategy: Spending Big on Sesko Despite Financial Pressures

United’s Ambitious Summer Window

Despite a dismal domestic season and no European football on the horizon, Manchester United remain a dominant presence in the transfer market. As Chris Weatherspoon of The Athletic reports, United are close to securing Benjamin Sesko from RB Leipzig, having already spent £127.5 million on Matheus Cunha and Bryan Mbeumo, in the report Weatherspoon takes a deep dive look at the finances of the club.

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Weatherspoon notes that United bid €75 million plus €10 million in add-ons for Sesko, who is “keen to move to Manchester United.” This aggressive transfer stance seems contradictory for a club reportedly needing financial restraint, especially with staff redundancies and an ownership that admitted the club was nearly “bust at Christmas.”

Financial Firepower Despite Constraints

Weatherspoon reveals that Manchester United’s ability to spend lies in clever accounting and strategic borrowing. Cunha’s signing was confirmed before the June 30 fiscal year-end, allowing it to fall into the 2024-25 accounts. The club spent a record £343.5m last season, with much of that expensed over players’ contract lengths.

Furthermore, the club’s PSR (Profit and Sustainability Rules) concerns are less severe than perceived. Their PSR is calculated under Red Football Limited, which excludes some high-level PLC costs. The Athletic estimates United could lose up to £141 million in 2024-25 without breaching PSR rules.

Transfer Debt and Cash Flow Management

Yet, Weatherspoon cautions that United’s net transfer debt has ballooned from under £100m in 2021 to £308.9m by March 2025. “The signings of Cunha and Mbeumo have only added to the sum,” with instalments helping in the short term but compounding future obligations.

Their cash balance stood at £73.2m in March, bolstered by £238.5m from minority owner Jim Ratcliffe. United also cleared £50m from their £300m revolving credit facility, allowing up to £140m in additional borrowing.

Selling to Sustain Spending

Weatherspoon points out United’s need to improve at selling players, especially given their “ballooning transfer debt.” Sales of fringe players and those with high wages, such as Marcus Rashford and potentially Jadon Sancho, could ease financial strain. Interestingly, United are open to offers for Rasmus Højlund, with an estimated book value of £43m, despite his desire to stay.

As Weatherspoon concludes, “Cash needs to be rather more carefully managed than was the case in the past at Old Trafford, but… there are avenues available to them.”

Our View – EPL Index Analysis

From a Manchester United fan’s perspective, Chris Weatherspoon’s report paints a picture of a club still finding its balance between ambition and financial responsibility. Supporters will be heartened by the club’s continued ability to attract top-tier talent like Benjamin Sesko, especially after such a poor domestic campaign.

However, the report underscores a recurring theme: mismanagement from previous regimes has left United financially bloated and strategically hampered. The fact that United are still paying off past transfer deals while eyeing big names is emblematic of a club stuck between rebuilding and chasing immediate success.

Fans may view the potential sale of Rasmus Højlund as particularly concerning. The young striker was brought in with a long-term vision, and offloading him so soon feels like short-termism. Likewise, concerns remain about the club’s ability to negotiate favourable instalment plans and balance the wage bill.

Ultimately, the message is clear: United can spend, but not without consequences. Ratcliffe’s investment offers breathing room, but smarter sales and financial prudence must follow if United are to sustain both on-field success and off-field stability. This summer could be a defining one in shaping United’s financial future.