Manchester United’s troubles with Financial Fair Play have finally come to a head with UEFA taking action against the club.
Simon Stone of BBC reports that the club has been fined €300,000 by the governing body for a “minor” FFP breach.
He reports that United are “disappointed” with the decision and that it comes as a result of the modification “in the way UEFA treated losses” during COVID.
However, the club went on to support the “enforcement of rules to promote FFP” and “sustainability across domestic and European football”.
United were one of the biggest affected clubs during COVID as a large part of the club’s revenue comes from matchday activities.
UEFA had relaxed the FFP guidelines for the financial years affected by COVID and were looking to bring them back gradually.
The bosses at Old Trafford were already preaching financial prudence going into the summer transfer window.
With outstanding payments of more than £200 million on previous transfers, and a rising debt touching £1 billion, all without any investment by the Glazers, the upper limit for losses that could be excused under FFP was just £15 million.
The People’s Person recently did a deep dive into the issue, explaining why the FPP limit is more of Glazers’ “nonsense”, which is brought about by their lack of investment in the club.
Combined with a scattergun transfer strategy that led to millions being wasted on talent no longer at the club, or looking to be sold, United have brought the problem upon themselves.
Under FFP, clubs can account for losses of £105 million over a three period but £90 million in that comes from owner investment, which, in United’s case, is zero.
Last summer, United spent close to £250 million, overshooting their transfer budget due to a late dash in the transfer market brought on by panic due to losses in the Premier League.
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