Lewis Butcher

Is selling Scott McTominay important for MUFC's FFP compliance? Homegrown player so 100% profit? 🔺Actually, no (!). 😱 How is this possible, nothing else has been talked about the last years? Look at what Chelsea is doing? 🔺This is why: UEFA adopted new financial sustainability regulations in April 2022. To get a clean break from the Covid years, the clubs were given one year to adopt to one of the rules and the other rule was implemented gradually over time. In relation to the PL's FFP rule -- that was the only applicable FFP rule last summer -- the earnings of a club is of great importance. Since the cost of signing is amortized over 5 years (normally), and the profit of a transfer goes on the books instantly, this rule means that you -- short term -- always can buy players for more money than you sell players for. If you sign a 100m player to a 5 year 200k a week contract, the yearly cost is 100/5 + 200k*52 = 30.4m. So if you sold a homegrown player in 2023 for 30m, you could buy a player for 100m (but you would need to sell a player for 30m every year for 5 years to continue to not breach ). 🔺But with UEFA's new Squad Cost Rule -- that sets out that the cost of a club's squad over a 12 month period only could be 90% of the revenue per 31 December 2023, 80% per 31 December 2024 and 70% per 31 December 2025 and all subsequent years -- the impact of player sales is adjusted. After an implementation period -- the income from player sales is only counted as the average over the previous 3 year period. So going forward, the sale of a homegrown 100m player, "only" increases your ability to spend with 100/3 * 70%, i.e. app. 23.3m per year for 3 years. If you sell players for 100m every year, like Chelsea and co probably plan to do -- selling players and especially homegrown players will of course still significantly impact how much a club can spend. 🔺But for MUFC -- the impact is actually fairly marginal. The first rule MUFC would breach if spending is increased if UEFA's Squad Cost Rule. If MUFC gets £25m for McT, we reduce the nominator with £2.5m and increase the denominator with 25/3 = £8.3m. All in all, it increases MUFC's ability to spend with app. £30m. While if we sold Jadon Sancho for a 6 pack Carlsberg, (without undertaking to pay part of his wage) it increases the club's ability to spend with around £70m... So granting the sale of homegrown players a monumental value -- is a thing of the past.

Refs from same PGMOL Refs from the same League Same team in the video If I say anything I will be in big trouble

“I don’t need one” Nobody does, until the ball comes at your face. Please wear a mask!!