Man Utd dealt HUGE financial blow over summer transfer plans

Paul Macdonald

Updated: 13 Feb 2025 17:12 GMT
3 min read

Manchester United have been dealt a significant blow after Premier League clubs voted to retain its Profit and Sustainability Regulations (PSR) for another season.

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EPL clubs had been operating a shadow system known as 'Squad Cost Control Ratio' across 2024/25, with a view to implementing its new rules fully from 2025/26. PSR is still in place this year.

However, a vote between the 20 clubs on Thursday saw teams agree to operate under current PSR rules for another season despite previous suggestions that a new system would be in place for the next campaign.

Manchester City’s two outstanding Associated Party Transaction (ATP) cases against the league, plus a potential legal challenge from the Professional Footballers Association (PFA), meant that the clubs chose to defer the new rules until these cases can be settled.

This is particularly grave news for Manchester United, who have amassed £300m of losses across the past three seasons, and now are in real danger of failing PSR without severe financial changes.

Owner Jim Ratcliffe has already stated this week that deeper cuts were required despite making further redundancies of hundreds of staff at Old Trafford, with the British billionaire even suggesting that the club was in danger of ‘going bust’.

PSR regulations allow losses of £105m over three years, meaning United are the club likely at most serious risk of facing penalties from the league, which includes point deductions.

© IMAGO - Sir Jim Ratcliffe is Britain's richest man.

Premier League teams likely to face another June deadline scramble

Another side on the precipice are Aston Villa, who sold Jhon Duran to Saudi Arabia at the end of the window, a deal that was seen as a necessity to ensure Villa were broadly in line with PSR - but they will still need to be careful with any further spending.

The Squad Cost Control Ratio was due to set a maximum percentage of revenue that clubs could spend on transfer fees, wages and agents fees, which United perhaps would have had more chance of meeting without drastic action.

But the league’s decision may force more clubs into action before the end of the 24/25 season at the end of June, knowing that there is another season of PSR restrictions to follow.

Last summer saw teams such as Newcastle forced to sell key youngsters for below market value in order to balance their books, while the likes of Chelsea and Villa made creative transfers between one another to ensure they did not commit any violations.