Stefan Borson drops strong Man United transfer claim after '£200m' reveal

Manchester United are likely to be “cautious” about their spending in the January transfer window as their amortisation costs have risen to around £200million.

That is the view of former Man City financial adviser Stefan Borson, who exclusively told Football Insider Man United’s profit and sustainability (PSR) situation is unlikely to block them from doing any significant deals in the mid-season window.

United were believed to be close to the PSR limit last season, with Premier League clubs only permitted to make £105million of losses over a rolling three-year period.

But the Manchester giants are expected to avoid a potential spending breach after they were allowed to add back certain expectational costs.

Borson previously told Football Insider United will have spent up to £37.5million on sacking Erik ten Hag and appointing Ruben Amorim over the past couple of weeks.

Football Insider revealed on 6 November the Premier League side could be forced to focus on loan deals in January due to the costs associated with the recent managerial change at Old Trafford.

Man United to be cautious in January after heavy spending

Borson expects United to approach the January window with caution following their heavy spending under Ten Hag.

He told Football Insider: “You don’t need that much space to be able to do a deal in January, almost for any player.

“For the sake of discussion, if you think about signing a £60million player on a five-year contract, that would have a £12million-a-year amortisation impact, plus the wages.

“But if it’s only for six months of a financial year and you buy them on 1 January, you are only going to have six months of his costs in the financial year that runs until 30 June.

“All of a sudden, the £12million of amortisation costs becomes £6million and the wages are only half of his annual wage, so it probably wouldn’t cost much more on the profit and loss for a £60million player than £10million all in during this current financial year.

“It’s just not that significant, especially in the context of being able to potentially sell a young player before 30 June to sort of balance the books.

“I don’t think PSR in itself will be the thing that blocks United doing a significant deal.

“I just think it’s more likely that given the spending they have had over the recent period and Amorim will only just have landed, they will just be a little bit more cautious about the spending.

“Despite the costs of a £60million signing only being £10million in the current financial year, you are giving yourself the cost going forward.

“You are giving yourself the full £12million-a-year amortisation cost in every subsequent financial year, which is significant, especially when United now are probably running currently at £200million amortisation costs per annum.

“You are also giving yourself a very hefty wage commitment as well over the next five years.”

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The post Stefan Borson drops strong Man United transfer claim after '£200m' reveal appeared first on Football Insider.