Manchester United have made two of their most coveted signings in recent history this summer.
Sancho has been on the United’s radar ever since he was at Manchester City. The 21 year old has established himself as one of the best playmakers across Europe and warrants his price tag of £73 million.
Varane, on the other hand, is a serial winner.
The Frenchman has won almost everything at club and international level and is eager to take up a new challenge in the Premier League.
At €40 million, United are indeed getting a bargain!
A lot has been made about Jurgen Klopp’s comments on Man United’s financials.
In his recent pre-match press conference, Klopp was asked about other club’s spending this summer.
He stated: “We all know the situation of Chelsea and City and PSG. What United are doing, I don’t know how they did it.
“We have our own way to do it. We are allowed to spend the money we earn, that we always did.”
“I’m never surprised about the financial power of Chelsea, City or United. I’ve been here long enough to know they always find a solution to these things.”
Klopp’s suggestion that United operate similarly to clubs like Chelsea, Manchester City and Paris Saint-Germain couldn’t be more wrong.
Unlike the remaining clubs who are propped by either state wealth or oligarchs, United’s healthy financial situation is due to their commercial prowess.
According to The Athletic , United’s revenue in 2019-20 was £509 million, higher than any Premier League club.
COVID-19 may have cost the club around £150 million in expected income, but the increased commercial returns certainly compensated for their loss.
United were budgeting for one marquee signing this summer but have secured more because of how the deals are structured.
Both Borussia Dortmund and Real Madrid were open to receiving the payment in instalments.
It is much easier to make a big purchase when the hit is spread out.
The exact terms remain known only to those who have seen the official documents, but if split evenly, United’s expenditure on the two players this summer amounts to slightly more than £23.5 million.
Earlier this year, an incredible report from financial blogger Swiss Ramble highlighted the massive amount taken out of the club by the Glazers over the five years leading up to 2020.
Furthermore, in the 5 years up to 2020, no owners in the Premier League have taken out more money than #MUFC’s £133m (dividends £112m, share buy back £21m). In stark contrast, some owners have put in significant funds: #EFC £348m, #AVFC £337m and #CFC £255m. pic.twitter.com/S57LsZgddt
— Swiss Ramble (@SwissRamble) June 22, 2021
Despite the owners taking out a whopping £133 million, United find themselves in a financially stable position as compared to other elite clubs like Barcelona and Real Madrid.
This is mainly due to the multiple-sponsorship model instigated by the Glazers since they took charge, which is very similar to that of Liverpool’s.
CEO Ed Woodward has successfully boosted United’s commercial value at the expense of the club’s performance on the pitch.
If Man United had competent owners willing to invest in the club, one could only imagine how successful the club would have been.