Pranav Nair
According to the Daily Mail, Manchester United still owe an incredible £169.3 million in unpaid transfer fee due, with a financial crisis looming. This accounts for roughly 10.5 percent of the total dues owed by the 20 Premier League sides.
The figures are according to Kieran Maguire, a university professor on football finance. United’s dues are more than double the amount owed by Manchester City in second spot (h/t Daily Mail).
With clubs overreliant on TV revenue, the suspension of the season has the looks of an impending crisis (h/t Daily Mail).
The deals made for Aaron Wan Bissaka, Bruno Fernandes and Harry Maguire were big-money signings that could come to haunt us in the coming months.
Our dues are more than twice of Arsenal and four times more than what Liverpool owe (h/t Daily Mail). The seriousness of the issue is apparent when one considers the revenue lost due to the coronavirus pandemic.
According to the Daily Mail, United stand to lose around £116.4million in such a scenario. This is taking into account the losses from TV, matchday and retail revenue.
With no idea as to when the situation will normalize, clubs face an uncertain future. With revenue streams nonoperational, the stress on clubs to pay salaries will be heavy, especially on the clubs that are currently making a loss.
United have also decided against making use of the government\s furlough scheme to pay the staff in spite of the looming difficulties. The club would continue to pay more than 900 employees as normal. (h/t Daily Mail)
It is admirable that we stick to our ethos in spite of our rivals deciding to make use of the facility.
United have also extended goodwill payments for non-matchday casual workers until June 1. This will help around 950 staff.
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We have no idea yet as to the realistic implications the current situation will have on the future.
It remains to be seen how we cope with the difficulties if it comes to be. No club is big enough to fail, but then we are smart enough not to either.
