Manchester United’s Worries About the “United Tax”
If Manchester United withdraws from the Mason Mount discussions after Chelsea rejected their third offer, which was for £55 million, it would be justified. People at Old Trafford believe that selling clubs raise player prices just based on who is calling, imposing a “United tax” on transfers.
This happened to their football director John Murtough with a young player last year who he knew had been valued at £15 million ($18.9 million). That cost nearly increased to £28 million when United called his club. Saying “no” and “moving on” are the only ways to stop it from happening.
The issue is that United has a history of becoming obsessed on their goals and ultimately giving in to pressure during the previous ten years. One example is Antony. United said early in the summer of 2022 that they would only pay Ajax a maximum of £60 million for him. They reached an agreement on a deal for £85 million eight weeks later, as the transfer deadline drew near.
Mason Mount’s Evaluation by Chelsea
It is understandable that Chelsea believes they can demand £65 million for Mount, despite the player with one year left on his contract and wanting to join United, when negotiations start to resemble an episode of the UK quiz show Ant & Dec’s Limitless Win, where contestants answer inquiries to climb an infinite money ladder.
When Leicester City waited for United, then under Ed Woodward’s leadership, to match their £80 million asking price for Harry Maguire—a record for a defender—four years ago, they struck it rich in a similar way.
If there is a “United tax,” it may exist because clubs think a portion of the money earned at Old Trafford should be distributed to them.
United’s projection for full-year revenue jumped to a record level, between £630million and £640million, in its third-quarter results, which were released on Tuesday. Due to an increase in matchday revenue and sponsorship, cash and equivalents were worth £73.7 million as of March 31 compared to £31 million on December 31. By June 30, the remaining amount on the revolving credit facility, which is essentially a business credit card, is expected to be lowered to £40 million, making £260 million accessible.
Utilising credit to pay for fresh recruits when the club makes so much cash is inefficient when interest costs are taken into account, but Premier League opponents won’t give that much thought since they only see the large funds at United’s disposal.
With reference to Mateo Kovacic’s Transfer
Despite the good news about revenue, club employees said they will only pay Mount £55 million and will stop communicating if Chelsea do not relocate. However, discussions are currently going on to see whether the payment structure can be changed to reach an agreement. They have seen Chelsea transfer Mateo Kovacic to Manchester City for £30 million (£25 million + £5 million in add-ons) this week, and they wonder why Mount, a fellow midfielder, is valued so differently considering that City is supported by Abu Dhabi’s state money.
Kovacic, though, is 29 years old and was set to become a free agent the next year. Mount, 24, graduated from the Chelsea academy and has been a fan favourite since he was just six years old. According to sources, Chelsea wants to get a decent price for him to quell any fan protests over a transfer. There is also the possibility that Chelsea, as they did with Raheem Sterling last summer, may wish to purchase players from City in the future.
Financial restrictions and FFP rules
United claims that financial fair play (FFP) regulations restrict their ability to spend money after the team incurred losses of £115.5 million for the 2021–22 season as a result of playing games behind closed doors during the epidemic. A re-evaluation is necessary since United also overspent its signing budget by more than £100 million last summer.
Only time and more accounting will be able to determine whether FFP is a cover for the Glazer family’s overall reluctance to contribute money to the club they still control. In the past, United has spent less on new players when they have already qualified for the Champions League than when they need to do so.
You may be aware that there is also a takeover proposal under consideration. Although United denies that this uncertainty is having an impact on transfers this summer, numerous agencies interested in working with the team claim that just one significant deal can be made until the situation is resolved.
In any case, United must negotiate advantageous terms if it is to remain viable in the long run. Only when they are perceived as having the guts to leave the table will their negotiating red lines be taken seriously in the market.
The Transfer of Jadon Sancho as an Exception
Jadon Sancho is the lone transaction that sticks out as an instance of United signing a player for less than the sellers had expected. In 2020, Borussia Dortmund desired £100 million. Later on, United acquired him for £73 million. That seemed like a successful bargain at the moment, regardless of his significance in the future.
United has put a value on Mount; as a result, they should honour that value by leaving and exploring alternative choices.
Understanding the Strategies of Manchester City and Liverpool
For several seasons, Manchester City has been wise in this regard, refusing the rising cost of Maguire in 2019. They let Chelsea have Brighton & Hove Albion’s Marc Cucurella last summer and instead bought fellow left-back Sergio Gomez from Anderlecht for a sixth of the price.
Liverpool made it clear in April that they no longer saw the financial rationale in a contract with Dortmund by walking the walk with Jude Bellingham, another England midfielder. By June 14, Alexis Mac Allister had been acquired by Liverpool for around a third of the price of Bellingham, who had signed a contract with Real Madrid for a fee of £113.5 million.
Recall that when discussions to sign Caicedo late in 2020 began, United were unable or unwilling to separate his representation status. Instead, Brighton paid Independiente del Valle in his native country £4.5 million for him during that season’s winter transfer window. When the two teams met at Old Trafford on the first weekend of the previous season, United staff members inquired of their Brighton counterparts about Caicedo’s progress, giving the impression they felt a chance had been lost.
Looking for Potential Lower-Profile Players
Even if manager Erik ten Hag mainly expects recruits that have immediate effect and have the power of personality to play at Old Trafford, United must have the insight and foresight to choose lower-profile players with the necessary talent.
Adrien Rabiot did meet the Ten Hag requirements, and United contacted the France midfielder at the beginning of this week as his contract with Juventus was due to expire. But by Tuesday, he had committed to Juventus for a full year, eliminating one potential replacement for Mount. It was an odd story that started last August when Murtough travelled to Turin to meet with Veronique Rabiot, the player’s mother. After their meeting, Murtough knew their contract demands were too high and was unsure about the player’s reputedly reserved personality.
United has no such reservations regarding Mount, and they are aware of the necessary contract. Whether they can come to an agreement with Chelsea, though, will reflect the club’s long-term negotiation power.
