Perhaps no other deal sums up Ineos’ smart thinking than Matthijs de Ligt’s transfer from Bayern Munich.
Yes, there are some reservations about this being his third club in five years, or his perceived injury record or wages, but, ultimately, United are getting a world-class centre-back for €45 million plus €5 million in add-ons.
It still puts him amongst Man United’s most expensive defenders of all time, but a key detail in this deal is being missed by many, picked up by finance expert Adam Williams to explain how smart Ineos have been with it.
Matthijs de Ligt Man United transfer- Devil in the details
On first glance, it might seem like a fairly routine transfer, especially as the second half of it, that of Noussair Mazraoui, was contingent on United selling Aaron Wan-Bissaka.
That clearly shows the precarious financial situation United currently find themselves in, a legacy of Glazers’ poor cost control.
Ineos can’t do anything about the mess they inherited and change the past. However, they’re managing to navigate this situation with some incredibly smart thinking in transfer negotiations this summer.
Adam Williams explains that United paying De Ligt’s fee over three years instead of all in a lump sum upfront like in the case of, say, Harry Maguire, will give United some much-needed breathing space.
He said: “From a cash point of view, paying in installments does give you some breathing space.
“United have exhibited incredibly poor cost control under the Glazers’ full ownership, so I think spreading De Ligt’s fee over several years will give them some wiggle room while Ratcliffe tries to get things under control again.
“In the next few years, I think the plan is to move to more of an incentivised model with contracts as well as increase the revenue base through new commercial initiatives. De Ligt’s installments might be proportionately easier to offset if the new regime has some success there.”
Williams also added that how the fee is structured won’t do much for Profit and Sustainability Rules, but that situation is already improving due to United managing to get an albatross year off their neck.
He said: “From a PSR point of view, it doesn’t make any difference in terms of how the deal is structured.
“That is because the total fee for De Ligt will be amortised over five years in any case, so the impact of his £42m fee on this year’s calculation will be £8.4m for the next four years.
“United flirted with PSR issues in 2023-24 but, thanks in large part to their allowable losses for Covid and costs associated with the Ratcliffe part-takeover, appear to have crept in under the limit.
“Incidentally, I think PSR will be much less of an issue for the current season because the £115m loss they made in 2021-22 is now no longer part of the three-year calculation.”
Ineos setting Man United up for the future
It is clear from this breakdown that Sir Jim Ratcliffe and Co have banked on their ability to turn the ship around at United, hence breaking down transfer fees in installments to be paid when the club will hopefully be in a much healthier state financially.
Add to that their concerted effort toward buying younger players and establishing a core of the squad, and the Ineos long-term vision becomes clear.
The rebuild is already off to an encouraging start with this window but as time passes by and the remnants of Glazers’ bad decision fade away, be it in terms of expiring contracts or bad financials, it should only accelerate.
The horrid financial year due to Covid is already a part of an expired cycle, as explained above, and some problematic contracts at the club last season, like Raphael Varane and Anthony Martial, are off the books.
Add to it Glazers finally stopping themselves from taking dividends out of the club, and the fans can look forward to a more thriving football club, on and off the field. The deal for Matthijs de Ligt exemplifies this
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