UEFA’s Club Financial Control Body has fined Manchester United €300,000 (£256,744) for a “minor breakeven deficit” under its Financial Fair Play rules.
The CFCB found United did not meet their target to approach breakeven on football-related business, including player transfers, wages and social taxes.
A United statement read: “While disappointed by the outcome, Manchester United accepts this fine for what UEFA acknowledges to be a minor technical breach of its previous Financial Fair Play rules.
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“This reflected a change in the way that UEFA adjusted for Covid-19 losses during the 2022 reporting period, which allowed us to recognise only €15m (£12.8m) of the €281m (£240.5m) of revenues lost due to the pandemic within the FFP calculation.
“Post-pandemic, the clubs’ revenues have recovered strongly and are forecast to reach a record level in the current financial year.
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“The club continues to support the enforcement of rules to promote financial fair play and sustainability across domestic and European football.”
United are understood to be disappointed with what they see as UEFA’s lack of flexibility over accounting for losses during Covid-impacted seasons but accept they did commit the breach.
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It is also understood the situation will have no impact on the club’s ability to add to Erik ten Hag’s squad during the summer transfer window.
United’s only signing this summer has been Mason Mount, who arrived from Chelsea for £60m.
Barcelona were also punished by the CFCB for wrongly reporting profits from “disposal of intangible assets” that should not have been accounted for as income according to FFP rules, and were handed a €500,000 (£427,840) fine.
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AC Milan, Roma, Inter Milan and Paris Saint-Germain will also continue to be monitored by the CFCB as part of their settlement regime, although all four of those clubs fulfilled their targets for the financial year 2022.
UEFA has updated the FFP rules that were approved in 2009 with a new monitoring system that prioritises financial sustainability for clubs and has moved away from setting competitive balance on the field as an achievable target.
‘Fine is essentially a slap on the wrist’
Sky Sports News chief reporter Kaveh Solhekol:
“The Financial Fair Play rules are pretty complicated. UEFA are actually changing the rules going forward. But basically the rules were that, over a three-year period, clubs were only allowed to lose €30m (£25.7m).
“But because of Covid and the impact that had on club finances, those rules were relaxed. For instance, Manchester United have said they lost revenue totalling £281m because of the effect of Covid.
“Because of the way UEFA treated Covid issues, they committed a very minor breach of FFP rules. It’s effectively a slap on the wrist.
“As far as United are concerned, obviously they’ve emerged from the Covid period, their finances are back on track, they’re in the Champions League next season.
“They have complied with all the Premier League’s Financial Fair Play rules. Those are calculated in a slightly different way to UEFA’s.
“A lot of fans will be thinking, ‘is this going to affect our transfer budget during this window?’ These are historic issues. It’s not going to affect the budget at all.
“United have around £120m to spend during this window. Obviously they’ve already spent some of that on Mason Mount. That could go up, depending on selling players and how much they bring in.
“But I don’t think it’s a major issue. As far as United are concerned, it’s a minor breach, and as far as UEFA are concerned, it’s a minor breach.
“However, it is incredible that Manchester United are being fined for FFP breaches considering they are one of the richest clubs in the world and all their revenues are self-generated.
“FFP rules are designed to make sure clubs only spend what they earn and to stop owners putting too much money in.
“The Glazers have never put any money into United and their 2005 leveraged buyout has cost the club almost £2bn. The £906m in interest charges on debts loaded onto the club have made FFP compliance more challenging.
“Under UEFA FFP rules, the first €25m (£21.4m) of equity investment by owners can top up FFP but the Glazers have not put anything in.”
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