Manchester United sent FFP warning as ‘biggest red flag’ in Premier League named

Manchester United, Chelsea and Liverpool could all be in trouble over potential Financial Fair Play (FFP) breaches, according to a football finance expert.

Rob Wilson has identified Chelsea as the “biggest red flag” among the Premier League’s elite, with the club facing charges for breaching profit and sustainability (PSR) rules. Since taking over from Todd Boehly in 2022, the Blues have spent more than £1bn on players, while United have spent around £400m in the same time.

Despite their massive investment failing to translate into success on the pitch, Chelsea now face the risk of breaching FFP regulations. Recent reports suggest the club made a pre-tax loss of £90.1m for the year ending 30 June 2023, which follows a £121.4m loss reported in the previous financial year.

Boehly, who has been keen to reduce the wage bill by bringing in younger players, may have to offload significant assets this summer to stay within his £105m PSR cap for losses over three years. Chelsea could face a points deduction for years to come if they don’t comply, although United aren’t clear.

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Speaking to OLBG (via the Mirror ), Wilson noted: “Chelsea is the biggest red flag in the division without a doubt. In the latest set of calculations, they will need to sell over £125m worth of talent by June 30 to be compliant this summer.”

FFP pundit Stefan Borson earlier this month suggested Chelsea were trying to ease their financial stress by selling their Cobham training ground, as reported by the Daily Express. Like the west Londoners, United have struggled in recent years.

Wilson also named four other clubs in the Premier League’s top eight clubs as potential concerns, adding: “Chelsea are up front as the biggest red flags and then you start going down a bunch of other teams. In that group are United, Aston Villa. , with Newcastle and Liverpool sneaking in there.”

He continued: “Liverpool have spent significantly on wages, then of course you have Manchester City in and around it. Anyone who has ambitions for European competition has probably pushed the boundaries in the last couple of years, which is why we’ve had a quiet window in January.”

Respected football finance blog The Swiss Ramble has crunched the numbers for the expected new FFP system to be introduced for next season, using the latest financial data available from 2022/23. Their analysis indicated that Liverpool would have just cleared the new spending cap based on those figures, which link transfer and wage expenditure to a club’s income.

United were also on the edge based on that ratio, with a margin of 3%. However, the Reds recently announced a pre-tax loss of £5.6m in the first six months of the season, allaying concerns over compliance with FFP rules, according to The Athletic.

The second-quarter results cover the period to the end of December, with United initially under fire after posting a pre-tax loss of £32.8m for the first quarter of the 2023/24 financial year.

Wilson’s comments come at a time of growing concern among Premier League clubs about PSR breaches. This is the result of the clubs this season feeling the full force of the league’s unprecedented restrictions.

Liverpool’s bitter rivals Everton were handed a 10-point deduction for infringements in the 2021/22 season in November 2023, which was reduced to six points after a successful appeal. They were hit with another two-point deduction in April, making a total of eight docked.

Former relegation rivals Nottingham Forest were also handed a four-point deduction this season for exceeding their 2022/23 losses by £34.5m. Forest sought a reduction in the points penalty, arguing that Brennan Johnson’s £47.5m sale to Tottenham two months after the end of the 2023 financial year should have been taken into account – a defense which was rejected by an independent appeal board.

In February 2023, Manchester City were accused of breaching 115 PSR rules between 2009 and 2018. Each of these 115 separate charges will be brought before an independent panel, with the trial expected to begin around October.