How much more can Manchester United spend? Enough to buy Baleba! The reason behind the claim of impending bankruptcy despite spending £200 million is revealed.

Following the worst season ranking in fifty years, Manchester United found themselves out of European competitions, with owner Sir Jim Ratcliffe claiming the club was nearing bankruptcy. Given this situation, people anticipated a more subdued transfer period for the Red Devils this summer. Unexpectedly, after investing £133.5 million to acquire Cunha and Mbeumo, the signing of Sheshko for £74 million occurred. Additionally, rumors about signing the £100 million man Baleba have intensified.

The fact that Manchester United can invest such substantial funds in transfers this summer may confuse some. After all, the club hasn't sold anyone this summer; Rashford, although leaving, was loaned out to Barcelona for free for a season. Yet, even with tightening financial conditions, Manchester United is still considering more signings, with goalkeeper and midfield reinforcements also seen as possibilities.

This is primarily because Manchester United's PSR profitability and sustainability rules in the Premier League account for the finances of "Red Football Limited" registered in the UK (Cayman Islands), rather than its PLC in New York. This means some expenditures are not included in the calculations.

The Times reported that during the recent three-year PSR cycle, Manchester United PLC's pre-tax losses totaled £311.9 million, while Red Football reported "only" £200.6 million.

Moreover, Cunha's signing was officially announced on June 30, meaning that the fee for his transfer—£62.5 million plus other expenses, totaling £71.3 million—will be accounted for in the 2024/25 season.

Adding to last season's expenditure of £272.1 million, Manchester United's total spending reached £343.5 million, marking the third-highest single-season expenditure in the history of English football. However, Liverpool may soon surpass this, dropping Manchester United to fourth place.

This still represents the highest single-season expenditure in Manchester United's history. Over the past three seasons, the club has consistently invested over £200 million annually in new player acquisitions. Meanwhile, the club's performance in player sales has been poor, with last season generating £66.3 million, the second-highest amount in player sales for Manchester United in the past decade. This resulted in a record net expenditure of £277 million last season.

Ratcliffe's claim last year that Manchester United was on the brink of bankruptcy was clearly alarmist, intended to provide a convenient excuse for his layoffs. This move may seem cold-hearted, but it was effective; after laying off over 450 employees last year, the club saved several million pounds.

In the most recent quarter, Manchester United also significantly reduced wage expenditures by 21%, bringing them down to £71.2 million. Therefore, the so-called financial deficit issue for Manchester United is not as severe as previously imagined.

Theoretically, Manchester United could face a loss of £141 million in the 2024/25 season, but in practice, the club's financial situation is manageable, remaining within the regulatory limit of not exceeding £105 million over three years.

Without European competition this season, Adidas's sponsorship fees will also need to be reduced. However, despite not selling players, the club has profited from the second transfer of youth players who played for other teams, with Elanga, Alvaro Fernandez Carreras, and Maxi Oyedele bringing in £20 million, and Sancho's return from Chelsea providing £5 million in compensation.

Of course, if Manchester United fails to sell Sancho, the aforementioned £5 million would be offset in the financial report, as the club would have to pay his wages for a season. Thus, the Red Devils are very eager to sell the 25-year-old English winger, even if the price isn't ideal.

Financial reports indicate that as of the end of March, Manchester United's cash balance stood at £73.2 million. The club also has a £300 million RCF borrowing limit, of which only £160 million has been utilized. Therefore, Manchester United has sufficient funds to cover Sheshko's transfer fee.

Moreover, the club can generate substantial income by selling players like Garnacho and Antony, improving their financial data. At the same time, should Sheshko join, Hojlund may also be sold; Manchester United has only priced him at £30 million, which would result in a £13 million loss in the PSR but simultaneously bring in more cash flow.

The maximum funds available for Manchester United to use this summer stand at £230 million. So far, £145 million has been spent on Mbeumo and Sheshko. If they were to forcefully acquire Brighton midfielder Carlos Baleba, it is possible, but such an action carries risks that would nearly deplete the club's cash reserves.

In such a case, the transfer department would have to recoup funds by selling players like Sancho, Garnacho, Antony, and Hojlund. Based on estimated values of £15 million for Sancho, £40 million for Garnacho, and £30 million each for Antony and Hojlund, this could bring in £115 million.