Manchester United players may have banked £75million in bonuses by the time the season is over.
It has been a tough campaign for Erik ten Hag’s side, whose 8th-place finish was their worst in Premier League history.
However, United could end their season on a high if they secure an unlikely victory over rivals Man City in the FA Cup final this weekend.
Besides the silverware on offer, there is a clear incentive for United’s players ahead of the Wembley showdown: financial bonuses.
And with Sir Jim Ratcliffe looking to implement a new wage structure at Old Trafford which prioritises bonuses over huge base wages, the new part-owner will be monitoring the existing structure closely.
How much will United pay out in bonuses this season?
United’s accounts for 2022-23, the latest season for which figures are publicly available, show that they have contingent liabilities of £133m.
That figure, which is the second highest in the Premier League behind only Man City, includes the amount United could pay their players in bonuses as well as other teams in transfer add-ons.
In terms of the breakdown, £112m is attributable to performance-related bonuses, £32m to awards, £12m to international appearances and £1m to other criteria.
In reality, the actual figure United will pay out will be lower than that as the majority of conditions will not have been met.
However, benchmarking against United’s previous accounts, their £384m and reported information about the specifics of United’s bonus structure, the true number is likely to be somewhere around £75m.
In terms of FA Cup bonuses, United players could bank anywhere between £85,000 and £120,000 each if they get the better of Pep Guardiola’s team on Saturday.
What kind of wage structure does Sir Jim Ratcliffe want to implement at Man United?
Ratcliffe has spent his business career chasing efficiencies across multiple industries. His approach at United has already seen himtake some controversial measures to increase productivity.
The £384m they paid players and staff last term was the highest in the Premier League. That does not represent good value. They finish 3rd that season and their only silverware was the League Cup.
United areflirting with the upper limit of the financial fair play quota, and with a stricter squad cost control ratio and financial anchoring system set to be introduced, they need to rein in their spending.
A more bonus-oriented system would likely cap base wages at £250,000 per week, with performance-related incentives used to protect the club financially in a fallow year.
That would prevent the club from giving the likes of Raphael Varane and Casemiro eye-watering salaries without seeing much in the way of performances on the pitch in return.