Manchester United are attempting to cut losses on Jadon Sancho after a miserable three seasons at the club for the winger.
There were very high hopes for Jadon Sancho when he signed at Manchester United in 2021. From his underwhelming first start for the club away at Wolves, it became apparent he might struggle to live up to the huge fee.
After lots of negotiating, Manchester United struck a deal at £73 million to sign the winger from Borussia Dortmund.
According to BBC Sport, this was split, with the fee ‘payable over five equal instalments’, which The Athletic claimed were to be spread over five years.
Working on the basis United paid the first up front, the club still owe two further instalments to Dortmund.
Manchester United looking to sell Sancho
Manchester United are now looking to sell Jadon Sancho, with BBC Sport claiming the Red Devils want £40 million for the winger.
Dortmund had Sancho on loan last season and may want to sign him permanently, leading to the question of whether Manchester United could just wipe away the money owed, to get rid of him easily?
According to TBR Football Finance Expert Adam Williams, it is not necessarily so simple for Manchester United.
He explains: “In many cases, selling clubs will go through a transfer creditor when a fee is being paid in instalments.
“This allows them to get the fee upfront, with the creditor taking a commission. This is usually secured against future revenues – TV income, matchday and so on.
“The buying club, in this case Man United, would still be paying in instalments but with the funds effectively being redirected to the creditor.”
Dortmund have not disclosed whether they have chosen to do this or not.
He adds that there is a path where the finances could be worked to wipe out the fee owed, if Dortmund had not used a creditor.
But with a need to show profit for Premier League Profit and Sustainability Rules, actually receiving a fee is likely to be more appealing to Manchester United.
Williams explains: “It could conceivably reduce the asking price, with the remaining instalments acting as a form of discount or credit towards the new transfer fee.
“In this scenario, the remaining instalments could be cancelled or reduced in lieu of an upfront fee.
“But United may prefer to receive a regular fee to improve the PSR/FFP calculation in the short term and continue to pay Dortmund in instalments in order to spread the impact.”
The situation is further complicated as Dortmund had to pay 15 per cent of the substantial profit they made on Sancho, towards Manchester City, as part of a sell-on clause. This further reduces United’s leverage.
Dortmund also lose out from Sancho flop
The market for Jadon Sancho is yet to fully emerge, with no clear suitors rushing forward at this early stage of the transfer window.
The money owed to Dortmund would not restrict Manchester United from selling Sancho elsewhere, as this is an entirely separate transaction – although his unhappy spell at United is not good news for the German side.
Williams explains: “If Sancho signed for another club, Dortmund would continue to receive instalments over the pre-agreed schedule.
“The only impact for them would be that they wouldn’t be picking up any extra income from performance-related clauses.”
Ole Gunnar Solskjaer said at the time, via the club website: “Jadon epitomises the type of player I want to bring to the club – he is a forward player in the best traditions of Manchester United.
“He will form an integral part of my squad for years to come and we look forward to seeing him blossom.
“His goals and assists records speak for themselves and he will also bring tremendous pace, flair and creativity to the team.”
Solskjaer was out of a job within months, while Sancho will not play for the Red Devils again after poor displays across his first two seasons were followed up by falling out with manager Erik ten Hag in 2023/24, and later being sent on loan back to Dortmund.
