Man Utd warned ‘to be careful’ as they ‘could now land PSR penalty’ with PL ‘watching closely’
Man Utd have been warned by former Everton chairman Keith Wyness that they are risking a breach Profit and Sustainability Rules (PSR) with their huge infrastructure spending plans.
The Red Devils unveiled further details about their project to regenerate Trafford Park, which is centred on a new 100,000-capacity stadium, at the Labour Party Conference in Liverpool last month.
Oxford Economics, who were commissioned by the club to investigate the economic feasibility of the project, outlined what they believe will be its enormous impact.
The firm found the project, which is being spearheaded by billionaire INEOS chief and new Man Utd co-owner Sir Jim Ratcliffe, could also deliver 92,000 new jobs, more than 17,000 new homes and an extra 1.8million visitors per year.
Since buying a minority stake in the club in February, which effectively put him in charge at Old Trafford, Ratcliffe has spoken of his desire to create a “Wembley of the North” upon the footprint of the club’s existing home.
Although Man Utd co-owner Ratcliffe initially hinted he could pursue government assistance in order to fund the project, the prospect of using public money appeared to be ruled out by Greater Manchester Mayor Andy Burnham.
Burnham told ITV: “It could be the catalyst for growth across the North West.
“This scheme could also bring benefits to the Liverpool City Region. They have plans for a major strategic rail interchange just off the M6 in St Helens. If we relocate the freight behind the current Old Trafford, that will help that scheme go forward.”
Football Insider says that ‘a filing to the US Securities and Exchange Commission (SEC) on 13 September revealed United are offering to sell securities of a mixed variety for the purpose of raising up to $400million (£301million).’
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And now former Everton chairman Wyness has warned Man Utd that plans to spend big on a new stadium and other infrastructure projects will be scrutinised for potential PSR breaches with Football Insider insisting the Red Devils ‘could now land PSR penalty’.
Wyness told Football Insider: “This money could be for a mixture of things. It could be to go towards the planning for the stadium, it takes a lot of money to get a project like that off the ground.
“It could also be to go towards some of the debt at the club. It’s not a significant sum in the overall scheme of things.
“It was announced that United will get no government money for the new stadium, except for the surrounding infrastructure.
“This is where they have to be careful, and people will have to be watching them.
“If they take this new money and build a new computer system, for example, and claim it’s all for the new stadium – but it starts doing work on scouting and player databases, that’s where they cross the line in terms of PSR.
“We have to watch them closely and make sure they play by the rules. I know there will be enough people doing that.”