[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  The Swedish Rumble 🔰 [@SwedishRumble](/creator/twitter/SwedishRumble) on x 35K followers Created: 2025-07-18 14:00:59 UTC What does payment in installments really mean? The impact of payments in installments has a direct financial impact and should always be considered when evaluating how expensive a transfer is. For a company with a turnover of several 100s of millions -- money simply has a cost. If you are to pay 100m today the cost of it is 100m but if you are the to pay 100m in X years, the cost is something else. You could for example Day X take the 100m and buy risk free interest bearing securities, own them for X years, and then pay the 100m and keep the interest you have earned during the X years. What is the cost of buying Mbuemo against payments in four installments? To determine this, we must establish what MUFC's 'cost of money' is. The club has a revolving credit facility of £300m. The interest on the revolver is SONIA + 1.75%. SONIA is basically minimum risk market rate (the rate banks charge each other) while XXXX% is the additonal risk that United comes with. SONIA is today 4.22%, and MUFC's 'cost of money' is hence 5.97%. Hence, the "cost" of buying a player for £65m to be paid in X installments, assumed to be X up front and X with XX month intervals, is correctly characterized to be £58.9m in accordance with the below: This is not a number that really can be used to compare with what other clubs have paid for their players -- because a vast majority of transfer agreements stipulate payments in installments nowadays (IIRC we paid Maguire's entire fee up front, but that is an issue for another post...). But the norm is not X installments, but X. How much did we save by being able to negotiate for it to be paid in X installments? The cost for this transfer fee to be paid in X installments would be app. 61m. So the difference of £2.1m isn't entirely insignificant.  XXXXXXX engagements  **Related Topics** [bryan mbeumo](/topic/bryan-mbeumo) [addons](/topic/addons) [mbeumo](/topic/mbeumo) [manchester united](/topic/manchester-united) [100m](/topic/100m) [money](/topic/money) [Post Link](https://x.com/SwedishRumble/status/1946208581214187968)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
The Swedish Rumble 🔰 @SwedishRumble on x 35K followers
Created: 2025-07-18 14:00:59 UTC
What does payment in installments really mean? The impact of payments in installments has a direct financial impact and should always be considered when evaluating how expensive a transfer is.
For a company with a turnover of several 100s of millions -- money simply has a cost. If you are to pay 100m today the cost of it is 100m but if you are the to pay 100m in X years, the cost is something else. You could for example Day X take the 100m and buy risk free interest bearing securities, own them for X years, and then pay the 100m and keep the interest you have earned during the X years.
What is the cost of buying Mbuemo against payments in four installments? To determine this, we must establish what MUFC's 'cost of money' is. The club has a revolving credit facility of £300m. The interest on the revolver is SONIA + 1.75%. SONIA is basically minimum risk market rate (the rate banks charge each other) while XXXX% is the additonal risk that United comes with. SONIA is today 4.22%, and MUFC's 'cost of money' is hence 5.97%.
Hence, the "cost" of buying a player for £65m to be paid in X installments, assumed to be X up front and X with XX month intervals, is correctly characterized to be £58.9m in accordance with the below: This is not a number that really can be used to compare with what other clubs have paid for their players -- because a vast majority of transfer agreements stipulate payments in installments nowadays (IIRC we paid Maguire's entire fee up front, but that is an issue for another post...).
But the norm is not X installments, but X. How much did we save by being able to negotiate for it to be paid in X installments? The cost for this transfer fee to be paid in X installments would be app. 61m. So the difference of £2.1m isn't entirely insignificant.
XXXXXXX engagements
Related Topics bryan mbeumo addons mbeumo manchester united 100m money