Manchester United CFO Wary of Brexit Handing Advantage to Real Madrid, Barcelona

Manchester United chief financial officer Cliff Baty fears the Red Devils could be at a disadvantage to the likes of Real Madrid and Barcelona if British clubs lose the EU and European Economic Area exemption to FIFA rules around the signing of young players as a result of Brexit.  

He also addressed the problems that arose last summer in the immediate aftermath of the Brexit vote that saw some players asking to be paid in euros rather than sterling.

Baty told a KPMG football finance forum on Wednesday (via the Associated Press' Rob Harris): "There's a practical, operational issue around Brexit. With regard to bringing in players from Europe and losing competitive advantage from the likes of ourselves against Real Madrid and Barcelona.

"If you have 16-year-olds going to play for them, and if we have to wait until 18 there are clearly practical issues there. I'm sure that will be discussed. It's certainly something the Premier League are aware of."

Per Harris, along with other clubs in the EU and European Economic Area, United are allowed to transfer 16- and 17-year-old players between countries in the area.

But after Brexit, British clubs may be held to the same rules as the rest of the world, which limits clubs to signing players over the age of 18 "unless a settlement is agreed before the anticipated March 2019 departure from the EU."

After the outcome of the Brexit vote last summer, just as United were negotiating the key signings of Zlatan Ibrahimovic, Henrikh Mkhitaryan and Paul Pogba, the value of sterling took a nosedive.

As explained by The Times' Martyn Ziegler, it is believed United agreed to pay the trio, all represented by agent Mino Raiola, in euros because of the issues caused by Brexit:

And Baty admitted it was a tough summer, per Harris: "It was a bit difficult last year when you're trying to make signings in the summer and you have players questioning the value of being paid in sterling. A lot of European players want to be paid or want to have their value to be underpinned in euros. That's understandable to a degree, but we are not a euro company. We obviously earn most of our income in sterling.

"Last year was a bit difficult...but you aren't going to lose a signing over that. It just makes the finances a bit more complicated."

Auditing firm KPMG recently valued United ahead of Real and Barca as the richest club in the world, per Sky Sports News HQ's Kaveh Solhekol:

The Old Trafford outfit's financial clout has allowed them to remain competitive in the transfer market despite poor Premier League results since Sir Alex Ferguson retired in 2013.

However, United could be put on the back foot in terms of signing the best young talent in Europe if Baty's fears are realised.