Manchester United confirmed another academy departure this week as winger Ethan Ennis joined League One club Stockport County. The 21-year-old was a standout last season at Fleetwood Town, scoring six goals and bagging eight assists for the League Two club.
After that taste for senior football, a number of EFL clubs were battling for Ennis' signature with Stockport eventually winning the race.
Stockport's delight at Ennis capture
Reflecting on the deal, the Hatters' head coach Jimmy McNulty said: "Ethan is a really exciting addition for the football club, and I'm delighted to welcome him to Edgeley Park as part of our County team."
"Ethan has had a unique education as a footballer, having been developed by two of the biggest and most successful clubs in the country. As a result, he is a player who has all the attributes to succeed at this level and higher over the next few years of his career."
United's sell-on and buyback model
United are backing Ennis to succeed. As well as receiving a fee for the forward, the Reds have also included a 50 per cent sell-on clause. Plus, they have added a buy-back option and matching rights clause to the contract, keeping themselves at the front of the queue if Ennis achieves his potential.
Ennis joins a list of academy players to leave the Reds this window. Ethan Williams joined Peterborough United last week, Radek Vitek has signed for Middlesbrough and Tyler Fredricson joined Ineos-owned Lausanne Sport.
Each of these deals followed a similar model to Ennis' exit. A 50 per cent sell-on clause, a buyback option and matching rights clause were added to Williams' departure, Vitek was sold for a substantial fee, that could rise to £14m, and included a 35 per cent sell-on plus the buyback and matching rights clauses. Meanwhile, the Fredricson deal included a "high percentage" sell-on clause and buyback option.
Pure profit and further exits
These decisions are working towards Sir Jim Ratcliffe's ultimate goal of making the academy more lucrative for the Reds. "You need the academy to be producing talent all the time. It helps you financially," he said on The Business Podcast last October.
Academy sales are particularly important as they account for 'pure profit' on United's books. 'Pure profit' means their 'book value' is zero, so any money brought in from their sale is represented as revenue for the club.
Further departures from the academy are expected this summer. Toby Collyer, Dan Gore and Chido Obi are among the United youngsters who could all still leave before the deadline, either on loan or permanently.
