Maguire cash will be invested in squad pledge

United sold the Sheffield-born centre-back to Hull City in the summer for £2m, plus £500,000 based on extras, like appearances.

The influx of cash had Blades supporters hankering for some big-name signings, but Phipps insists the money will be spent on the squad.

“The money is in the club. Let me set the Harry Maguire money straight,” said the Blades co-chairman.

“The fans have asked me a million times ‘where’s the £2.5m?’

“It’s £2m, £1m this year and £1m next year. Then £500,000 in contingencies, based on appearances and that sort of thing.

“We will spend the £1m this year, probably this year, and the £1m next year, next year.”

Phipps said they would not pay over the odds for players, and explained why they missed out on Barnsley striker Chris O’Grady.

The former Sheffield Wednesday forward came close to joining United in the summer, before joining Brighton.

“We are unwilling to do things which don’t make good sense,” said Phipps.

“I will give you an example. I think it was a shame we didn’t get Chris O’Grady in the summer.

“We were able to offer a transfer fee that worked, but we didn’t reach personal terms.

“There were plenty of resources to do it, but we won’t do bad business. It’s never been our intention to be anything other than sensible. Whatever the spend is should be fitting for League One, and League One promotion campaign.

“There are constraints. We don’t command which players are willing to play in League One. We don’t control everything. But in terms of level of investment, those who say it has only been £1 need their head checking,” said Phipps, a reference to Prince Abdullah bin Mossad bin Abdulaziz Al Saud buying a 50 per cent stake in United for £1 just over 12 months ago.

“Everyone knows that our club runs at an annual deficit, that’s millions and millions of pounds deep. That has to be covered before any impact is felt in first-team football, so we can keep operating. A football club is a co-operative, the fans are making their investment, we are making our investment – it’s in the millions and millions.”

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