Billionaire Jim Ratcliffe's investment helps Man Utd increase spending budget in the transfer market.
Under the Premier League's profit and sustainability rules, each club can only lose a maximum of $19 million per year for three consecutive financial years. However, this loss can be offset by investments from the club's owners. With the investment that billionaire Ratcliffe is about to pour into the club, Man Utd can extend the allowed loss to 134 million per year. This will allow them to spend more freely from the summer of 2024.
On December 24, Man Utd announced Ratcliffe's investment deal. British media reported that the Manchester-born billionaire will use $1.3 billion to buy 25% of the shares and commit to investing an additional $300 million in the team's operations. He will control the sports side, while the Glazer family will still hold the majority of shares and the commercial side. The investment is awaiting approval from the Premier League Organizing Committee.
Ratcliffe visited Old Trafford in March 2023. Photo: Reuters
In the summer of 2023, coach Erik Ten Hag had considered Harry Kane as a top target when the England captain was preparing to leave Tottenham. However, due to concerns about violating the Premier League and UEFA's financial fair play regulations, they had to watch Kane join Bayern.
In July, Man Utd were fined $325,000 for what UEFA's financial control body described as a "small loss". However, they still spent more than $200 million on players Mason Mount, Rasmus Hojlund and Andre Onana.
In addition to widening the allowed loss to 134 million, Man Utd can also increase their spending power by selling players. Donny van der Beek has just been pushed to Eintracht Frankfurt on a half-season loan, with an option to buy. Jadon Sancho, who was demoted to the youth team by Ten Hag due to disciplinary violations, is being interested by his former club Dortmund and several other clubs. Man Utd can also sell Casemiro and not exercise the one-year option to extend Raphael Varane.
In 2005, the Glazers spent about $1.5 billion to take over Man Utd. They borrowed $1 billion and transferred the debt to the club after the takeover. Late last year, the Glaazers began the process of selling their shares. Qatari businessman Sheikh Jassim wanted to buy all the shares, but did not meet the price. Meanwhile, Ratcliffe was more patient and was accepted to buy 25%.
Ratcliffe is a famous billionaire in the petrochemical industry. According to Forbes magazine, as of January 2024, he owns a fortune worth 23.7 billion USD. Through the INEOS group, Ratcliffe has invested in a series of sports teams such as the Laussane-Sport football team (Switzerland), Nice (France), the INEOS cycling team, or the Mercedes AMG F1 team. Nice is currently ranked second in Ligue 1.
Thanh Quy (according to Times )
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