Billionaire Jim Ratcliffe’s investment helps Man Utd increase its spending budget in the transfer market.
According to the Premier League’s profit and sustainability regulations, each team can only lose a maximum of 19 million USD per year for three consecutive fiscal years. However, this loss can be compensated by investments from club owners. With the investment that billionaire Ratcliffe is about to pour into the club, Man Utd can expand the allowed loss to 134 million per year. This will allow them to shop more comfortably from summer 2024
On December 24, Man Utd announced Ratcliffe’s investment agreement. British media said that the billionaire born in Manchester will use 1.3 billion USD to buy 25% of the shares and commit to invest an additional 300 million in the team’s activities. He will control the sports segment, while the Glazer family will still hold a majority stake and the commercial segment. The investment is awaiting approval from the Premier League Organizing Committee.
In the summer of 2023, coach Erik Ten Hag once considered Harry Kane to be the top target when the England captain prepared to leave Tottenham. However, due to concerns about violating the financial fair play laws of the Premier League and UEFA, they had to watch Kane join Bayern.
In July, Man Utd was fined $325,000 for what the UEFA financial control agency described as a “small loss”. However, they still spent more than 200 million to buy players Mason Mount, Rasmus Hojlund and Andre Onana.
In addition to expanding the allowed loss to 134 million, Man Utd can also increase its purchasing capacity by selling off players. Donny van der Beek has just been pushed to Eintracht Frankfurt on a half-season loan, with the option to buy permanently. Jadon Sancho, a player who was pushed down to the youth team by Ten Hag due to disciplinary violations, is of interest to his old club Dortmund and a number of other clubs. Man Utd could also sell Casemiro and not exercise the one-year extension option with Raphael Varane.
In 2005, the Glazer family spent about 1.5 billion USD to acquire Man Utd. They borrowed one billion and transferred the debt to the club after the acquisition. Late last year, the Glaazer family began the process of selling shares. Qatari businessman Sheikh Jassim wanted to buy all the shares, but could 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 assets worth 23.7 billion USD. Through the INEOS group, Ratcliffe has invested in a series of sports teams such as the football team Laussane-Sport (Switzerland), Nice (France), the INEOS cycling team, or the Mercedes AMG F1 team. Nice is currently ranked second in Ligue 1.