Man United cash injection confirmed after £250m Sir Jim Ratcliffe promise
Manchester United Confirms Final Tranche of Funding from Sir Jim Ratcliffe
Manchester United has confirmed the receipt of the final tranche of funding promised by co-owner Sir Jim Ratcliffe.
As part of the £1.2 billion deal to acquire a 27.7% stake in the club, Ratcliffe had pledged an additional £250 million for infrastructure development.
The public through a filing with Companies House, which showed that Red Football Limited, the parent company of Manchester United, had issued 100 new shares valued at nearly £80 million.
These shares were allocated to Ratcliffe or his company, INEOS, to facilitate the absorption of the final tranche of funding.
Ratcliffe’s Role and Influence
Ratcliffe’s acquisition of a minority stake in Manchester United in December 2023 granted him control over the club’s football strategy.
Although the Glazer family remains the majority owner, they have taken a step back, allowing Ratcliffe to exert his influence.
The primary objective of the funding is not to provide a transfer war chest but to support various infrastructure projects and ease cash flow issues.
Approximately £50 million will be allocated to the redevelopment of the Carrington training ground, while the remaining funds will be used to address working capital requirements, such as the maturity of transfer instalments.
Impact on Financial Position
The injection of funds has strengthened Manchester United’s balance sheet for the 2024/25 financial year.
This is particularly significant, as it will be the final year considered in the Premier League’s Profit and Sustainability Regulations (PSR) before the introduction of the squad cost ratio rule.
Manchester United had narrowly avoided punishment for PSR non-compliance in the 2023/24 period.
The confirmation of the final tranche of funding from Sir Jim Ratcliffe marks a significant milestone for Manchester United.
The investment will support the club’s infrastructure development and provide financial stability, positioning the team for long-term success.
