Jim Ratcliffe’s minority investment in Manchester United has already cost the club $43.78 million, according to financial figures released on Tuesday.
Manchester United’s latest quarterly results also show a gross debt of almost a billion dollars.
Ratcliffe, the British billionaire, bought a 27.7% stake in the Premier League club last month, more than a year after the American owners, the Glazer family, launched a tender with potential buyers.
United’s results show a “one-off” item of $12.28 million for “costs incurred in connection with the group’s strategic review and agreed sale” to Ratcliffe. Other charges will be included in future financial results.
United said the fee was in addition to $31.5 million paid to U.S. investment bank Raine Group, which oversaw the deal.
Ratcliffe paid $1.3 billion for its minority stake and made an additional investment of $200 million. United said Ratcliffe intended to invest an additional $100 million by the end of the year.
While his arrival was warmly welcomed by United fans, many of them have long campaigned to oust the Glazers altogether. Many were angered by the club’s debt levels when it was purchased by the late tycoon Malcolm Glazer in 2005 for around $1.4 billion at the time.
Relations have not improved due to the team’s declining performances on the pitch, with United having not won a league title since former manager Alex Ferguson retired in 2013.
The latest figures show United’s gross debt currently stands at more than $990 million, which includes long-standing debt of $650 million and $341 million under the United States’ revolving credit facility. club.
United said it achieved record second-quarter revenue of $288.84 million and is on track to achieve record revenue of $812.30 million to $850.75 million for the entire fiscal year.
As part of his investment, Ratcliffe has taken control of United’s footballing operations and has already started to make changes. Omar Berrada, former Manchester City manager, has been hired as chief executive, while Dan Ashworth, Newcastle’s sporting director, is also targeted.
Ratcliffe also wants to redevelop or rebuild United’s Old Trafford stadium and last week a task force was set up to accelerate those plans. “We are all committed to working with our new co-owners to move the club forward and ensure its success on the field,” said Cliff Baty, Chief Financial Officer.
Source: Africanews
