Manchester United minority owner Sir Jim RatcliffeManchester United minority owner Sir Jim Ratcliffe
Manchester United minority owner Sir Jim Ratcliffe
Manchester United have published detailed accounts showing the club are £714million in the red.
Of that amount, £413million is owed to other clubs for player purchases following a lavish transfer window. The Red Devils, in their first summer since Sir Jim Ratcliffe’s minority investment, splashed out on five first-team stars to bolster Erik ten Hag’s squad.
However, the Dutchman was sacked just two months into the new campaign - and 116 days after penning a new contract. The latest financial report shows that sacking Ten Hag cost a whopping £21.4million.
Terminating him from his deal set them back £10.4million, while hiring Ruben Amorim as his replacement required £11million, the bulk of that paid to Sporting Lisbon. Annual losses of £113.4million will also get the blood boiling at St James’ Park as the debate over FFP/PSR restrictions continues to rage.
Newcastle United supporters have been frustrated by the club’s lack of progress in recent transfer windows. The Public Investment Fund and the Reuben brothers are worth a reported combined £738billion but monetary measures have hampered their spending.
While Man United’s debt skyrockets towards £1billion, the Magpies do not owe a penny. They also record fewer annual losses (£73.4million) than the Red Devils despite all the noises suggesting Toon chiefs must sell to buy in January.
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Ultimately, the staggering £660million revenue, compared to Newcastle’s £250million, is what allows Man United to loosen the purse strings. Forged over years of Premier League dominance, the Red Devils have built a global powerhouse with fans across the globe.
Critics of current restrictions argue the difficulty to break into the “elite” bracket. Clubs like Chelsea and Manchester City are proof that the door was open for investment during their takeover era.
The Premier League introduced PSR, its own adaption of UEFA’s FInancial Fair Play (FFP) for the 2013-14 season. But only recently, with Everton and Nottingham Forest suffering points deductions and Newcastle frustrated by spending caps, have the consequences begun rearing their head.
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