Manchester United and Sir Jim Ratcliffe have both suffered financially over the past 12 months.
The aftermath of Sir Jim Ratcliffe’s minority takeover of Manchester United has not been the success story the British billionaire was dreaming of.
In the first full season under Ineos, the Red Devils finished 15th in the Premier League with no trophies and with added tension around staff at Carrington and Old Trafford.
Ratcliffe lost £6bn in personal wealth over the past year which has posed questions whether he will even stick around as United co-owner.
But Ineos have laid out a long-term plan since taking charge including winning the Premier League by 2028 and building United a £2bn stadium by 2030.
Manchester United Announce Plans to Build New World Class Stadium
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Man United value should soar with new 100,000 stadium
Since Ratcliffe spent £1.25bn buying a 25 percent stake in United, the value of the club has dwindled.
United’s share price dropped after the Europa League final defeat, and Ratcliffe is desperately in need of some positive news both on the sporting and financial front.
According to iNews, Newcastle United’s valuation as a club is set to soar beyond the £1bn point if they announce plans to build a new 65,000-seater stadium.
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PIF purchased Newcastle for £350 million and are now coming close to tripling their valuation through their investments.
Ratcliffe will hope for a similar transformation of United’s valuation through his project to build a 100,000-seater stadium replacing Old Trafford.
Recent reports suggested United are valued at £4.2bn but building a new stadium partnered with the £50m renovation of Carrington will improve that figure.
Sir Jim Ratcliffe must make progress with £2bn Man Utd stadium
The lack of progress made in recent months has caused concerns that United’s stadium might not be completed by the 2030 deadline.
There is still no funding secured for United’s stadium, and with a £2 billion fee to cover, Ineos and Ratcliffe need to make progress.
Selling the stadium naming rights is one option that Ratcliffe can explore to bring in funds for the stadium, but it would be a controversial option among the fanbase.
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Once completed (if completed), the new stadium will generate £230m per season in revenue, which will also help to increase United’s value as a business.
But as each week passes without any news, concerns are growing about how realistic the project really is.