Sir Jim Ratcliffe and Ineos are desperate to make Manchester United a sustainable football club.
That was certainly not the case under Glazer ownership, with Manchester United now riddled with debt and wrestling with the Premier League Profit and Sustainability Rules.
United have paid £1bn in interest against the debt built up by the American owners, and the dire mismanagement means Ineos are now trying to solve the mess.
Ratcliffe is set to cut another 200 jobs in his latest cost-cutting methods at Old Trafford. Staff morale is at an all-time low and results on the pitch are certainly not helping.
Fans are protesting £66 ticket prices – another of Ratcliffe’s cost-saving methods. In the meantime, United are falling further and further behind their biggest rivals both financially and competitively.
Photo by Robbie Jay Barratt - AMA/Getty Images
Photo by Robbie Jay Barratt – AMA/Getty Images
Man United rivals set to benefit from £775m Club World Cup
Pressure is on Ruben Amorim to win the Europa League this season, with Ineos budgeting for United to be in Europe for the next four years.
United’s revenue in 2023/24 came in at £662m, but they were overtaken by rivals Manchester City, who broke the £700m barrier in their latest accounts.
Chart showing Manchester United's revenue since 2003-04 and the breakdown between commercial, matchday and media income
Manchester United revenue Credit: Adam Williams / United in Focus / GRV Media
That gap will likely grow even larger with City – alongside Chelsea – set to compete in the inaugural Club World Cup this summer.
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It has been confirmed that the prize pool for the tournament will be a whopping $1bn (£775m), which will be distributed between the 32 participating teams.
Higher payouts will be awarded to teams who progress further in the competition, with City among the favourites to lift the trophy.
Man United PSR problems set to continue
While City and Chelsea are looking forward to a competition that will be as financially beneficial as the Uefa Champions League, United are staring down the barrel of a season out of Europe.
The Premier League voted to retain PSR for another year, rather than transition to the new squad cost ratio system which would have been much more beneficial to United.
PSR states that top-flight clubs cannot lose in excess of £105m over a rolling three-year period – a figure that United have come worryingly close to. In contrast, the squad cost ratio system allows clubs to spend up to 85% of their revenue on wages, transfer fees and agent fees.
Infographic explaining Profit and Sustainability Rules (PSR), the system which used to be called Financial Fair Play (FFP).
Profit and Sustainability Rules infographic Credit: Adam Williams / United in Focus / GRV Media
Because of United’s heavy losses in recent years, including a £113m loss in the 2023/24 accounts, the Red Devils will struggle to spend under PSR.
Infographic showing the profits and losses posted by Man United since 2013-14 to 2023-24
Photo by Plumb Images/Leicester City FC via Getty Images
It helps to explain why Ineos were willing to sell Kobbie Mainoo and Alejandro Garnacho this January, with United scraping the barrel financially.
Prize money from Europe will help to get United out of this mess, but that piles a lot of pressure on Amorim, who will resume United’s Europa League campaign this Thursday against Real Sociedad.