Manchester United co-owner Sir Jim Ratcliffe
Image Credits: Getty Images
Manchester United are in dire straits when it comes to their financial position as yet another loss is due to be recorded.
The Red Devils’ financial pressures have been well covered in the news over the past year, as Sir Jim Ratcliffe’s controversial measures to ensure United’s sustainability have drawn significant attention.
The INEOS owner has authorised ticket price hikes, mass redundancies and cuts to funding to associated groups, all in a bid to stop the club going bust.
With the difficulties being faced by the club, a win in the upcoming Europa League final is absolutely vital.
Winning the European tournament would also grant the club qualification to next season’s Champions League, and with it an extra £100 million in revenue and help them to avoid a £10 million penalty fee with sponsors Adidas.
However, The Daily Mail has reported that these ‘winnings’ are set to be spent before they’ve even been won with the club set to register another financial loss in the coming weeks.
It’s understood that The Red Devils have experienced a massive £40 million loss in the third quarter of the financial year.
This forecast, coming from Wall Street analysts who are usually spot on with their consensus, highlights the issues that United are facing from years of financial mismanagement and the interest payments on the Glazer debt impeding Ratcliffe’s attempts at making United a profitable business.
The club’s total debt is currently in excess of £1 billion, including roughly £300 million of transfer fees which are still to be paid for current Manchester United squad members.
This year the club have generated £160 million from day-to-day activities, however is still set to make a losses for the year, making it six years of losses in a row, totalling £450 million.
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