Sir Jim Ratcliffe, the Monaco-based billionaire behind chemicals empire Ineos has been fighting twin problems in business and sport. Ineos has struggled with a sector-wide downturn, linked to the faltering health of the global economy and international energy prices.
And Manchester United, the football club that boyhood fan Ratcliffe bought a huge stake in last year, sits in 16th place in the Premier League as this season wraps up, two spots above relegation. It’s on course for its worst finish since 1975.
Despite all that, Ratcliffe’s United has a shot at making it to Europe’s top football competition if it beats Tottenham Hotspur this evening. Win the Europa League final on Wednesday and United will qualify for the Champions League. A victory would salvage what has been a disappointing first season of ownership.
Ratcliffe joined a club struggling to recover its mojo and promised a revival. That hasn’t materialised so far. The club’s troubles on the pitch have been compounded by financial issues that have only worsened since Ratcliffe joined.
United’s decision to give previous manager Erik ten Hag a new contract last summer only to fire him a few months later cost about £21mn. That came after a five-year spell of consecutive losses totalling more than £370mn.
Earlier this year, the club said up to 200 people would be made redundant, bringing the total number being let go under Ratcliffe to 450 people, or a third of the workforce. Less than a month later, Ratcliffe unveiled plans for a new £2bn stadium. Suffice to say, that didn’t go down well with fans, who questioned the wisdom of the outlay given the state of the club’s purse and the lay-offs.
Ratcliffe will be hoping the club wins today. There’s nothing like a trophy to keep the naysayers at bay. Lose, and United will miss out on lucrative broadcasting income and a shot at competing with Europe’s best teams.
But by a strange quirk of its bond covenants, a loss could save United more than £700mn. This scenario relies on United’s rolling 12-month ebita falling below £65mn. The closest it came to that was in 2022, when ebita reached £81mn.
Labels
Europa League Manchester United Premier League
West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....