Man United £80m cash injection explained as Sir Jim Ratcliffe keeps Glazers promise
Manchester United have now received almost another £80 million investment from Sir Jim Ratcliffe and Ineos.
The move happened a month ago, on 10 December, but has become official this week. Red Football Limited, the club's parent company, issued 100 new shares to Ratcliffe and Ineos at a price of nearly £80million.
Ratcliffe has now provided the additional £245million of further investment as agreed when purchasing around a quarter of the club. That expenditure was in addition to the £1.2 billion deal that made Ratcliffe one of the club's minority owners and saw Ineos delegated responsibility for managing football operations.
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However, despite the confirmation coming a fortnight after the opening of the winter transfer window, the funding will not provide new head coach Ruben Amorim with a transfer budget. As outlined at the time, the £245million is to enable future investment into infrastructure at Old Trafford.
Two-thirds of that sum came when they completed their minority takeover, with the latest investment being the final third, which came, as agreed, before the end of last year. But as our chief business of football writer Dave Powell has explained, it will provide capital beyond the stadium.
"The aim, largely, was to provide some £50m in capital to aid the Carrington training ground redevelopment, while additional monies will help ease any cashflow issues and provide working capital for such things as the maturity of transfer instalments that are soon to be paid," Powell explains. "While it did not have an additional bearing on United's Premier League profitability and sustainability rules position, the move has served to strengthen the club's balance sheet for the 2024/25 financial year."
Powell added that "there is not likely to be too much of an issue being PSR compliant for the final assessment period for 2024/25." United avoided any punishment for the 2023/24 period.
