Ratcliffe’s entry into ManU cost the club over $50 million

Sir Jim Ratcliffe’s purchase of a share in Manchester United has cost the club over $50 million. The British billionaire had already acquired a minority stake of around 27 percent in the club in February. Although Ratcliffe only holds a relatively modest piece of the pie, he paid the current majority owners of the Red Devils around $1.6 billion for the stake.

Most minority owners of football teams don’t exactly have much influence over day-to-day operations. But that’s not the case with Ratcliffe. United’s majority owners, the Glazer family, have apparently outsourced control of the club to Ratcliffe and his company INEOS. The virtual changing of the guard has sparked a series of unpopular decisions by Ratcliffe.

Although he remains one of the richest people in Britain, Ratcliffe has opted for several cost-cutting measures since taking office. Yet these measures have directly impacted many of the team’s regular employees. For example, back in May, the billionaire told the club’s staff that they would no longer be able to work from home. Weeks later, Ratcliffe essentially laid off a total of 250 staff at the team’s facilities.

United reported a loss of $91.6 million in the last financial period under Ratcliffe

However, the tough measures came after United posted large losses in the third quarter of the fiscal year. According to The guardThe English club recorded losses of $91.6 million during this period, with a significant portion of these losses resulting directly from the purchase of Ratcliffe from United.

The British news source reports that the billionaire’s purchase of the minority stake cost the club around $51 million, with much of this surprise setback reportedly due to legal and consulting fees.

Despite the news, United sees the blow as a short-term problem. Ratcliffe had previously announced plans to invest around $300 million in new investments going forward. $200 million of that sum has already been used to renovate the club’s training center. However, the renovations also forced the women’s team to train in portable buildings to make room for the men. The men’s team will continue to use the women’s building they are used to during the renovations.

Ratcliffe wants to make a splash in the summer transfer market

Ratcliffe is being creative with his cost-cutting measures, but is also looking to demonstrate his financial strength in the transfer market. The Red Devils are apparently close to signing Bologna star striker Joshua Zirkzee. The Dutch striker has a release clause of around $42 million in his current contract. However, that price could rise even further, rising as high as $59 million when agent fees are taken into account.

United are also reportedly in talks with Bayern Munich over a deal for defender Matthijs de Ligt. The German record champions are willing to sell their compatriot for around $53 million. If the deal goes through, de Ligt could be joined in Manchester by teenage phenomenon Leny Yoro.

United have already received a $48 million offer from Lille for the highly-rated youngster. However, the youngster is still waiting to see if Real Madrid will enter into negotiations. United are also targeting Manuel Ugarte of PSG.

While many of the top English teams in the market are exercising patience, Ratcliffe and United are keen to get the deal moving as quickly as possible. The Red Devils will certainly need to make some smart player moves this summer to compete in the Premier League, but Ratcliffe is doing his bit for now.

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