Jim Ratcliffe’s minority investment in Manchester United has already cost the club $43.78 million, according to financial reports disclosed on Tuesday.
Manchester United’s most recent quarterly reports also reveal a gross debt of about a billion dollars.
Ratcliffe, the British billionaire, purchased a 27.7% share in the Premier League team last month, more than a year after the Glazer family, the American owners, announced a tender with potential purchasers.
United’s reports include a “one-off” item of $12.28 million for “costs incurred in connection with the group’s strategic review and agreed sale” to Ratcliffe. Additional charges will be shown in future financial statements.
United said the charge was in addition to the $31.5 million paid to Raine Group, the US investment firm that supervised the transaction.
Ratcliffe paid $1.3 billion for the minority holding and invested an extra $200 million. United stated that Ratcliffe wanted to invest an extra $100 million before the end of the year.
While his arrival was warmly received by United fans, many of them had long advocated for the Glazers’ removal. Many people were outraged by the club’s debt levels when it was bought by late entrepreneur Malcolm Glazer in 2005 for approximately $1.4 billion.
Relations have not improved as a result of the team’s poor on-field performance, with United failing to win a league title since previous manager Alex Ferguson retired in 2013.
According to the most recent numbers, United’s gross debt is now more than $990 million, including $650 million in long-term debt and $341 million under the United States’ revolving credit facility. club.
United reported record second-quarter sales of $288.84 million and is on track to generate record revenue of $812.30 million to $850.75 million for the fiscal year.
As part of his investment, Ratcliffe has taken charge of United’s football operations and has already begun to make changes. Former Manchester City manager Omar Berrada has been hired as CEO, while Newcastle’s sporting director Dan Ashworth is also a target.
Ratcliffe also wants to redevelop or rebuild United’s Old Trafford stadium, and a task force was formed last week to expedite those efforts. “We are all committed to working with our new co-owners to move the club forward and ensure its success on the field,” stated Cliff Baty, Chief Financial Officer.