Sir Jim Ratcliffe boosts Manchester United’s transfer budget by hundreds of millions
It's needed...
Manchester United will be able to ‘significantly increase’ their transfer spending after Sir Jim Ratcliffe’s investment in the club.
On Christmas Eve, the club announced that Ratcliffe and his INEOS partners have agreed a £1.3bn investment in the club.
The deal gives Ratcliffe 25% of the club, and full control of football operations.
While that deal is yet to be ratified, it’s expected to be so in the next four-to-six weeks.
However, further details of the deal are coming to light.
Ratcliffe has pledged a further £235m into the club, with £135m in the next year and a further £100m in the following 12 months.
That will see his stake in the club increased to 29%, but it’s even more significant for the Red Devils as it eases their Financial Fair Play limitations.
United walked away from a deal to sign Harry Kane because they were on the brink of breaking Financial Fair Play.
The club were forced to sell academy products Dean Henderson and Anthony Elanga in order to raise funds, while they discarded of big earners in Eric Bailly, David De Gea and Cristiano Ronaldo in the last 12 months.
United’s financial situation saw them sign Jonny Evans last summer, as well as loan moves for Sergio Reguillon and Sofyan Amrabat.
But Ratcliffe’s investment means they can significantly increase their budget.
The Premier League’s Profit and Sustainability Rules mean clubs cannot lose more than £15m-a-year over the course of a three-year period.
However, owners can inject equity into the club.
The Glazers have not down this in their time at Old Trafford, and have only taken money out.
But rules allow investors and owners to put in their own money, meaning United could be handed an extra £90m-a-year.
For more stories like this, check our sport page.
Follow Metro Sport for the latest news on Facebook, Twitter and Instagram.
