October 30 – Fresh from sacking manager Erik ten Hag, Manchester United co-owner, Sir Jim Ratcliffe, will be dipping back into the Red Devil’s coffers to pay the Dutchman, a rumoured £15 million in compensation, as well as possibly a £8.3 million release clause for Sporting Lisbon’s coach, Ruben Amorim.
Having invested £1.25 billion for a 27.7% stake in the club, Ratcliffe has been on a penny-pinching assault as the club seeks a fresh approach to expenditure, however, many of the cuts have proven to be highly unpopular.
250 jobs were cut saving around £45 million per year. Staff perks for the FA Cup victory over Manchester City were stripped back, and possibly the most controversial decision, prior to sacking Ten Hag, was removing Sir Alex Ferguson as club ambassador and his £2 million per year salary.
Veteran defender Jonny Evans said it was “hard and difficult to see… there’s people you’ve known for 20 years”, while former assistant manager Rene Meulensteen said the cost-cutting “needs some justification”.
One former senior United executive – who wished to remain anonymous – said they had grave concerns about the new leadership’s approach. “Sustained sporting excellence is hard to find. My main issue isn’t the sporting side which is volatile, it’s the destruction of culture which underpins a meaningful sporting organisation.
Ratcliffe will point to the £113 million net losses that the club posted in its latest accounts in September as positive news following losses of £115.5 million in 2021-22, however, unless performance improves on the field, the losses will continue.
Despite having the largest kit deal in world football, Adidas, has hedged their bets with a £10 million penalty clause for every season United do not qualify for the UEFA Champions League. With the club languishing in 14th place, a place in Europe’s most glittering competition is not guaranteed.
As well as the initial £1.25 billion, Ratcliffe has also injected £153 million for infrastructure and a revamp of the training ground. Another £76.5 million has been earmarked for additional investment by the end of the calendar year.
With a new stadium to replace the crumbling edifice that is Old Trafford, rumored to be costing over £2 billion, on the table, Ratcliffe, is discovering running one of the world’s most famous football clubs isn’t the same as cycling and sailing, his other two sporting passions.
It is clear to many associated with the club that the initial goodwill Ratcliffe and his executives enjoyed in their early months has been lost, and with the honeymoon period over they are now under intense pressure to get their first managerial appointment right.
Contact the writer of this story, Nick Webster, at moc.l1734971077labto1734971077ofdlr1734971077owedi1734971077sni@o1734971077fni1734971077