“Club Would Have Gone Bust by Christmas”
Sir Jim Ratcliffe has delivered a brutal assessment of Manchester United’s financial crisis, revealing the club would have faced bankruptcy by December without his drastic cost-cutting measures. In a no-holds-barred interview, the INEOS billionaire laid bare the scale of United’s mismanagement under the Glazers, admitting even he was stunned by the “scary numbers” hidden in a “forest of financial chaos.”
“Bust by Christmas”
Ratcliffe, who acquired a 28.94% stake in United last year, didn’t mince words. Ratcliffe added, “If we hadn’t implemented the cost-saving projects and [even] if we bought no players in the summer then it would have run out of cash at Christmas. However, we reduced the cost of running the club by about £125 million, so that transforms the club. And £125 million is a lot.”
The club had hemorrhaged £410 million over seven years, including £254 million in the last three, with only one profitable year (2018/19: £18.8 million). Ratcliffe’s team slashed £125 million in annual costs, axing 450 jobs, scrapping free staff lunches, and ending bizarre expenses like a £175,000-a-year “body language consultant.”
“The costs had got out of control,” Ratcliffe said. “The headcount has increased by 250 people. You are going through this period where you are losing lots of money and at the same time you are recruiting heavily. I mean, it doesn’t make any sense.”
“Give Him a Break”
Despite United’s 14th-place Premier League collapse, Ratcliffe staunchly defended under-fire manager Ruben Amorim, blaming injuries for the crisis.
“Frankly, with the squad that he’s had available and the fact he came in mid-season, I think he’s done a great job... If you look at our top eight, you’ve got Mason Mount, and Luke Shaw, who’ve been injured. Rashford’s gone and Sancho. Four of our top eight players in terms of salaries. He’s got a bunch of other injuries … Kobbie Mainoo and Martínez.”
“He’s a young coach. And he’s not perfect. He’s got to be good on the stage [in press conferences], but we want him to be good on the grass. I mean, you have to give the guy a bit of a break,” Sir Jim Ratcliffe added.
Amorim’s 3-4-3 system has drawn criticism, but Ratcliffe praised his courage: “Ruben said, ‘‘This is how the team’s going to play. I’m going to stick to my principles. And I think that takes courage.”
Ashworth & Ten Hag: “Mistakes We Regret”
Ratcliffe didn’t shy from admitting errors, calling the decision to extend Erik ten Hag’s contract after last season’s FA Cup win an “emotional response” and a “mistake.” Similarly, the costly pursuit of Dan Ashworth, who was sacked after five months, lacked “chemistry.” “They were just mistakes,” Ratcliffe said about both of them. He added on Ten Hag: “There was an emotional response and we get criticized for being unemotional and there was a bit of emotion in that decision.”
Ferguson’s “Grumpy” Exit & Bizarre Expenses
Even club legends weren’t spared. Ratcliffe revealed Sir Alex Ferguson was “a little grumpy” when told his £2 million-a-year ambassadorial deal would end. “He came back later and said, ‘Fine, I’ll step away.’ Ratcliffe acknowledged Sir Alex Ferguson’s understanding that the club couldn’t afford it anymore.
Other jaw-dropping expenses included:
• £1 billion in interest payments servicing Glazer debt over 20 years.
• £270 million annual operating costs (up from £170 million in 2016).
• £250 million player wage bill, up from £100 million.
Old Trafford Revival: “The Eiffel Tower of the North”
Ratcliffe unveiled ambitious plans for a 100,000-seat “iconic” stadium, designed by architect Norman Foster, to rival the Eiffel Tower as a global landmark. While INEOS will fund the stadium, he urged government support for regenerating South Manchester.
“We’re not going to ask the Government for any money to build the ground, but we can’t afford to do all of the other stuff around there because that we can’t finance,” he said.