In an exclusive interview with The Telegraph, the co-owner of Man United described the Old Trafford team as a "ship out of control". Sir Jim Ratcliffe revealed that being forced to cut 450 employees is necessary to stabilize finances, thereby rebuilding the squad next summer. Even if they are not determined and take strong measures in streamlining the operating apparatus, Man Utd is expected to go bankrupt before Christmas this year.
"We have seen many businesses fall into a state of disorientation. Man United at the moment is similar, even worse. Looking at the data, statistics and financial reports, the MU is no different from a ship that has gone beyond control.
Simply put, the team has spent more than the money it has earned in the past 7 years, including this year. If this continues, Man United will run out of budget and officially go bankrupt by the end of 2025. It's sad to make these public, but that's the real problem the team is facing, said Sir Jim Ratcliffe.
According to statistics, Man United has lost a total of 410 million pounds over the past 7 years, including 254 million pounds in the last 3 years. If deducting the interest of 18.8 million pounds recorded in 2019, the red half of Manchester lost 391.5 million pounds during this period. Over the past 20 years alone, Man Utd has paid the Glazers nearly £1 billion in interest, excluding dividends and arising costs.
The loss of control over financial capacity is partly due to the waste in paying salaries to the team's players and staff. According to Sir Jim, MU paid too much to players who did not meet the abilities and qualifications expected by the team. Even if they do not buy more players in the 2025 summer transfer window, the Red Devils still have to pay huge transfer debts, such as the cases of Antony, Jadon Sancho, Rasmus Hojlund, ...
The British billionaire was even shocked to learn that his team hired a body language expert for a salary of £175,000/year. It is this waste that has forced Sir Jim Ratcliffe and his colleagues at INEOS to cut unnecessary spending. Even Sir Alex Ferguson's role as a global ambassador has been terminated.
According to The Telegraph, Sir Jim Ratcliffe had a direct discussion with the former Scottish strategist about the team's financial situation. Although Sir Alex Ferguson was a bit surprised and irritated at first, he later completely agreed and voluntarily cut the cost to save the team.
In addition, Sir Jim Ratcliffe also admitted that appointing and renewing Erik ten Hag's contract after last season was a big mistake. However, the British billionaire still believes that the new management team, headed by CEO Omar Berrada, will revive Man Utd and help the team achieve the highest profit in the Premier League within the next 3 years.
