17 January 2024 , 15:59
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Manchester United's calamitous European exit could ultimately cost the club £45million, according to their latest financial figures.
Erik ten Hag's side finished bottom of their Champions League group, failing to make the Europa League and missing out completely on the revenue that would have brought the club. Against that backdrop, United's anticipated revenue for the year has dropped from an expected £650-680m to £635-665m, meaning a potential loss of revenue of up to £45m.
Those figures mean United will continue to have limited spending power going forward, with the club's movements in the transfer market this month currently restricted by Financial Fair Play regulations.
United made a net loss of £25.8m for the latest quarterly financial period, with amortisation rising by 16.7 per cent to £46.8m, due to signing Mason Mount, Andre Onana and Rasmus Hojlund.
The club's wage bill rose by 9.7 per cent to £90.3m, due to higher salaries being paid to players who are on incentivised contracts which were boosted by qualifying for the Champions League.
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The figures reflect badly on a costly squad that has failed to deliver on the huge sums invested in it, with United having spent £400m on players since Ten Hag took charge in May 2022. While United's quarterly revenues went up by nine per cent to £157.1m, the club’s overall debt, caused by the Glazer family’s highly-leveraged takeover back in 2005, now stands at £528.8m.
The financial position paints a bleak picture for incoming co-owner Sir Jim Ratcliffe, whose £1.25billion investment in United, for a 25 per cent stake of the club, is set to be ratified in early February.
Sir Jim Ratcliffe has struck a deal to buy 25 per cent of United (Paul Currie/REX/Shutterstock)Ratcliffe's offer for a quarter of United, which gives him overall control of football operations, was formally submitted to the market following the release of the latest financial figures. Documents show Ratcliffe's offer represents a 27.69 per cent ownership interest and affords Ratcliffe's company, Sir Jim's Trawlers Limited, a 28.71 per cent voting interest in United.
The deal will see Ratcliffe take control of football operations at United and the INEOS chief was in attendance at Old Trafford over the weekend as the Red Devils drew 2-2 with Tottenham. He also met with the media ahead of the game, saying: "It's the first match for me since we got here.
"I'm very excited to be here, but I can't answer any questions really. I have met Erik [ten Hag] but it would be inappropriate [to comment on that meeting] until it's all formalised. I have done a few exciting things, but this caps it all. There's no question about that. It's taken a few years and it's taken a few turns, as you know, but these things take some doing."