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Ratcliffe is officially in charge of Manchester United, and it will not be like Manchester City who came to the past and will carry out a purge this summer

Ratcliffe is officially in charge of Manchester United, and it will not be like Manchester City who came to the past and will carry out a purge this summer

Ratcliffe is officially in charge of Manchester United, and it will not be like Manchester City who came to the past and will carry out a purge this summer

On February 21, it was reported that with the stricter financial fair play rules of UEFA and the Premier League, the current reform of giants will never happen again.

Ratcliffe really took over Manchester United on Tuesday night, and although the Glazer family is still the majority shareholder, it is more of a financial investor, and the basic operations are basically handed over to the Ratcliffe team.

Ratcliffe bought a 27.7% stake in Manchester United for £1.3 billion, and will invest an additional £238 million into Manchester United's account for the operation of Manchester United.

Manchester United fans don't get excited, this doesn't mean that Manchester United are waving money in the transfer market this summer.

Ratcliffe is officially in charge of Manchester United, and it will not be like Manchester City who came to the past and will carry out a purge this summer
Ratcliffe is officially in charge of Manchester United, and it will not be like Manchester City who came to the past and will carry out a purge this summer

How to spend 238 million pounds

It depends on a lot of complicated factors, so when the money comes in, it will sit quietly in the Manchester United account.

The most important factor is whether Old Trafford will be refurbished or completely rebuilt.

Previously, Manchester City Hall also released a plan to plan an 87-hectare plot of land near the Trafford Quay Station on the LRT, divided into five parts, including the pitch area, the Innovation Centre and more.

Manchester United's plan is to build a new 90,000-seat stadium next to the existing 113-year-old stadium.

It will take 15 years to complete the renovation of the entire area, and 5,000 new homes will be built.

The UK economy has been in recession for nearly 15 years, and the northern cities have been slower than London, and they do need such projects to stimulate the local economy and solve some of the employment problems.

If a new stadium were to be built under this plan, it would cost between £1.2 billion and £1.6 billion, with a minimum construction period of three years. Ratcliffe's investment of 238 million is obviously not enough, and a large amount of money has to be financed through bank loans.

Why not go for a cheaper refurbishment scheme, such as Liverpool's expansion of the Anfield Road stands.

Refurbishment means that at least one side of the stand is closed for a given period of time, which can affect Manchester United's matchday earnings.

Manchester United currently has the largest matchday revenue in the Premier League, which can reach around £130 million a season, accounting for about 20% of the overall revenue. The only one who has the potential to overtake Manchester United is Tottenham, with the new stadium indeed bringing in more revenue and London tickets being more expensive.

The second question related to whether the stadium will be rebuilt or new will be whether United will play in the Champions League next season.

Manchester United are currently sixth on points, and if England teams perform well in the three major cups this season and finish in the top two, they could secure an additional Champions League qualification, which means that the fifth in the Premier League can also play in the Champions League.

Manchester United are now just three points clear of fifth-placed Tottenham and five points behind fourth-placed Villa, and there is still hope of qualifying for the Champions League.

If he can play in the Champions League next season, it means that he will receive at least 40 million pounds of UEFA share, and there will be more to go to the knockout rounds.

Manchester United certainly don't want to sacrifice home ticket revenue for Champions League games, so Plan A to maintain the status quo at Old Trafford and build a new stadium next to it will get more support.

If that is the case, a fraction of the £238 million will be used for some of the club's day-to-day expenses, with the majority being set aside as start-up funds for the new stadium plan before taking out loans.

What is the financial situation of Manchester United

Manchester United, which is listed on the New York Stock Exchange, announced its financial statements for the first quarter of the 2023-24 fiscal year on January 17.

Note that the first quarter for professional football clubs refers to July-September 2023.

In the second quarter, Manchester United was eliminated from the Champions League group, and Manchester United lowered the scale of revenue for this season, expecting annual revenue to be between 635 million and 665 million pounds.

In the last financial year, Manchester United made a record revenue of £648 million, but still lost £28.7 million.

In the 2021-22 season, Manchester United lost a whopping £115.5 million.

Manchester United's debt has now accumulated to £700 million.

It can be said that Manchester United is a money-making machine, and the Glazer family has made a lot of money with this machine. However, the club's own debt is high, and in recent years, it has been due to chaotic transfer operations and indiscriminate high salaries to players, which has led to an increase in losses.

Much of the £1.3 billion Ratcliffe bought the shares into the hands of the Glazer family, with a small portion going to minority shareholders. The six Glazer brothers each received between £1 and £150 million from Ratcliffe's acquisition of a 25% stake in Manchester United.

Before the brothers got the acquisition price of about 800 million pounds, they had diluted part of their shares, got 465 million pounds, paid dividends of 166 million pounds in 18 years, paid 55 million pounds for board members, and paid 23 million pounds for management fees, adding up to about 700 million pounds.

The Glazer family now owns more than 50 per cent of Manchester United. If they quit Manchester United completely and sell the remaining shares, they will receive at least £2.7 billion, which adds up to a net profit of £4 billion!

Is Manchester United in danger of breaching PSR rules

It's healthy at the moment. Although there are a lot of losses mentioned earlier, the Premier League PSR also stipulates that the deduction of losses caused by the epidemic factor is used for the cost deduction of training base construction, women's football, and youth training, so now Manchester United is still below the red line.

The Premier League's profitability and sustainability rules also stipulate that cash on the books and bank facilities can cover losses. Manchester United currently have £60 million in cash on their books, and the credit facilities of a number of banks have not been used, so they are even safer.

However, Manchester United has also been emphasizing that it will not buy players at high prices in the transfer market in the future and give players super high wages.

Ratcliffe is officially in charge of Manchester United, and it will not be like Manchester City who came to the past and will carry out a purge this summer

A new management structure has taken shape

Inaossport's Braitworth is expected to become chairman of Manchester United (usually a real bigwig boss does not become chairman).

CEO Omar Brada former Manchester City COO brought in Erling Haaland for Manchester City

Sporting director Dan Ashworth former Newcastle sporting director brings in Tonali, Barnes

Head of Recruitment: Jason Wilcox Southampton (Former Manchester City Head of Academy)

Manager Ten Hag will not change for the time being

In fact, the new management structure can not do much in terms of open source, nothing more than counting on Ten Hag to lead the team to qualify for the Champions League.

Manchester United have almost reached the limit in terms of commercial sponsorships, matchday, shirt and memorabilia sales, with very little room for improvement, and the only thing they can do is to count on tens of millions of pounds more for participating in the Champions League.

But the new management structure can do a lot to reduce costs, and changes to the current extremely bloated club personnel structure are already underway, in short, layoffs.

The next move is to see which of these old people with a weekly salary of more than 200,000 pounds are not in Manchester United's long-term plan and need to be purged this summer.

In fact, after the top two on the salary list, Cristiano Ronaldo and De Gea, have saved a lot of money on Manchester United's wage expenses, but more can be done.

Casemiro and Raphael Varane, who earn more than 300,000 a week, can go, and Rashford is a point of doubt.

Anthony, Anthony, Maguire, and Eriksen can actually be sold.

Jadon Sancho, Donny van de Beek and Mason Greenwood are all on loan and could also consider a permanent move.

Of course, if Ten Hag is not needed in the future, it is also possible to get Sancho back from Dortmund.

In the future, Manchester United's recruitment strategy may be more inclined towards young players like Hojlund.

In fact, one of the advantages of signing young players is that the salary can be set relatively low. Centre forward Hojlund earns just £85,000 a week, a quarter of Casemiro's salary.

And their own youth players go to the first team, and the weekly salary of 30,000 pounds is generally high, and it is also a way to continue to find talents like Maynu from their own youth training and select them into the first team. Menou's weekly salary is only £10,000!

However, the obstacle to United's quick squad purge is player wages, which are too high to sell unless players are willing to take a significant pay cut.

From Palada to Dan Ashworth, who have a lot of connections in player transfers, it's up to them to solve this problem, and Ratcliffe has chosen the right man, and a purge is about to take place this summer.

Of course, with the money after the sale, Manchester United actually only needs to strengthen two key positions, one is the midfielder, and the other is the central defender.

The new midfielder is partnered with youngster Maynou, with Scott McTominay rotated and an injured number Mason Mount available.

The new centre-back is partnered by Martinez, with Victor Lindelof rotated and a Luke Shaw available for a cameo. Of course, if you have enough funds, you can also buy a potential stock.

For Ratcliffe's arrival at Manchester United, many fans are still on the sidelines, Manchester United fans have experienced too much pain in the past 10 years, and they seem to be a little less convinced that change will really come, and reform will make Manchester United better, although every Manchester United fan is looking forward to it.

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