Manchester United’s transfer budget is reportedly set to be boosted by the investment from Sir Jim Ratcliffe.
Last week, it was confirmed that British billionaire and INEOS boss Ratcliffe had agreed a deal to buy a 25% stake in the Old Trafford club.
It has been reported that Ratcliffe and his team will head up the football operations whilst the Glazers deal with the commercial side.
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Now, it has been reported that there could be a change in United’s transfer budget.
According to The Times, Ratcliffe’s investment is set to increase the club’s ability to buy players in the summer without breaking financial fair play rules.
Back in July, the Old Trafford club were fined for “what the club described as “a minor technical breach of . . . previous Financial Fair Play rules” during the European governing body’s 2022 reporting period. United’s player recruitment has also been constrained by the Premier League’s profit and sustainability rules (PSR), which restrict clubs to £15 million of allowable losses over a three-year period.”
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It is believed that a further £90 million of losses is permitted if an owner injects new equity into the club.
As a result of Ratcliffe’s deal, United’s allowable losses have gone from £15 million to £105 million.
The Times stated: “As transfer fees are amortised over the length of a player’s contract, adding £90 million to United’s PSR limit grants Ratcliffe’s sports management team the option of spending several hundred million more on recruiting new players or coaching staff.”
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Speaking about working with Ratcliffe, United boss Erik ten Hag said: “I don’t think it has had an impact on the players. I was kept informed in the whole process, first by Richard Arnold [former CEO] and then Patrick Stewart [interim CEO], so I knew what was going on. We’re looking forward. I think it is positive for the club that they are stepping in.
“They have a lot of experience in sport at the highest level – F1, a cycling team, football clubs. They can only help us and support us to get our targets. They want to work with us and we want to work with them.”
Featured Image Credit: GettyTopics: Sir Jim Ratcliffe, Manchester United, Football