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Sir Jim Ratcliffe has been running the operational side of Manchester United for nearly a year now since buying 27% of the club in February 2024.
Although the announcement of INEOS’ £1.25 billion purchase was announced last December, the deal was only financed earlier this year.
Since then Ratcliffe has been making a huge array of changes for the benefit of the club both on and off the pitch.
The INEOS owner has risked his popularity over several decisions aimed at saving the club’s finances as pressures from Profit and Sustainability Rules (PSR) loom near.
Such decisions include ending Sir Alex Ferguson’s multi-million-pound role as a global ambassador, cutting concessions on ticket prices, cutting staff parties and halving contributions to the club’s disabled supporters association.
However, these decisions appear to be coming good sooner than expected.
Manchester Evening News has reported that global investment bank UBS has made a huge prediction in the club’s forecast around the club’s future.
UBS are a Swiss-based financial institution that operates in over 50 countries, including in the USA with the New York Stock Exchange.
The organisation have granted United’s listed entity, Manchester United PLC (NYSE:MANU) on the exchange with a “buy” rating. This means that the institution has confidence that the club will soon have a higher standing once more in world football, challenging for titles and boosting the revenues as a result.
A key driver for this stance was in fact Ratcliffe’s decision-making, showing a clear focus on managing costs at the club, showing a financial focus, coupled with their access to major revenue streams.
UBS released a note to clients, saying: “The new management and its focus on cost management should support investment to improve sporting performance as well as a return to net profitability.
“We see the real upside to the equity story linked to an eventual return to the more lucrative Champions League, a scenario which could potentially drive revenues to £800m.”
However, adding an air of caution, the group commented: “This is by no means a foregone conclusion given the recent poor performance, but the new manager provides a potential turning point,
“The new manager provides a potential turning point for change, albeit one which may take time to materialise,
“With a superior revenue base than most peers and thus an ability to spend more on talent [players], we assume performance will turn around leading to a Champions League participation from the 2028 season.”
It seems that Ratcliffe himself and his decision to appoint Ruben Amorim have been key factors in predicting success for United.
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