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Since Sir Jim Ratcliffe took over at Manchester United, the INEOS owner has been instigating a series of cost-cutting schemes to ease the financial pressure of the club.
United have lost around £370 million in the last five years, with £600 million being spent in the transfer market under Erik ten Hag with nothing to show for it.
As such, Ratcliffe has made “some difficult and unpopular” decisions with even more to come.
So far around 250 staff have been made redundant, Sir Alex Ferguson has been sacked from his role as the club’s global ambassador, concessions on ticket prices have been scrapped and cuts have been made to the club’s funding to several affiliated associations.
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Sir Jim Ratcliffe responds to cost-cutting controversy
Speaking to the United We Stand fanzine, Ratcliffe acknowledged the poor position of the club, commenting: “Manchester United has become mediocre.”
He continued: “It is supposed to be one of the best football clubs in the world. We have to make some difficult and unpopular decisions. If you shy away from the difficult decisions, then nothing much is going to change.
“I know we get criticism in the press, but we do need to challenge the cost of running this club because what I want to be free for us to do is buy really good footballers, not spend so much of the money on infrastructure. We can’t run a business at a loss, which is where United have been in the last couple of years.”
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The concerns and predictions of the cost-cutting exercises
However, a significant focus of he scruitiny is on the costly mistakes made buy INEOS so far, despite the cost cutting exercises they are carrying out.
Sacking Erik ten Hag in October cost United £7.5 million more than if they had done it in the summer, with a total compensation paid of £17.5 million.
Dan Ashworth was sacked five months into the job after paying £3 million in compensation to Newcastle to hire him early.
Of the £600 million spent in under Erik ten Hag, £206 million of it was in INEOS’ first summer transfer window.
However, despite these issues and criticisms, there is hope for United.
Global investment firm UBS recently placed a “buy” order on United’s stock in the New York Stock Exchange, advising clients to purchase the stock they are predicting will rise.
Due to Ratcliffe’s financial focus at the club, UBS are expecting United to make £800 million in revenue over the coming years on their rise to the top.
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