Jim Ratcliffe’s minority investment in Manchester United has already cost the club $43.78 million in fees, according to financial figures released Tuesday.
United’s latest quarterly results also showed current gross debts of nearly $1 billion.
Ratcliffe, the British billionaire, last month bought a 27.7% stake in the Premier League club — more than a year after American owners the Glazer family invited offers from potential buyers.
United’s results stated an “exceptional” item of 9.6 million pounds ($12.28 million) for “costs incurred in relation to the Group’s strategic review and agreed sale” to Ratcliffe. Further fees are set to be included in future financial results.
United said that was on top of a $31.5 million fee to U.S. investment bank Raine Group, which oversaw the deal.
Ratcliffe paid $1.3 billion for his minority stake and made an added investment of $200 million. United has said Ratcliffe intends to invest a further $100 million by the end of the year.
While his arrival has been warmly greeted by United fans, large sections of supporters have long campaigned to drive the Glazers out completely. Many were angered by the level of debt placed on the club as part of the late tycoon Malcolm Glazer’s buyout in 2005 for 790 million pounds (then about $1.4 billion).
Relations have not improved as a result of the team’s declining performances on the field, with United failing to win a league title since former manager Alex Ferguson retired in 2013.
The latest figures showed United’s gross debt currently stands at more than $990 million, which includes the long-standing debt of $650 million and 266.8 million pounds ($341 million) as part of the club’s revolving credit facility.
United said it had achieved record second-quarter revenues of 225.8 million pounds ($288.84 million) and that it was on course for record revenues for the full fiscal year of between 635 million pounds ($812.30 million) to 665 million pounds ($850.75 million).
As part of his investment, Ratcliffe has assumed control of United’s soccer operations and has already started to make changes. Former Manchester City executive Omar Berrada has been hired as chief executive, while Newcastle sporting director Dan Ashworth is also a target.
Ratcliffe also wants to redevelop or rebuild United’s Old Trafford stadium and last week a task force was assembled to step up those plans.
“This is an exciting time at Manchester United following the completion of Sir Jim Ratcliffe’s investment, and we are all focused on working together with our new co-owners to drive the club forward and deliver success on the pitch,” said Chief Financial Officer Cliff Baty.
Comments
0 comment