Stefan Borson reacts to Man United insider’s sensational reveal
Manchester United co-owner Sir Jim Ratcliffe has been looking to cut costs at Old Trafford following suggestions the club could go bust.
The INEOS chief purchased a 27.7 per cent stake in the Premier League side in February last year after agreeing a £1.25billion deal with the Glazers.
Ratcliffe has now increased his stake in Man United to 28.9 per cent after injecting £238million into the club.
The Guardian reported on 12 February club insiders have suggested United would have run out of cash had it not been for the British billionaire’s investment.
The newspaper said Ratcliffe believes his decision to cut about 200 more jobs at Old Trafford is necessary to help the club avoid going bust.
Former Man City financial adviser Stefan Borson exclusively told Football Insider United’s situation isn’t a surprise to INEOS despite club chiefs suggesting it is.
The Manchester giants sent a letter to fan groups last month warning them the club are at risk of breaking the profit and sustainability rules (PSR), with top-flight sides only permitted to make £105million of losses over a rolling three-year period.
Man United are one of the world’s most profitable clubs despite INEOS claims
Borson revealed United are one of the most profitable clubs in the world at the earnings before interest, taxes, depreciation, and amortisation (EBITDA) line.
He told Football Insider: “They wouldn’t have run out of cash.
“They would have raised money from somewhere. If the point is that on their run rate that they had, they would have needed to raise money, then I agree with them.
“I wrote as much in 2023 about the level of cash that was there, the burn rate that they had, the very high expenditure on interest, which we all know about, and the fact that they were not succeeding on the pitch.
“Clearly, if you’re a club like Manchester United, where the whole setup of the club is to be a Champions League club, and actually one that probably gets to the quarter-finals, that’s what their cost base reflects or has reflected in the past.
“If for a season or two seasons you don’t do that, then of course it’s going to have an impact on the available cash because you’re going to have a hole in your profit and loss account of £60-100million.
“It’s inevitable that they would need to raise cash. Almost all of the Premier League clubs have needed to raise cash, so that in itself is not particularly unusual.
“United are not a loss-making business at th EBITDA line. They are actually one of the most profitable clubs in the world, if not the most.
“Furthermore, none of the financial performance of the club is a surprise to INEOS despite them trying to make it out that it is.”
Jim Ratcliffe to demand Man United shares to finance new stadium project
United’s latest accounts for 2023-24 revealed they generated a club-record revenue of £661.8million despite recording a net loss of £113.2million.
Ratcliffe is currently looking to source the necessary funds for the club’s regeneration project as they consider plans to either expand Old Trafford or build a new facility altogether.
Football Insider revealed on 13 February Ratcliffe would demand more shares in United to help fund the stadium redevelopment.
The Glazers, who bought a 98 per cent stake in 2005, have since seen their shareholding diluted to 48.9 per cent after taking a backseat at Old Trafford.
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