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Ratcliffe needs a United victory (or does he?)

Sir Jim Ratcliffe, the Monaco-based billionaire behind chemicals empire Ineos has been fighting twin problems in business and sport. Ineos has struggled with a sector-wide downturn, linked to the faltering health of the global economy and international energy prices.

And Manchester United, the football club that boyhood fan Ratcliffe bought a huge stake in last year, sits in 16th place in the Premier League as this season wraps up, two spots above relegation. It’s on course for its worst finish since 1975.

Despite all that, Ratcliffe’s United has a shot at making it to Europe’s top football competition if it beats Tottenham Hotspur this evening. Win the Europa League final on Wednesday and United will qualify for the Champions League. A victory would salvage what has been a disappointing first season of ownership.

 Ratcliffe joined a club struggling to recover its mojo and promised a revival. That hasn’t materialised so far. The club’s troubles on the pitch have been compounded by financial issues that have only worsened since Ratcliffe joined.

United’s decision to give previous manager Erik ten Hag a new contract last summer only to fire him a few months later cost about £21mn. That came after a five-year spell of consecutive losses totalling more than £370mn. 

Earlier this year, the club said up to 200 people would be made redundant, bringing the total number being let go under Ratcliffe to 450 people, or a third of the workforce. Less than a month later, Ratcliffe unveiled plans for a new £2bn stadium. Suffice to say, that didn’t go down well with fans, who questioned the wisdom of the outlay given the state of the club’s purse and the lay-offs.

Ratcliffe will be hoping the club wins today. There’s nothing like a trophy to keep the naysayers at bay. Lose, and United will miss out on lucrative broadcasting income and a shot at competing with Europe’s best teams.

But by a strange quirk of its bond covenants, a loss could save United more than £700mn. This scenario relies on United’s rolling 12-month ebita falling below £65mn. The closest it came to that was in 2022, when ebita reached £81mn.

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