Sir Jim Ratcliffe’s overhaul of Manchester United shows few signs of slowing down, and the billionaire has put his money where his mouth is since acquiring a minority stake in the football club last year.

Manchester United posted its annual earnings this week, detailing a ￡113.2 million loss as costs rose faster than revenues.

While the earnings leave the club at risk of breaching crucial financial sustainability rules, they also highlight the hit Ratcliffe has taken to his wallet in an attempt to turn around the fortunes of his boyhood club.

The Ineos boss invested ￡200 million in the club in addition to the ￡1.3 billion he spent to acquire 27.7% of the team. He intends to invest another ￡100 million in the club by the end of the year.

Ratcliffe’s review

Ratcliffe, the co-founder and CEO of petrochemicals giant Ineos, isn’t one to take half-measures.

Since acquiring a minority stake in Manchester United last year, the billionaire has invoked a massive overhaul of the club’s football operations, installing a new top team including CEO Omar Berrada, formerly of cross-city rival Manchester City, new sporting director Dan Ashworth, and technical director Jason Wilcox.

The strategic review that underpinned that overhaul cost the club up to ￡47.8 million in one-off payments last year, which the club referred to as “exceptional items” in its annual report.

It’s unclear how those figures are broken down, but they could include severance packages for laid-off employees, compensation packages for the former employers of new recruits, and legal and consulting fees paid out to third parties, including Interpath Advisory, a KPMG spin-out, which performed a cost review for the club.

That ￡47.8 million figure also includes costs related to the majority-owner Glazer family’s share sale to Ratcliffe and restructuring costs.

A representative for Man United didn't immediately respond to a request for comment.

Manchester United expects to make cost savings of between ￡40 million and ￡45 million a year due to its restructuring.

“Beginning in the third quarter of fiscal 2024, the club commenced a business transformation plan to unlock operational efficiency with the ultimate goal of improving the club’s financial sustainability and maximize the resources available to improve football operations,” the club said.

The club reduced its headcount by 250 people over the Summer as part of its cost-cutting program.

Ratcliffe gave those who remained an ultimatum after noticing a 20% dip in email traffic on mostly remote Fridays: come into the office full-time or seek alternative employment.