Home » Sir Jim Ratcliffe’s additional investment lifts Manchester United out of FFP purgatory

Sir Jim Ratcliffe’s additional investment lifts Manchester United out of FFP purgatory

by Vatsal Gupta
Sir Jim Ratcliffe

Manchester United’s stumbles in the transfer market have led the club to this position where they are scraping the barrel to strengthen the team in January.

United have already been fined by UEFA for breaching Financial Fair Play rules and without Sir Jim Ratcliffe’s intervention, more could have been coming.

However, The Times reports that not only has the INEOS investment lifted United’s worries for the time being, they have actually increased their spending power massively.

Under FFP rules, clubs are allowed to make a loss of £15 million over three years, which is increased to £105 million if the additional £90 million comes from capital injection by the owners.

However, as the Glazers never invested even a penny of their own into the club, United easily hit the £15 million mark, limiting their spending.

Now, with Sir Jim Ratcliffe committing an additional £235 million of his own into the club beyond his initial outlay for a 25% stake, it will soothe the FFP worries.

As per the official documents this additional amount is to be used for redevelopment and/or upgradation of facilities around Old Trafford and the stadium itself.

However, it is not a deal-breaker, and this amount can be used for whichever purposes it is deemed fit at the time.

Ultimately, it is a capital injection by the owner which automatically raises the loss limit for the club to the higher benchmark of £105 million.

While the January window might have come too soon for this capital to have any major impact on the club’s ability to navigate the market, activity can be expected in the summer.

Furthermore, with Sir Dave Brailsford already starting work at the club, the transfer window before the start of the next season will be the one that truly blows the winds of change at United.

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