Before the Glazers’ takeover, Manchester United fans paid little attention to the club’s finances.
United was virtually a debt-free club and was accustomed to buying big stars without much concern. Yet, once the Glazers gained ownership of the club and they brought humongous debts, the financial activities then concerned only the debt repayment.
Some analysts have estimated that United has haemorrhaged over £1 billion simply in paying off this debt, which remains today.
Sheikh Jassim vs. INEOS
When Sheikh Jassim showed intention in acquiring Manchester United, one of his conditions was to pay off the clubs’ debts.
With INEOS now involved, the debt is still there, and each financial deficit puts additional pressure on the team.
The latest in the transfer market news shows Manchester United in shocking bad books, with The Sun later reporting that the club’s share price had plunged by almost £200 million in about two weeks.
Contributing Factors to Financial Loss
As of August 31, Manchester United valued £2. as high as twenty-five billion but dropped down to £2. £6 billion by mid-September, and the organisation had lost £190 million.
This decline was due to two main reasons. First, the club announced a staggering £113.2 million net loss for the last financial year.
Secondly, Cristiano Ronaldo’s worsening comments about Manchester United recently during an interview with Rio Ferdinand on the FIVE podcast made it even worse.
These remarks from Ronaldo, as well as similar comments made before his departure, raised concerns among investors and impacted the club’s share price.
Glazers and INEOS now rely on a successful season as they seek to rebuild the financial confidence to increase the value of Manchester United.
