Manchester United's debt has risen to £714m, according to the club's latest accounts from November, despite Sir Jim Ratcliffe injecting £240m after purchasing a 27.7% stake in February. The Ineos chief has implemented severe cost-cutting measures, including shedding around 250 jobs and ending Sir Alex Ferguson's £2m-a-year ambassadorial role, amid fears the club is on a fast-track to bankruptcy.
The financial woes stem from the Glazer family's leveraged takeover in 2005, which loaded approximately £500m of debt onto the club. That debt has never been paid off, and current borrowings stood at £232.3m in November, up £36.5m from June. The club has also posted a £300m loss over the past three years, with Ratcliffe warning of a stressed balance sheet and potential cash shortfall.
Despite the injection, Ratcliffe approved a £200m outlay on five players in his first summer market, backing then-manager Erik ten Hag. However, Ten Hag was sacked in October, costing £10.4m in compensation, while his replacement Ruben Amorim and his coaching staff cost a further £11m. Sporting director Dan Ashworth departed after just five months, despite Ratcliffe having paid Newcastle millions in compensation for his appointment.
The club's transfer spending since Sir Alex Ferguson retired in 2013 has exceeded £1bn, with many players failing to generate a profit on resale. Paul Pogba, who cost a British record £89.3m in 2016, returned to Juventus on a free transfer in 2022. In contrast, local rivals Manchester City have built a successful on-field and business model, generating over £500m for squad investment this summer.
Ratcliffe's cost-cutting has drawn criticism, with reports he ended the annual £100 Christmas bonus for administrative employees, replacing it with a £40 M&S voucher. Former players Bryan Robson, Andy Cole and Denis Irwin have also seen their ambassador salaries reduced, while long-serving logistics head Jackie Kay is set to lose her job. The club's 12-year title drought mirrors its off-field decline under the Glazers' mismanagement.
