Sir Jim Ratcliffe may be adding his initial £250 million Manchester United investment to the club’s debt so that he is eventually repaid in the long run.
That is according to finance expert Kieran Maguire, who has told Football Insider that Ratcliffe’s investment may add to the £1billion-plus existing debt at Old Trafford.
Maguire has suggested that Ratcliffe’s infrastructure investment may end up being repaid by the club depending on the details of the deal.
“If Sir Jim Ratcliffe does put money into Manchester United then that will be ring-fenced and £245million for somebody worth eight figures isn’t a significant proportion of their wealth,” Maguire told Football Insider.
“As always, the devil’s in the detail and seeing the small print of the arrangement between the Glazers and Ratcliffe is far more important than focusing on just the numbers.
“People have been diverted and distracted by the 25 per cent ownership in terms of shares.
“It’s the rights that go with those shares in terms of operational control that are the key issues.
“And it also should be noted that if there’s any money going into the club – if that goes in the form of debt that debt can be repaid.“
Ratcliffe’s deal to acquire 25% of Manchester United was announced on Christmas Eve. It will now take up to 6-8 weeks for the deal to be ratified by the Premier League.
It is understood that Ratcliffe has put aside money to be investment into the club’s infrastructure including their Carrington training complex, which like Old Trafford, has been subject to criticism after falling behind the standards met by other clubs in the Premier League.
United’s current debt levels are beyond the £1bn mark, as per The Athletic, and this is something fans have wanted addressed for the past 18-years since Malcolm Glazer’s controversial takeover.
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