{"id":642743,"date":"2025-12-19T19:04:18","date_gmt":"2025-12-19T19:04:18","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/642743\/"},"modified":"2025-12-19T19:04:18","modified_gmt":"2025-12-19T19:04:18","slug":"sir-jim-ratcliffe-handed-125m-ineos-bailout-heres-what-it-means-for-man-united","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/642743\/","title":{"rendered":"Sir Jim Ratcliffe handed \u00a3125m Ineos bailout, here’s what it means for Man United"},"content":{"rendered":"\n

The last few years have been trying for Sir Jim Ratcliffe, with the Man United co-owner\u2019s estimated wealth almost halving since its peak in 2023.<\/strong><\/p>\n

In terms of its raw value, his \u00a31.25bn stake in Manchester United<\/a> is a relatively modest item in his portfolio. Even before we arrive at the real meat of his investment profile, the stake he owns in the Mercedes-AMG Petronas F1 team is still probably worth more.<\/p>\n

But it is Ineos, the chemicals firm that Sir Jim Ratcliffe<\/a> founded in 1998 and in which he has a 60 per cent stake, that is the jewel in his crown.<\/p>\n

For context, Man United<\/a> generated club-record revenue of \u00a3667m<\/a> in 2024-25. Ineos? Across the group\u2019s various businesses, they say they earned \u00a355bn in the last financial year, about 8,200 per cent more than the Red Devils.<\/p>\n

Fill in the blank <\/p>\n

Sir Jim Ratcliffe\u2019s Manchester United project will only succeed if ______<\/p>\n

\"\" <\/p>\n

\ud83d\udc47 Join the debate; share your insight. Use the comment button on the bottom left to have your say <\/p>\n

And yet, it is Ratcliffe\u2019s outpost on Sir Matt Busby Way<\/a> rather than his oil and gas rigs in the North Sea or his various chemical refineries dotted about the globe that garners the most press attention and scrutiny.<\/p>\n

The club is a passion project for the sport-obsessed 73-year-old, who bought about 25 per cent of United\u2019s Class A and B shares from the Glazer family<\/a> and various institutional investors.<\/p>\n

And while United are \u2013 whisper it \u2013 quietly creeping up the table under Ruben Amorim<\/a> this season, the Oldham-born businessman\u2019s time at Old Trafford so far has been a psychodrama that has uncovered and, in many cases, caused all sorts of underlying trauma at the club.<\/p>\n

Hundreds of staff unceremoniously fired, a 15th-place Premier League era nadir, an anointed manager and director of football dismissed, quixotic plans for a towering new stadium, and mutiny at the front and back of house, as well as in the stands.<\/p>\n

\"APhoto by Alex Livesey\/Getty Images<\/p>\n

It was never going to be easy. The Glazer family had been absentee landlords in Manchester for too long, allowing the stadium to decay, resentments among fans to metastasise, and a regressive footballing culture to set in.<\/p>\n

Time will tell whether the drastic measures imposed by Ineos over the last two years will pay off, but you certainly cannot accuse Ratcliffe of inaction.<\/p>\n

He has invested hundreds of millions of pounds and countless man hours into this project. <\/p>\n

But at a time when his core business is struggling, how financially sustainable really is his mission to restore United to greatness?<\/p>\n

Ineos get \u00a3125m government grant as business crisis continues<\/p>\n

Ineos\u2019 revenues are huge, yes, but the company\u2019s losses are mounting.<\/p>\n

In the last financial year, the company was in the red by \u00a3124m and had accumulated debts of close to \u00a39bn. Tariffs hit the company hard, while side ventures like the 4\u00d74 Grenadier electric offroad vehicle \u2013 another Ratcliffe passion project \u2013 have suffered from disappointing sales, product recalls and supply chain issues.<\/p>\n

Like United, the wider Ineos empire has shed hundreds of jobs in the last 12 months.<\/p>\n

Several reputable agencies have downgraded Ineos\u2019 credit rating, while Ratcliffe himself has bemoaned the political environment and green energy laws for the group\u2019s travails.<\/p>\n

Until recently, it looked like the company\u2019s only remaining chemical plant in Britain was about to close for good. But as has been widely reported, the government has stepped in with a \u00a3125m bailout, which it says will save 500 jobs.<\/p>\n

The outlook for Ineos remains bleak, however. Ratcliffe himself has said that the chemicals industry is on the brink of \u201ccatastrophic decline.\u201d<\/p>\n

If his premonition is correct, could Ratcliffe consider selling off some of his stake<\/a> in Ineos and instead plunge more resources into United?<\/p>\n

\u201cSuch is the size of Ratcliffe\u2019s issue, he wants a legacy,\u201d says University of Liverpool football finance<\/a> lecturer Kieran Maguire, speaking exclusively to United in Focus<\/strong>.<\/p>\n

\"InPhoto Illustration by Pavlo Gonchar\/SOPA Images\/LightRocket via Getty Images<\/p>\n

\u201cHe wants to be the man who turned Man United around, the boy from Failsworth who restored the club to its rightful place in the hierarchy. If that means that, from a cash point of view, he has to divest of part of Ineos, he would quite happily do that.<\/p>\n

\u201cHis main concern, however, would be getting maximum value out of the sale of Ineos, which would be difficult.<\/p>\n

\u201cMarket conditions aren\u2019t great, but Ineos is still a huge, multi-billion pound asset. And while it is a much bigger business than Man United, it doesn\u2019t generate the same cultural cachet as owning one of the world\u2019s top football clubs.\u201d<\/p>\n

What do Ineos\u2019 struggles mean for Man United?<\/p>\n

Unlike almost all of their rivals, United have the luxury of gigantic revenues that have insulated them from the worst consequences of a decade or near-perpetual failure on the pitch.<\/p>\n

However, the club has not been self-sufficient financially for some time, with cash injections from Ratcliffe<\/a> and, to a much lesser extent the Glazers, needed to cover operating costs. Debt, of course, has also risen as United have failed to bring home the bacon on the pitch.<\/p>\n

And for as long as United continue to miss out on the Champions League, it is likely that wages, transfer instalments, administrative expenses and other costs will continue to be funded at least in part by external investment.<\/p>\n

If Ineos \u2013 and, by extension, Ratcliffe \u2013 are suffering liquidity problems, it will make funnelling resources to United more difficult, especially given that it will likely be a decade or more before Ratcliffe can even begin to contemplate a return on investment.<\/p>\n

There are alternatives. One of Ratcliffe\u2019s other clubs, OGC Nice, are said to be for sale for just north of \u00a3200m. If that cash was extricated to Old Trafford, it would be a significant boost, although certainly not a silver bullet.<\/p>\n

Manchester United\u2019s multi-club network <\/p>\n

Should Ineos be making better use of United’s sister clubs? \ud83e\udd14<\/p>\n

\"Talking <\/p>\n

\ud83d\udc47 Join the debate; share your insight. Use the comment button on the bottom left to have your say <\/p>\n

In fact, that wouldn\u2019t have covered United\u2019s cash deficit in 2024-25, which was about \u00a3202m before adding back loans and Ratcliffe\u2019s cash injections.<\/p>\n

And so, while Ineos are by no means nearing collapse, a sustained downturn in performance could have very real consequences in M16.<\/p>\n

Join Our Newsletter <\/p>\n

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