Half of all marriages end in divorce but the success rate between football clubs and their owners is even lower – and Sir Jim Ratcliffe’s relationship with both Man United and OGC Nice is on the rocks.
The initial excitement surrounding Ineos at Old Trafford was fleeting. Sir Jim Ratcliffe has entered into a prominent football lineage, yet the situation resembles a complicated, long-distance relationship.
The Glazers, who have recently acquired wealth from the United States, have mismanaged the family assets, compelling Ratcliffe to liquidate Manchester United’s valuable resources and dismiss staff to replenish the financial reserves.
Meanwhile, the daily operations at the club have descended into chaos, with house manager Ruben Amorim striving to restore some semblance of order. While this analogy may be somewhat exaggerated, it effectively conveys the situation.
Since Ratcliffe acquired a 28 percent stake in the Red Devils in February 2024, the new ownership has unfolded more like a tragicomedy than a love story. Amorim’s team now faces a critical opportunity to turn potential failure into success in Bilbao in just over a week, as they prepare to face Tottenham in what is arguably the most significant United final in a generation.
The Europa League trophy, along with the Champions League qualification it would provide, could serve as a lifeline for United, enhancing both their reputation and financial standing this season.
A victory over Spurs at San Mames could alleviate their Profit and Sustainability Rules (PSR) challenges, lessen concerns regarding the Glazers’ debt, and augment Amorim’s transfer budget for the summer, all despite a historically poor performance in the Premier League this season.
At Ratcliffe’s other club, Ligue 1 outfit OGC Nice, the situation is completely inverted.
Despite being on track for their best league placing since Ineos’ takeover in 2019, Nice are facing financial disaster through no fault of their own.
Ratcliffe’s attentions meanwhile are fixed squarely on United.
Ligue 1 TV deal collapse is blessing in disguise for Man United co-owner Sir Jim Ratcliffe
“They are now going to do their own streaming service,” explains Maguire, “which will be observed with interest by the Premier League and others here.
“They will be looking to see what works and what doesn’t. I don’t think you want to be first mover here – let someone else do it and make the errors. Then, copy it with the bad bits removed yourself.
“Regardless, though, this is clearly a disaster for Nice and for French clubs in general.”
How will Nice sale affect Man United?
Ratcliffe’s rapport with the Nice supporters has deteriorated, as fans are understandably frustrated by being regarded as a secondary concern to Ratcliffe’s primary focus in Manchester.
Maguire suggests that given the significant time and financial commitment Ineos has made to Nice, a complete separation might be the most beneficial outcome for both sides.
Specifically for United, the author of the Price of Football foresees that the sale could pave the way for new opportunities: “There are numerous issues to address at United, and it could be argued that all efforts should be directed towards revitalizing that club.”
“Therefore, having Nice as a distraction isn’t ideal. Ratcliffe has lots of distractions at present. His other sports investments have not necessarily been successful. Ineos itself has broader operational issues that it has to deal with too.
“Running two football clubs might mean they are spreading themselves too thin. I think in that sense it could completely change the way he looks at United post-sale.
Red Devils abandoning multi-club model
The multi-club model, which involves consolidating multiple football clubs under a single ownership structure, has become the preferred strategy for many prominent investors in the sport today.
More than fifty percent of the clubs in the Premier League are affiliated with some type of multi-club network. Nevertheless, Maguire contends that the advantages of this model—often highlighted by its proponents as facilitating player development, resource sharing, and cost efficiency—are exaggerated.
“The benefits of the multi-club operation look really good on PowerPoint, but forget what the eggheads say, I can’t think of a single successful multi-club network in practical terms,” he says.
“Maybe Red Bull, but we don’t know how successful that has been because the football clubs get folded into the Red Bull accounts as a whole.
“I think a lot of clubs have followed the crowd here when the benefits are dubious.”
Ineos’ £200m OGC Nice takeover target: Is it achievable and what impact will it have on United?
For Ineos, securing an additional £200 million would be advantageous, particularly during a period when their primary revenue from the chemicals sector is under pressure. However, given the significant decline in their main income source and the overall skepticism surrounding football as a viable investment, achieving this valuation raises questions.
More critically, the implications for Ruben Amorim and the staff at United are uncertain. To provide context, the 2021 acquisition of Newcastle United was valued at £305 million, while Dan Friedkin’s purchase of Everton last December pegged the club’s worth at approximately £450 million.
In comparison, OGC Nice’s financial performance pales in relation to these clubs, and its global brand presence is considerably less prominent. Although none of these teams are currently profitable, the potential for growth in the Premier League is substantial.
Many industry experts consulted by UIF express doubt regarding Ineos’s ability to substantiate their £200 million valuation. Nevertheless, any proceeds from the club’s sale could ultimately benefit United. As Maguire notes, ‘Liquidity is currently limited for Ratcliffe, and having access to available capital would be beneficial for Ineos.’
While cash flow remains a challenge for United, it is essential for them to secure funds to support summer expenditures. The club anticipates a robust performance from its core operations this season, yet much of the anticipated revenue will be offset by operational losses.
Consequently, United’s summer spending may hinge on Ratcliffe’s capacity to cover these losses, with a substantial sum from the Nice sale potentially reinvested into United through either equity offerings or low-interest loans.
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