£10m twist at Man United shows how bad things really are for Ineos amid £400m Real Madrid 'reality check'

The financial situation at Manchester United is not as bad as first feared, but Ineos keep taking blows.

Back in April, when Sir Jim Ratcliffe stated that Manchester United would go bust by the end of 2025, there was plenty of panic in the fanbase around what it might mean.

It was assumed that after United missed out on the £100m boost from Champions League football, things were only going to get worse. This is because many assumed that the United were on the edge of PSR disaster.

However, when the financial results from the past quarter dropped, it was revealed that United actually made a profit for the first time in years, demonstrating the good work Ineos has done to steady the ship.

Kieran Maguire said that United’s PSR troubles were exaggerated, and assuming the club spends responsibly and sells well, things should actually be fine from a financial standpoint at Old Trafford.

However, due to performances on the pitch, United are beginning to face impacts in terms of sponsorship revenue.

Photo by Robbie Jay Barratt – AMA/Getty Images

United’s revenue is set to stabilize this year; however, if performances continue to be poor over the coming years, it could all take a drastic turn. Already, United’s shirt sponsor deal is undervalued, with Snap Dragon paying more than they should be, which doesn’t bode well for future deals, including stadium sponsorship.

Manchester United revenue projections Credit: Adam Williams/United In Focus/GRV Media

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Now, United has lost its sponsorship deal with Marriott Hotels this summer, and finance expert Adam Williams has explained to United in Focus what this means for the club.

“I’ve seen the finance expert Stefan Borson suggest that United will likely lose about £10m in annual revenue from this deal – and that sounds about right to me.

“United’s total commercial income last season was £303m and, judging by the figures in their last quarterly report, they will surpass that figure this season, which will be a club record.

“There are a couple of ways of looking at this. On the one hand, you can see that they are hitting new heights commercially, and think that’s really impressive given that they are abysmal on the pitch. But on the other hand, you have to set that in context. It’s actually very rare these days that a ‘Big Six’ club doesn’t set a new commercial record each season. Everyone else’s growth in this metric is faster than Man United, and I think there’s a correlation there with their lack of success on the pitch.

“They were touching £300m a decade ago. They’ve barely grown. By now, if they had been challenging for titles, they’d be where Real Madrid are with £400m-plus. That’s a reality check for Ineos. It shows what they are dealing with – and doing a very poor job about it, in my view.

“The Marriott sponsorship at around £10m doesn’t sound like much when you see how much they earn across their sponsorship and retail operation, but it’s emblematic of a wider problem. Yes, Marriott are cutting costs and sponsorship is often one of the first areas a company will look to make savings in this situation. However, if they thought they were getting real value from the deal, they would have found a way to make it work.

“United aren’t as attractive a brand as they should be given their resources and their global reach. That’s a fact. They have lost the shine that consistently winning and competing at the highest level gives you. That’s going to be reflected in the leverage you have with sponsors and how much cash you can extract from them.

“They will probably be able to replace a sponsor in the hotel category quite easily, but they won’t make as much money from it as they should, in my view. That’s the malaise at Manchester United.”

Sustained struggles on the pitch for United were always going to eventually have an effect on revenue and club stature, with brands not as desperate to be associated with the club that finished 15th in the league, as a title-winning Red Devils side.

This simply means that United cannot afford another season in and around the relegation zone, and Ineos will be aware of the importance of a strong summer to build for next season.

United have already added Matheus Cunha to the ranks in a deal Jason Wilcox spoke glowingly of, as the Brazilian is the perfect signing for the club.

Now, United will hope to add both Bryan Mbeumo and Viktor Gyokeres to the side, which is a front-line that surely cannot fail.

Next season promises to be a great improvement, and it kind of has to be for the club to continue the return to prominence and to the revenue levels capable.

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