This 5-minute DIY works perfectly on any type of shirt that is cotton and not stretchy (if it has nylon or spandex in it the ripping will not end up like this.
I cut off the sleeves with scissors, and carefully started pulling out the threads. Depending on what kind of end result you want (clean or more grungy) you can decide if you want to pull out the threads or if you want to leave the sleeve like it is after being cut.
I added some golden studs to it and voilá! Ready. I'll post a whole outfit with the shirt later on today!