Premier League Approves Sir Jim Ratcliffe’s Deal to Buy Stake in Manchester United
In a groundbreaking move for Manchester United, British billionaire Sir Jim Ratcliffe’s deal to acquire a 25% stake in the club has been approved by the Premier League. This deal, worth a staggering $1.3 billion (£1.03 billion), is still awaiting approval from the Football Association. While the Glazer family, the current owners, will retain a majority stake in the club, Ratcliffe’s Ineos Group will take control of football operations.
The Premier League’s approval is contingent upon the completion of the transaction. “The Premier League now awaits confirmation of the transaction’s completion,” stated the league in an official statement. Additionally, it was revealed that Ratcliffe, aged 71, has signed the owners’ charter, further solidifying his commitment to the club.
This deal marks the first agreement to be made under the Premier League’s revised owners’ and directors’ test, which was unanimously approved by member clubs in March 2023. As part of this updated test, an independent oversight panel conducts a thorough review before granting approval. Ratcliffe’s deal was officially agreed upon on Christmas Eve and includes an impressive $300 million (£236 million) for future investments into Manchester United’s iconic Old Trafford stadium.
As for the specifics of the deal, Ratcliffe has agreed to purchase 25% of the club’s class B shares, which are predominantly held by the Glazer family. These shares not only constitute 69% of the club but also encompass nearly all of the voting rights. In addition, Ratcliffe has the option to acquire up to 25% of the class A shares, which are listed on the New York Stock Market and are valued at $33 each.
In an update released by the US Securities and Exchange Commission (SEC) on Monday evening, it was announced that the deadline for holders of class A shares to tender them for sale has been extended until Friday. Remarkably, 36.7% of class A shares have already been tendered, surpassing the agreed-upon 25% that Ratcliffe is set to purchase.
With the acquisition of sporting control, Ineos will be responsible for overseeing the men’s and women’s football operations, as well as the academies. Furthermore, they will secure two seats on both the Manchester United PLC and Manchester United Football Club boards. Ratcliffe, who has made multiple visits to Old Trafford and the club’s training ground, eagerly awaits the final approval of the deal, which is reported to be progressing positively.
It is worth noting that the Glazer family initially acquired Manchester United for £790 million in 2005. However, in November 2022, they expressed their intentions to explore strategic alternatives, indicating a potential sale. Ratcliffe’s deal signifies a significant milestone in the club’s history, as it opens up new possibilities for growth and development under Ineos’ guidance.
As Manchester United fans around the world eagerly anticipate the completion of this historic deal, it is certain that Ratcliffe’s involvement will usher in a new era for the club. With a billionaire backing their football operations and significant investment earmarked for Old Trafford, the future looks incredibly promising for one of the world’s most iconic football clubs.