Sir Jim Ratcliffe’s deal to buy a 25% stake in Manchester United has been given the green light by the Football Association and Premier League. The British billionaire’s purchase, valued at around $1.3 billion, will see his Ineos Group take control of the club’s football operations, while the Glazer family retains a majority stake.
Premier League approval is contingent on the completion of the deal, which is expected to happen once the share offer is closed on Friday night in the United States. In addition to obtaining Premier League approval, Ratcliffe, 71, has also signed the league’s owners’ charter.
This deal is particularly significant as it is the first to be agreed upon under the Premier League’s updated owners’ and directors’ test, which was approved by member clubs in March 2023. The test includes a review conducted by an independent oversight panel.
Ratcliffe’s agreement, which was reached on Christmas Eve, also includes a provision of $300 million for future investment in Manchester United’s iconic Old Trafford stadium. As part of the deal, the businessman will acquire 25% of the club’s class B shares, predominantly held by the Glazer family, who currently own 69% of the club and possess almost all the voting rights. Ratcliffe will also have the option to purchase up to 25% of the club’s class A shares, listed on the New York Stock Market and valued at $33 each.
An update from the US Securities and Exchange Commission (SEC) revealed that the deadline for holders of class A shares to tender them for sale has been extended until Friday. So far, 36.7% of class A shares have been tendered, surpassing the 25% that Ratcliffe has agreed to acquire.
Taking on sporting control at Manchester United means that Ineos will oversee all aspects of the men’s and women’s football operations, including the academies. In addition, they will secure two seats on both the Manchester United PLC and Manchester United Football Club boards.
While awaiting final approval, Ratcliffe has already visited Old Trafford and the club’s training ground on multiple occasions. According to BBC Sport, the process is progressing positively towards completion.
The Glazer family originally purchased Manchester United in 2005 for £790 million. However, in November 2022, they expressed their intention to explore strategic alternatives, indicating their willingness to consider a sale.
In conclusion, Sir Jim Ratcliffe’s acquisition of a 25% stake in Manchester United has received approval from the Football Association and Premier League. This landmark deal, which is the first to be agreed upon under the Premier League’s updated owners’ and directors’ test, will see Ineos Group take control of the club’s football operations. With the completion of the share offer expected soon, Ratcliffe’s investment in the club, coupled with his commitment to future investment in Old Trafford, marks an exciting new chapter for Manchester United.