Sir Jim Ratcliffe, a British billionaire, has reached an agreement to purchase a 25% stake in Manchester United for approximately $1.3 billion (£1.03 billion).
The Ineos Group, led by Ratcliffe, is set to assume control of football operations. Additionally, the 71-year-old is committing $300 million (£236 million) for future investments in the club's Old Trafford stadium.
This announcement follows the Glazer family, the current owners, revealing their consideration of strategic options 13 months ago.
The Glazers acquired the club for £790 million in 2005. The only other publicly known attempt, by Qatari banker Sheikh Jassim bin Hamad Al Thani, to purchase 100% of the club was withdrawn in October.
Manchester United has faced challenges on the field this season and hasn't secured a Premier League title since 2013, prompting regular criticisms against the Glazer ownership.
Ratcliffe, hailing from Manchester, serves as the chairman of the petrochemicals company Ineos and asserts his status as a "lifelong supporter of the club." Last year, he made an unsuccessful attempt to acquire Chelsea.
In a formal statement, Ratcliffe expressed, "Despite the club's commercial success and the presence of available funds for achieving top-tier trophies, this potential hasn't been fully realized in recent times. We aim to leverage the global knowledge, expertise, and talent within the broader Ineos Sport group to facilitate further advancements at the club. Simultaneously, we intend to contribute funds for prospective investments in Old Trafford."
He emphasized a long-term commitment, acknowledging the challenges ahead and affirming a dedicated, rigorous, and passionate approach. Ratcliffe highlighted collaboration with all facets of the club—board, staff, players, and fans—to propel Manchester United to its rightful place at the summit of English, European, and global football.
The club has noted that the deal is contingent on customary regulatory approvals and expressed optimism for a prompt completion. The ratification process, expected to span six to eight weeks initially, includes approval from the Premier League.
How will the deal work?
Ratcliffe has reached an agreement to acquire a 25% stake in the club's class B shares, primarily held by the Glazer family, who currently possess 69% of the club and control nearly all voting rights. Additionally, Ineos will potentially purchase up to 25% of the class A shares, which are publicly listed on the New York Stock Market and valued at $33 per share. This arrangement ensures that the Glazer family maintains a majority ownership in the club.
Assuming control over the sporting aspects of the club, Ineos will oversee both men's and women's football operations and academies. The deal grants Ineos two seats on both the Manchester United PLC and Manchester United Football Club boards. Pending necessary approvals, Ratcliffe will appoint John Reece, an Ineos shareholder, and Rob Nevin, chairman of Ineos Sport, to represent Ineos on the PLC board. On the UK club board, he will delegate his seats to Sir Dave Brailsford, former chief of British Cycling, and Jean-Claude Blanc, former executive of Juventus and Paris St-Germain.
Expressing their thoughts, United's executive co-chairmen and directors, Avram Glazer and Joel Glazer, highlighted Sir Jim and Ineos's substantial commercial expertise and financial commitment to the club. They emphasized the potential benefits of Ineos Sport, providing access to seasoned professionals skilled in leading elite teams. Ineos, which already owns French Ligue 1 club Nice and Swiss club Lausanne, boasts a diverse sporting portfolio, including the high-profile sailing team Ineos Britannia, led by Sir Ben Ainslie, with the aim of winning the 2024 America's Cup for Great Britain.
In addition, Ineos holds a five-year collaboration with the Formula 1 squad Mercedes, where it possesses a one-third stake in the team. Furthermore, Ineos assumed control of the British-based cycling team, Team Sky, in 2019.
The acquisition is being executed through 'Trawlers Limited,' a company owned by Ratcliffe. This entity draws inspiration from the renowned quote by former Manchester United striker Eric Cantona.
10 years of struggles
Supporters who oppose the continued involvement of the Glazers at Manchester United have staged numerous protests both inside and outside Old Trafford over the past 12 months. Those closely associated with the process had confidently predicted its conclusion by the end of the previous season.
Over the last decade, marked by the retirement of legendary manager Sir Alex Ferguson in 2013, the team has experienced on-field inconsistency despite substantial spending on transfers and the hiring and firing of several high-profile managers.
In the current season, under Dutch manager Erik Ten Hag, Manchester United continues to struggle, losing 13 out of 26 games in all competitions, standing eighth in the Premier League, finishing at the bottom of their Champions League group, and being eliminated from the EFL Cup.
The Manchester United Supporters' Trust (Must) conveyed that fans harbor mixed feelings about the recent developments, expressing "serious concern" about the ongoing role of the Glazers. Must also expressed a desire for Ratcliffe's stake to be more than 25%, questioning the viability of entrusting the core business to a minority shareholder.
Must emphasized the need for the club's owners and management to clarify the workings of the new structure, the direction of the new investment, and how it will benefit on-field performance. While acknowledging that this could be a potential step forward for Manchester United after challenging years, Must highlighted that with the Glazers still in charge, fans would remain skeptical and await tangible evidence of improvement.
Analysis
The initiation of the search for strategic alternatives effectively prevented former chief executive Richard Arnold from leading any changes. With his departure, the assessment will now be conducted by Brailsford and Blanc. The role of interim chief executive Patrick Stewart in this process remains to be seen.
Given the current situation, there are several issues to address. Despite Manager Erik ten Hag's belief that his team is on the right path, results suggest a different reality, corroborating information received by BBC Sport that indicates Manchester United tends to congratulate themselves on straightforward transfer deals while avoiding more challenging ones.
For instance, last summer, they acquired players like Casemiro from Real Madrid for £70m, as Real Madrid was willing to let him go. However, they were unable to secure Ten Hag's first choice, Frenkie De Jong. Similarly, this summer, they opted for Rasmus Hojlund from Atalanta instead of pursuing Harry Kane, deeming him too expensive and difficult to sign. Kane, the leading scorer in Europe's major leagues, contrasts with Hojlund, who is yet to score in the Premier League.
While Declan Rice has excelled for Arsenal, potentially influencing the title race, Manchester United signed Mason Mount, who was out of form before getting injured, and Sofyan Amrabat on loan from Fiorentina, struggling to secure a regular place in an unsuccessful team.
Addressing this perceived wastefulness in the transfer market is crucial. Manchester United has experienced a significant decline both on and off the pitch since Sir Alex Ferguson's heyday. Fans can only hope that, after previous disappointments under managers like Louis van Gaal, Jose Mourinho, Ole Gunnar Solskjaer, and now Ten Hag, this marks the genuine beginning of a sustained climb back to success.
How did Manchester United reach this point?
In January, Ratcliffe's company Ineos officially expressed interest, stating they had "formally put ourselves into the process." Both Ineos and Sheikh Jassim submitted their initial bids for United in February. The Qatari consortium emphasized their offer's intention to "return the club to its former glories."
Come March, both parties submitted revised second bids after a deadline extension at their request. Elliott Investment Management and Carlyle, prominent US-based entities, also joined the competition but were interested only in acquiring a minority stake. The potential sale progressed to a third round of bidding in April, with Thomas Zilliacus revealing his bid to purchase the club.
Despite entering a bid, Zilliacus opted not to submit another offer, citing his unwillingness to participate in what he deemed "a farce" and chose to maintain his earlier second bid. Following the 28th April deadline, the Glazer family did not respond. Still, there was growing confidence in the Ineos camp that their bid would succeed, as it was revealed that their offer placed a higher overall value on the club than Sheikh Jassim's bid, given that he was paying more for a smaller stake.
In May, Sheikh Jassim improved his bid with an offer closer to £5 billion for 100% ownership of United. This proposal aimed to clear the club's nearly £1 billion debt and included a separate fund for the club and the local community. However, Sheikh Jassim withdrew from the process in October after further negotiations broke down.
Ratcliffe had initially planned to buy the Glazers' 69% shareholding but later reduced it to a 'majority' stake. It was only when he further reduced it to 25% that the potential for an agreement gained traction.