Manchester United have announced that they have agreed a deal with British billionaire Sir Jim Ratcliffe to acquire a minority stake in the club.
Ratcliffe, chairman and founder of petrochemical company INEOS, has agreed to take a 25 percent stake in United from the Glazer family, which is diluting its stake in the Premier League team rather than leaving. The 71-year-old is buying an equal split of Class B and Class A shares at $33 (£26) each for a total price of $1.3 billion.
The deal will see INEOS take control of United's football operations from Ratcliffe. A club statement said: “This includes all aspects of men’s and women’s football operations and academies, as well as two seats on the board of Manchester United PLC and the boards of Manchester United Football Club.”
Jean-Claude Blanc, CEO of INEOS, and Sir David Brailsford, the former managing director of British Cycling and now sporting director of INEOS, will join United's board.
As reported in November, Ratcliffe will commit $300 million (£245 million) of his personal wealth to a “future investment” by the club, according to a United statement. This investment is in addition to Ratcliffe's 25 percent stake. That $300 million is essentially a down payment for infrastructure upgrades. INEOS is keen to begin a process to redevelop United's Old Trafford stadium and demonstrate that additional funds will be spent on facilities.
“As a local resident and lifelong supporter of the club, I am delighted that we have been able to agree a deal with the Manchester United board that will give us management responsibility for the club’s football operations,” Ratcliffe said.
“While the club’s commercial success has ensured that there have always been resources to win trophies at the highest level, this potential has not been fully realized in recent times. We will bring the global knowledge, expertise and talent of the wider INEOS Sport group to drive the further improvement of the Club, whilst also providing funding to enable future investment at Old Trafford.
“We are here for the long haul and know that there are still many challenges and hard work ahead of us, which we will tackle with consistency, professionalism and passion. We are committed to working with everyone at the club – the board, staff, players and fans – to move the club forward.
“Our common goal is clear: we all want to see Manchester United back where we belong: at the top of English, European and world football.”
Ratcliffe visited United in March (Peter Byrne/PA Images via Getty Images)
United interim CEO Patrick Stewart addressed the club's staff in a video call from Old Trafford shortly before Ratcliffe's investment was announced.
Stewart told staff that Brailsford and Blanc will spend time at the club next month. He added that good relationships were already being established with those from INEOS joining United.
He also told the call that United were trying to fully define how football operations will run over the next six weeks, with some of that already sorted out. Stewart was particularly pressured on this by Dominic Jordan, United's head of data science.
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The Athletic reported in October that Ratcliffe was moving closer to acquiring a minority stake in United, subject to ratification by the board. A deal in principle has now been agreed, but is still subject to all necessary regulatory approvals, including from the Premier League. This process is expected to take six to eight weeks and INEOS will have no formal decision-making powers during this period.
“We are delighted to have agreed this deal with Sir Jim Ratcliffe and INEOS,” said Avram and Joel Glazer. “As part of the strategic review we announced in November 2022, we are committed to examining various alternatives to improve Manchester United, with a focus on the success of our men's, women's and academy teams.
“Sir Jim and INEOS bring extensive commercial experience and significant financial commitment to the club. And through INEOS Sport, Manchester United will gain access to experienced, high-performance professionals with experience in building and leading elite teams both inside and outside of football. Manchester United have talented people across the club and our desire is to continue to improve at all levels to help our great fans achieve greater success in the future.”
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The Glazer family put the club on the market last November and a lengthy sales process saw fierce competition between Sheikh Jassim's Nine Two Foundation and Ratcliffe's INEOS empire.
However, none of the bidders met the Glazers' asking price of $8 billion (£6.31 billion), instead both parties valued the club at closer to $6.3 billion (£4.97 billion), and Representatives of Sheikh Jassim's bid claimed that in October, after further talks, the Qatari king had informed the American family that he was withdrawing from the process.
Ratcliffe visited the club in March with a delegation which included Brailsford. Ratcliffe's minority stake will give the billionaire sporting control of the club but deny fans a clean break with their unpopular owners.
The Glazer government has faced opposition from United fans since its inception due to the nature of the leveraged buyout in 2005, which loaned money to the club to enable the takeover.
United have remained in debt since then – their gross currently stands at £507.3m – while a similar amount has been paid out in interest to clear the debt over the same period. The Glazers have also paid around £165 million in dividends during their tenure, mostly to themselves.
Anti-Glazer protests have occurred regularly at Old Trafford over the years, particularly since the announcement of a possible sale of the club last year.
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Anti-glazing protests at Old Trafford earlier this season (Simon Stacpoole/Offside/Offside via Getty Images)
Who is Sir Jim Ratcliffe?
Ratcliffe was born in the north west of England and grew up on a council estate in Oldham.
He says he is a lifelong Manchester United fan and that he was in the stands when Sir Alex Ferguson's side won the treble by beating Bayern Munich in the 1999 Champions League final in Barcelona.
Ratcliffe has previously tried to buy Chelsea and Newcastle United.
The INEOS football portfolio also includes French club Nice, Swiss club FC Lausanne and RC Abidjan in Ivory Coast.
INEOS's core business is global petrochemical production, which generates $65 billion (£82.3 billion) annually, while Ratcliffe's personal net worth fell from $6.075 billion to $29.6 billion between 2022 and 2023, according to the Sunday Times Rich List 2023 billion US dollars rose.
He owns 60 percent of INEOS, with the remaining share split between his two business partners Andy Currie and John Reece, who came 13th and 14th in the Rich List, behind Ratcliffe in second place.
What's happening now?
This question is on everyone's lips. So here's what we know.
In return for his investment, Ratcliffe wants control and responsibility for sporting decisions at Old Trafford. Essentially, he wants to transform the football side of this football club in the spirit of INEOS.
United's on-field success has evaporated since Ferguson's resignation at the end of the 2012/13 season. The Glazers are to blame, and ultimately the lack of cutlery has reduced the value of their assets.
Ratcliffe has come along and offered to pay a premium to own 25 per cent of the company and clearly feels he can run the sporting operations better.
Could someone leave and be replaced?
The Athletic reported in October that Richard Arnold was expected to leave his role as United chief executive once Ratcliffe's minority stake went through – and United confirmed his resignation on November 15.
Arnold had held the position since Ed Woodward took over in February 2022, but Patrick Stewart, the general counsel and board member, has now taken on the role on an interim basis.
Blanc, the former Juventus chief executive who left a senior position at Paris Saint-Germain last December to oversee the entire INEOS Sport portfolio, has joined the board and is considering replacing Arnold permanently.
Ratcliffe and Brailsford are also considering options for the sporting director appointment. Paul Mitchell was touted as the leading candidate. Any new addition would cast doubt on the future of current director of football John Murtough, who has held the post since 2021.
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(Top photo: Getty Images)