December 30, 2024

By Mick Ruby

Manchester United and the Glazer family have agreed to sell up to 25% of their shares to INEOS and Sir Jim Ratcliffe baring approval from Premier League owner fit and proper test and New York Stock Exchange. The Parties struck an agreement announced by the club in a statement 24th December. According to our analysis not a takeover, This is more likely to translate to a personal investment and loan by Sir Jim Ratcliffe to give the glazers 1.3 billion and in return he gets class b and a shares plus 2 seats on the board.

It seems like there are some interesting developments regarding Manchester United's ownership and potential investment. The reported agreement between the Glazer family and INEOS, with Sir Jim Ratcliffe's involvement, could have significant implications for the club's financial structure and future.

Here's a breakdown of the key points from your information:

Ownership Stake and Investment:

The Glazer family and INEOS, led by Sir Jim Ratcliffe, have agreed to a deal where up to 25% of Manchester United's shares would be sold.

The understanding is that this might not be a complete takeover but rather a personal investment and loan arrangement. Sir Jim Ratcliffe is reportedly providing the Glazers with $1.3 billion.

In return, Sir Jim Ratcliffe will receive Class B and A shares and two seats on the board.

Financial Infusion:

A reported $300 million from INEOS and Sir Jim Ratcliffe is said to be allocated towards infrastructure. However, your analysis suggests that this might be more about acquiring additional shares than directly benefitting the club.

Financial Implications:

Manchester United currently faces a significant financial debt estimated at around $1 billion.

The concern is raised that the 25% investment by Sir Jim Ratcliffe might not directly benefit the club, potentially impacting Financial Fair Play and hindering the club's activities in the transfer market.

Ownership Dynamics:

The contract reportedly includes clauses indicating that this investment is not an exclusive pathway to 100% ownership for Sir Jim Ratcliffe.

There's a first refusal right for Sir Jim Ratcliffe at a premium of $33 per share, allowing him to match any competing bids in the future.

Collaboration and Questions:

You express skepticism and raise questions about potential collaboration between Sir Jim Ratcliffe and the Glazer family to achieve a higher overall evaluation sell price of the club, estimated at $8-10 billion.

It indeed seems like a complex deal with various financial intricacies and potential long-term implications. The involvement of other potential bidders in the future, as mentioned, adds an interesting dynamic to the situation. The clarity on the motives and outcomes may become clearer as more information is revealed over time.

ir Jim Ratcliffe would be obliged to sell his shares in Manchester United if the Glazers agree to a full sale of the club after 18 months.

Ratcliffe has reached an agreement to buy a 25 per cent stake in the club for £1.3bn, which will become 29 per cent when his £250m investment into the infrastructure at United in converted into more shares.

It will now take an estimated six to eight weeks for the Premier League to approve Ratcliffe’s investment, and if the Glazers decide to pull the plug on the deal in the meantime they will have to pay Ratcliffe $48m plus an amount not to exceed $18m to cover his expenses within three business days as a termination fee.

Ratcliffe also has the first option to buy if the Glazers, whose stake will be reduced to 49 per cent of the club, are selling more of their shares within a year. But if the Glazers conclude a full sale of the club in 18 months time, the Ineos boss would be obliged to sell his shares for $33 each, the price he paid for them, in what is known as a ‘drag-along’.

The Telegraph revealed on Wednesday that Man Utd ‘could not sack Erik ten Hag or make a significant signing without consulting Ineos’.

The 71-year-old United fan will receive two seats on the board of the club, which he will delegate to former Juventus CEO Jean-Claude Blanc and the cycling boss Sir Dave Brailsford, and two on the board of the PLC, which will go to Ineos chief financial officer John Reece and Rob Nevin, the chairman of Ineos Sport.

Football Insider claim that Ratcliffe is currently considering whether to expand Old Trafford to hold 90,000 fans or build an entirely new venue, with senior figures believing the process will take up to eight years.

Neither option has been ruled out by Ineos, who have predicted that a brand new stadium would cost around £2bn.

That would mean United could remain at their current home rather than being re-based for two years or more, which would be the case if they opted for the expansion of Old Trafford.

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