For roughly $1.3 billion, British billionaire Sir Jim Ratcliffe has agreed to purchase a 25% share in Manchester United. The football operations will be taken over by Ratcliffe’s Ineos Group.
The 71-year-old will also contribute $300 million towards additional improvements to the team’s Old Trafford stadium. The Glazer family, the club’s owners, announced 13 months ago that they were thinking of selling to “explore strategic alternatives” before making this announcement.
For £790 million, the American family purchased the team in 2005.
United has had difficulty on the pitch this year and hasn’t taken home the Premier League title since 2013, but there have been frequent demonstrations against the Glazer ownership.
Ratcliffe, who was born in Manchester, serves as chairman of the petrochemicals company Ineos and declares himself to be a “lifelong supporter of the club”. He attempted, but was unable, to purchase Chelsea last year.
“Whilst the commercial success of the club has ensured there have always been available funds to win trophies at the highest level, this potential has not been fully unlocked in recent times,” he said in a statement. “Our shared ambition is clear: we all want to see Manchester United back where we belong, at the very top of English, European and world football,” he added.
The club expresses that, the deal, they are “hopeful it will be completed as soon as possible”, but it is “subject to customary regulatory approvals.”
Ratcliffe has committed to purchasing up to 25% of the club’s class A shares, which are traded on the New York Stock Exchange, and 25% of its class B shares, which are primarily owned by the Glazer family, who own 69% of the company and nearly all of the voting rights. Each share is worth $33 in value.
Thus, the Glazer family will continue to own a sizable portion of the team.
As a result of assuming sporting control at the club, Ineos will be in charge of the football operations and academies for both men and women. Additionally, they will receive two seats on the boards of both the Manchester United Football Club and PLC.
Ratcliffe will assign his seats on the PLC board to Ineos shareholder John Reece, subject to the required approvals.
