Manchester United confirm Sir Jim Ratcliffe’s minority investment

Manchester United have announced they have agreed a deal for British billionaire Sir Jim Ratcliffe to purchase a minority stake in the club.

Ratcliffe, who is chairman and founder of the petrochemical company INEOS, has agreed to take a 25 per cent stake in United from the Glazer family, who are diluting their shares in the Premier League side, rather than leaving. The 71-year-old is buying an even split of Class B + Class A shares at $33 (£26) each for an overall cost of $1.3bn.

The deal will see Ratcliffe’s INEOS take control of the football operations at United. A club statement said: “This will include all aspects of the men’s and women’s football operations and academies, alongside two seats on the Manchester United PLC board and the Manchester United Football Club boards”.

INEOS CEO Jean-Claude Blanc and Sir David Brailsford, the former British Cycling executive who is now INEOS’ director of sport, will join United’s board.

As reported in November, Ratcliffe will provide $300million (£245m) of his personal wealth for what a United statement says will be “future investment” at the club. This investment is in addition to Ratcliffe’s 25 per cent stake. This $300m is essentially a down payment on infrastructure upgrades, with INEOS eager to start a process on how United’s Old Trafford stadium can be redeveloped, as well as a demonstration of additional funds to be spent on facilities.

“As a local boy and a lifelong supporter of the club, I am very pleased that we have been able to agree a deal with the Manchester United Board that delegates us management responsibility of the football operations of the club,” Ratcliffe said.

“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. We will bring the global knowledge, expertise and talent from the wider INEOS Sport group to help drive further improvement at the club, while also providing funds intended to enable future investment into Old Trafford.

“We are here for the long term and recognise that a lot of challenges and hard work lie ahead, which we will approach with rigour, professionalism and passion. We are committed to working with everyone at the club — the board, staff, players and fans — to help drive the club forward.

“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.”

United interim CEO Patrick Stewart addressed the club’s staff on a video call from Old Trafford shortly before Ratcliffe’s investment was announced.

Stewart told staff that Brailsford and Blanc will spend time around the club next month. He added that good relationships are already being built with those from INEOS who are joining United.

He also told the call that United are ⁠looking to fully define how the football operations will run over the next six weeks, with some of this already sorted. Stewart was pressed on this in particular by Dominic Jordan, United’s head of data science.

The Athletic reported in October that Ratcliffe was moving closer to purchasing a minority stake in United, subject to board ratification. A deal in principle has now been agreed but remains subject to receiving all necessary regulatory approvals, including from the Premier League. This process is likely to take six to eight weeks and in that period, INEOS will have no formal decision-making powers.

“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 committed to look at a variety of alternatives to help enhance Manchester United, with a focus on delivering success for our men’s, women’s and Academy teams.

“Sir Jim and INEOS bring a wealth of commercial experience as well as significant financial commitment into the Club. And, through INEOS Sport, Manchester United will have access to seasoned high-performance professionals, experienced in creating and leading elite teams from both inside and outside the game. Manchester United has talented people right across the club and our desire is to always improve at every level to help bring our great fans more success in the future.”

The Glazer family put the club on the market last November and a protracted sale process had been a two-horse contest between Sheikh Jassim’s Nine Two Foundation and Ratcliffe’s INEOS empire.

However, neither bidder met the Glazers’ asking price of $8bn (£6.31bn), with both parties instead valuing the club at closer to $6.3bn (£4.97bn), and representatives from Sheikh Jassim’s bid claimed in October that after further discussions, the Qatari royal had informed the American family that he was withdrawing from the process.

Ratcliffe visited the club in March with a delegation that included Brailsford. Ratcliffe’s minority stake will give the billionaire sporting control of the club but deny fans a clean break from their unpopular owners.

The Glazer reign has faced opposition from United supporters since its inception due to the nature of their leveraged buyout in 2005, which borrowed money against the club to make the takeover possible.

United have remained in debt ever since — their gross currently stands at £507.3m — while a similar figure has been paid out in interest to service the debt over the same period. The Glazers have also paid approximately £165m in dividends during their tenure, mostly to themselves.

Anti-Glazer protests have been a regular occurrence at Old Trafford over the years, particularly since the announcement of the club’s potential sale last year.

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 supporter and that he was in the stands when Sir Alex Ferguson’s side completed a treble by defeating Bayern Munich in the Champions League final in Barcelona in 1999.

Ratcliffe has previously attempted to buy Chelsea and Newcastle United.

The INEOS footballing portfolio also includes French side Nice, Swiss team FC Lausanne and RC Abidjan in the Ivory Coast.

The core business of INEOS is global petrochemicals manufacturing, which generates $65billion (£82.3bn) annually, while, according to the 2023 Sunday Times Rich List, Ratcliffe’s personal net worth rose from $6.075bn to $29.6bn between 2022 and 2023.

He owns 60 per cent of INEOS, with the remaining portion split between his two business partners, Andy Currie and John Reece, who were placed 13th and 14th in the Rich List, behind Ratcliffe in second.

What happens now?

This is the question on everyone’s lips, so here’s what we know.

In return for his investment, Ratcliffe wants control over and responsibility for sporting decisions at Old Trafford. Essentially, he wants to reshape the football part of this football club in the INEOS image.

United’s on-field success has dried up since Ferguson retired at the end of the 2012-13 season. The Glazers are responsible for this and, ultimately, the lack of silverware has undermined the value of their asset.

Ratcliffe has come along and offered to pay a premium to own 25 per cent of the business and clearly feels he can do a better job of running the sporting operation.

Could anyone leave and be replaced?

The Athletic reported in October that Richard Arnold was expected to leave his role as United’s chief executive once Ratcliffe’s minority stake goes through — and United confirmed his departure on November 15.

Arnold had held the position since taking over from Ed Woodward in February 2022 but Patrick Stewart, the legal counsel and a member of the board, has now taken up the role on an interim basis.

Blanc, the former Juventus chief executive who left a high-ranking role at Paris Saint-Germain last December to oversee the entire INEOS Sport portfolio, has joined the board is under consideration to replace Arnold on a permanent basis.

Ratcliffe and Brailsford are also weighing up options for a sporting director appointment. Paul Mitchell has been a name touted as the leading candidate. Any incoming arrival would cast doubt on the future of current football director John Murtough, who has been in his position since 2021.

(Top photo: Getty Images)