More than a year after it was put up for sale, Manchester United announced on Sunday that British billionaire Jim Ratcliffe had agreed to take a minority stake in the legendary Premier League club.
Ratcliffe, owner of petrochemical company INEOS and one of Britain’s richest people, has secured a stake of “up to 25%” in the 20-time league championship and will invest $300 million in its Old Trafford stadium.
Based on the deal, United said Ratcliffe would take over the club’s football operations.
Ratcliffe will provide $200 million upon completion of the deal and a further $100 million by the end of 2024, United said. In total the deal will be worth around $1.6 billion, including the $300 million of funding.
The deal is subject to approval by the Premier League.
Ratcliffe, who was born in Failsworth, Greater Manchester, had originally bid to buy the entire majority share of around 69% held by the Glazers, the club’s American owners.
“As a local kid and a long-time supporter of the club, I am very pleased that we have reached an agreement with Manchester United’s board of directors delegating to us the task of managing the club’s football operations,” Ratcliffe said.
“Although the club’s publicity good fortune has ensured that there is a budget available to win trophies at the highest level, this prospect has not been fully exploited in recent times. We will bring INEOS Sport’s knowledge, experience and global skill to the max. to help improve the club, while also offering budget to allow for long-term investments at Old Trafford.
The transaction will be financed through Trawlers Limited, a wholly-owned company owned by Ratcliffe, and any debt, United said. United enthusiasts have criticised the nature of the leverage of the Glazers takeover that has saddled the club with debt, as well as the perception of underinvestment and dividends withdrawn through the owners.
Avram Glazer and Joel Glazer, United’s co-chairmen and directors, said in the statement: “Sir Jim and INEOS bring a wealth of advertising expertise to the club, as well as significant monetary commitment. And, through INEOS Sport, Manchester United have access to seasoned, high-performance professionals with construction experience and leading elite teams, both in and out of 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 Glazers announced last November plans to seek new investment and instructed US merchant bank Raine to oversee the process, which included the potential of a full sale.
Ratcliffe is competing with Qatari banker Sheikh Jassim bin Hamad Al Thani to buy the Glazers, who also own the NFL’s Tampa Bay Buccaneers. But after months of lengthy negotiations, Sheikh Jassim withdrew his candidacy in October to leave Ratcliffe in a position to acquire a minority stake. at the club.
Sheikh Jassim has maintained that he was interested in a full takeover.
United Ratcliffe paid $33 per share.
Ratcliffe is buying a club that has suffered a decade of decline on the pitch since former manager Alex Ferguson’s retirement in 2013. It has since earned its name.
Continued uncertainty over ownership sparked fan protests outside the club’s Old Trafford stadium, while chants of “Glazers out” could be heard during matches.
While enthusiasts have long regarded Ratcliffe as a potential popular owner, his minority investment means the Glazers remain in place, despite years of fan campaigns to scare them away.
Late tycoon Malcolm Glazer bought United in 2005 for £790 million (at the time about $1. 4 billion) amid a backlash from his supporters.
“The shared ambition is to create a world-class football operation through building on the club’s many existing strengths, the off-field performances it continues to enjoy,” United said on Sunday.
Initially, Ratcliffe’s INEOS said it was aiming for “a modern, progressive, fan-centric ownership strategy. “
He also said he was looking for United to win the Champions League for the first time since 2008 and make it the “number one club in the world” again.
Ratcliffe is reportedly worth $15. 1 billion and tried to buy Premier League club Chelsea last year.
He already owns French club Nice, cycling franchise Team INEOS, owns a third of Formula 1 Mercedes-AMG Petronas and competes in the America’s Cup with INEOS Britannia SailingArray.