Manchester United takeover: Sir Jim Ratcliffe purchases $1.5bn worth of shares

Sir Jim Ratcliffe, the owner of INEOS, has just finalized his 25% purchase of Manchester United FC, for a jaw-dropping $1.5bn (£1.2bn). A new wave of directors and financial support is on its way to Old Trafford.

The 'Red Devils' have endured many ups and downs throughout the 2023-24 season, but have bounced back from a mid-table drop. While the team regains its spirit on the pitch, the board of directors hopes to rebuild the European giant back to its former glory.

The lack of silverware and the total collapse in the Champions League left the team in disarray, and many fans demanded a change from the board of directors.

The Glazer family leveraged a buyout in 2005, purchasing the club for a total of $1.4bn (£1.11bn). At the time of purchase, Sir Alex Ferguson was the coach and Manchester United had a sense of direction.

In the first eight years of Glazer ownership, the Red Devils went on to win one European competition and a handful of Premier League titles. Their last league title was under Sir Alex Ferguson, in the 2013 season.

After the departure of Sir Alex Ferguson in 2013, the club has since then failed to win a league or pass to another Champions League semi-final. In recent years, there has been growing criticism from fans and Manchester United icons, claiming the team lacks direction. Many of these critiques called for a revolutionizing change at the club, starting with a change in ownership.

There were talks of potential takeovers as Manchester United owners listened to various proposals. The strongest bid came from Qatari Sheikh Jassim bin Hamad al Thani, who would be spotted frequently visiting Old Trafford.

The Qatari bid for Manchester United would wipe out all the club’s debts, while still standing at $622m (£491m) net. This a solid offer that would drastically help the club's finances while also committing a big investment into the men’s and women’s teams, the stadium, and a major redevelopment project for a new training ground.

“Don’t forget as well that the takeover has cost United more than $1.2bn in interest and dividends. As far as the Qataris are concerned, there would be no loans, no debts, no dividends, and any profits would be reinvested in the club and the local community”, according to Kaveh Solhekol, Sky Sports News chief.

Sir Jim Ratcliffe, who originally bid for 69 percent of Manchester United, settled for a 25 percent deal. "Ratcliffe is acquiring the interest for $33-a-share in a deal that will include all aspects of the men's and women's football operations and academies for his INOS group," shared an INEOS statement.

According to SkySports, "there is no formal agreement for Ratcliffe to buy any of the Glazers' shares in the future but the INEOS chairman has the right of first refusal on any they sell in the future."

Sir Ratcliffe is an outspoken Manchester United fan and has previously expressed his desire to own a Premier League club. His company, the petrochemical multinational INEOS, has also been accused of using greenwashing – football is one of the many sports used to improve its corporate reputation.

According to SkySports, there will be some changes to the board of directors. Sir Dave Brailsford (INEOS director of sport) and Jean-Claude Blanc (CEO of INEOS sport and former executive at Juventus and PSG) will have seats on the club board.

Furthermore, SkySport reports Sir Ratcliffe will inject $300m (£237m) into the club for investment in infrastructure, taking his immediate outlet to roughly $1.5bn (£1.2bn).

The British millionaire also owns O.G.C. Nice, a Ligue 1 team currently middling in the French league table. Ratcliffe also owns FC Laussanne-Sport, a cycling team, and a third of the Mercedes Formula 1 team. Manchester United would enter a multi-club ownership model like many others in the Premier League.

More on multi-club ownership

Sir Ratcliffe is believed to have been working with Goldman Sachs and JP Morgan however, any of the depts from the takeover process would not be loaded onto the club, as was the case with the Glazers.

US hedge fund Elliott Management also logged a proposal regarding Manchester United. The proposal was not qualified as a bid for the English club but as a financial alternative. The proposal would have involved the US hedge, taking a stake in the club providing debt financing, or a mix of both.

While the board of directors shifts seats, Erik Ten Hag has devoted 100% focus to improving the team's position as the 2023-24 season heads into its final phases. Everything outside of football is static noise for them and beyond their control. Erik ten Hag understands that at the end of the day, what matters most is what happens on the pitch.

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