British billionaire Sir Jim Ratcliffe, has recently had his deal approved by the Premier League to acquire a 25% stake in Manchester United.
The deal, worth an estimated $1.3bn, is still pending approval from the Football Association. Despite the transaction, the Glazer family will maintain the majority stake in the club, while Ratcliffe’s Ineos Group will be responsible for controlling football operations.
To ensure that the deal is completed, Premier League approval is contingent on its finalization. In addition to this condition, Ratcliffe has signed the owners’ charter as confirmed by the league. The deal being the first to be agreed upon under the updated Premier League’s owners’ and directors’ test, ratified by member clubs in March 2023, includes an independent oversight panel review.
The businessman’s deal, agreed upon on Christmas Eve, also encompasses a $300m investment for the club’s Old Trafford stadium. Further details reveal that Ratcliffe plans to purchase 25% of the club’s class B shares, largely held by the Glazer family, as well as up to 25% of its class A shares, which are listed on the New York Stock Market, valued at $33 each.
According to an update to the US Securities and Exchange Commission (SEC) on Monday evening, the deadline for class A shareholders to tender their shares for sale has been extended. Already, 36.7% of class A shares have been tendered, surpassing the 25% that Ratcliffe has agreed to purchase.
Taking on the sporting control at the club, Ineos will oversee the men’s and women’s football operations and academies, additionally gaining two seats on the Manchester United PLC and Manchester United Football Club boards. Despite the deal, Sir Ratcliffe continues to await final approval while also making numerous visits to Old Trafford and the club’s training ground.
The Glazer family initially acquired Manchester United for £790m in 2005 and had previously stated their consideration of selling to “explore strategic alternatives”. Nonetheless, Ratcliffe’s impending deal with the club is currently proceeding towards completion.
