After English soccer club Manchester United announced in November 2022 that its board was considering “strategic alternatives” to support the club’s future growth and success, Qatari investors briefly expressed interest in February of 2023. Last September, however, the Glazers family announced that they were taking the club off the market after failing to achieve anywhere near their expected asking price.
Sir Ratcliff returns to the stage after sales halt
Back then, British billionaire and chairman of INEOS, Sir Jim Ratcliffe, had reportedly also come forward with an offer that would give the Glazers a minority stake. According to the British tabloid The Daily Mail, the Glazers had said at the time that they would try to sell the club again in 2025 in the hope that other financial and environmental factors would attract more bidders.
But now, the soccer club announced on Dec. 24 that it has reached an agreement under which Ratcliffe will acquire 25 percent of Manchester United’s Class B shares and up to 25 percent of Manchester United’s Class A shares and provide an additional $300 million to enable future investment at Old Trafford.
As part of the transaction, INEOS has agreed to a proposal by the Board to take over responsibility for the management of the club’s soccer operations. This includes all aspects of men’s and women’s soccer and the academies, as well as two seats on the board of Manchester United PLC and the board of Manchester United Football Club. The joint aim is to create a world-class soccer operation that builds on the club’s many existing strengths, including the successful off-field performances that the club continues to enjoy, according to the press release issued on Christmas Eve.
“We are delighted to have agreed to this deal with Sir Jim Ratcliffe and INEOS,” said Avram Glazer and Joel Glazer, Executive Co-Chairmen and Directors. “As part of the strategic review we announced in November 2022, we are committed to looking at a range of alternatives to improve Manchester United, with a focus on the success of our men’s, women’s and academy teams. Sir Jim and INEOS bring a wealth of commercial experience as well as a significant financial commitment to the club. And through INEOS Sport, Manchester United will have access to experienced high-performance professionals who have experience both inside and outside of soccer in building and managing top teams. Manchester United has talented people throughout the club, and our desire is to improve at all levels to bring even more success to our great fans in the future.”
Ratcliffe, who most recently made a name for himself with the market launch of the Grenadier off-road utility vehicle, said: “As a local lad and lifelong supporter of the club, I am delighted that we have been able to agree a deal with the Manchester United board that puts us in charge of the club’s soccer operations. While the club’s commercial success has always ensured that resources have been available to win trophies at the highest level, this potential has not been fully exploited in recent times. We will bring the global knowledge, expertise and talent of the entire INEOS Sport group to drive further improvements at the club while providing funds to enable future investment at Old Trafford.”
Transaction details
The transaction is subject to the usual regulatory approvals, and all parties hope that it can be completed as soon as possible. Under the terms of the agreements, Trawlers Limited – a company incorporated under the laws of the Isle of Man and wholly owned by Ratcliffe – will acquire 25 percent of the Class B Ordinary Shares, par value $0.0005 per share, and make a takeover offer to acquire a number of shares which will represent 25 percent of the Class A Ordinary Shares at launch, par value $0.0005 per share, in each case at a price of $33.00 per share in cash. Subject to a sufficient number of Class A shares being tendered in the offer, Trawlers Limited would own 25 percent of the club on completion of the transaction.
Ratcliffe will provide a fund of $300 million to enable future investment in the club’s infrastructure at Old Trafford. Of this, $200 million will be paid on completion of the transaction and a further USD 100 million by the end of 2024. Trawlers Limited will receive additional Class A and Class B shares at $33.00 for this investment. The transaction will be fully funded by Trawlers Limited with no debt.
