Sir Jim Ratcliffe gets approval to buy 25% stake in Manchester United from the Premier League
Aoba Tanaka
2 min read
In a landmark development for Manchester United, British billionaire Sir Jim Ratcliffe proposed acquisition of a 25% stake in the football club has received approval from the Premier League. The deal, valued at approximately $1.3 billion (£1.03 billion), is now pending approval from the Football Association.
While the Glazer family, the current owners, will retain a majority stake, Ratcliffe’s Ineos Group is set to assume control over the football operations at Manchester United. The Premier League’s approval is contingent on the successful completion of the deal. In a statement, the league confirmed that it is awaiting confirmation of the transaction’s completion and noted that Ratcliffe, aged 71, has also signed the owners’ charter.
This significant agreement marks the first deal to be finalized under the Premier League’s updated owners’ and directors’ test, approved by member clubs in March 2023. The revamped test includes a review by an independent oversight panel to ensure compliance with league regulations.
The deal, struck on Christmas Eve, encompasses a financial commitment of $300 million (£236 million) earmarked for future investments into the iconic Old Trafford stadium. Sir Jim Ratcliffe has agreed to purchase 25% of the club’s class B shares, predominantly held by the Glazer family, who currently own 69% of the club and retain almost all the voting rights. Additionally, Ratcliffe will acquire up to 25% of its class A shares, listed on the New York Stock Market, with a value of $33 each.
An update to the US Securities and Exchange Commission (SEC) on Monday evening revealed an extension of the deadline for holders of class A shares to tender them for sale until 23:59 pm on Friday. Currently, 36.7% of class A shares have been tendered, surpassing the 25% agreed upon by Ratcliffe.
Ineos Group, assuming sporting control at Manchester United, will oversee the football operations, academies, and both men’s and women’s teams. As part of the deal, Ineos will secure two seats on both the Manchester United PLC and Manchester United Football Club boards.
Sir Jim Ratcliffe has been actively involved in the club during the waiting period, making several visits to Old Trafford and the club’s training ground. Sources indicate that the final approval process is progressing positively toward completion.
The Glazer family, who acquired Manchester United for £790 million in 2005, signaled their intention to explore strategic alternatives in November 2022, leading to the consideration of this transformative deal with Ineos Group.
