Sir Jim Ratcliffe and the Glazer family are nearing the final stages of a deal that would entail the petrochemicals magnate acquiring a 25% share in Manchester United Football Club at $33 per share.
Sources from Sky News have disclosed that after extensive negotiations spanning months between Ineos’ billionaire and the longstanding controlling investors of the Red Devils, a settlement has been reached at a valuation of approximately $33 per share. This figure stands at a premium of over 75% compared to the Thursday closing price of $18.43 on the New York Stock Exchange, which valued the club at $3.04 billion (£2.44 billion).
However, caution prevails, as insiders close to the discussions highlighted that the deal remains in the finalisation stage and is currently under ongoing negotiations. The transaction, almost precisely a year since the Glazers confirmed a strategic review of Manchester United’s ownership, appears imminent, potentially being announced as early as Monday or with a slight delay of a couple of days.
The Glazers are reportedly eager to conclude the agreement before the US Thanksgiving holiday, aiming to seal Sir Jim’s Ineos Sports acquisition of 25% of both A-shares and the B-shares, holding greater voting rights exclusively owned by the Glazers.
Recent developments within the club, such as the departure of chief executive Richard Arnold and the interim appointment of Patrick Stewart as CEO, are seen as indicative of Sir Jim’s emerging influence.
Despite winning the Carabao Cup last season after a six-year trophy drought, Manchester United has faced considerable on and off-field turbulence. Sir Jim’s proposed investment includes a commitment of $300 million (£245 million) for refurbishing the club’s aging infrastructure, in addition to the substantial stake acquisition amounting to over £1 billion. Importantly, these funds will stem from Sir Jim’s personal finances and won’t contribute to Manchester United’s existing debts.
Reports hint that Sir Jim might assume immediate control over football matters at the club, collaborating with Ineos Sports colleagues, including former cycling supremo Sir Dave Brailsford. Nevertheless, the prospect of Sir Jim acquiring a minority stake has unsettled many United fans, given that it could prolong the Glazers’ presence at Old Trafford.
Throughout this process, the Glazers have maintained a low profile, offering no substantial commentary to the NYSE since engaging with potential buyers began. Earlier proposals from Sir Jim focused on gaining outright control, but recent efforts have aimed at restructuring the deal to resolve the ongoing deadlock concerning United’s future.
Apart from Sir Jim and Sheikh Jassim’s competing bids, other credible offers for minority stakes or financing have been received by the Glazers from various entities like Carlyle, Elliott Management, Ares Management Corporation, and Sixth Street.
The Glazers’ valuation of the club, despite criticism and protests during their tenure, is rooted in the potential for greater control over lucrative broadcast rights and the belief in maximizing the commercial potential of one of the world’s most renowned sports brands.
Manchester United’s shares on the New York Stock Exchange have experienced considerable fluctuations as reports alternatively suggested a deal nearing finality or the Glazers formally retracting the sale process.
The Glazers’ ownership has been marked by controversy and fan protests, amplified by the absence of a Premier League title since Sir Alex Ferguson’s departure in 2013 and the ill-fated European Super League project in 2021, fostering supporters’ demand for new ownership.
While the Glazers launched a strategic review in November last year, pledging to prioritize the club’s growth opportunities, discontent among fans persists, encapsulated by the slogan “Love United, Hate Glazers.”
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