More than a year after it was put up for sale, Manchester United announced on Sunday that British billionaire Jim Ratcliffe has agreed to take a minority stake in the legendary Premier League club.
Ratcliffe, owner of petrochemical company INEOS and one of Britain’s richest people, has secured a stake of “up to 25%” in the 20-time league championship and will invest $300 million in its Old Trafford stadium.
Based on the deal, United said Ratcliffe would take over the club’s football operations.
Ratcliffe will provide $200 million once the deal closes and another $100 million through the end of 2024, United said. In total, the deal will amount to approximately $1. 6 billion, adding up to the $300 million in funding.
The deal is subject to approval by the Premier League.
Ratcliffe, born in Failsworth, Greater Manchester, had first presented the purchase of the entire majority stake, approximately 69%, which belonged to the Glazers, the American owners of the club.
“As a local kid and a long-time supporter of the club, I am very pleased that we have reached an agreement with Manchester United’s board of directors delegating to us the task of managing the club’s football operations,” Ratcliffe said.
“Although the club’s publicity good fortune has ensured that there is a budget available to win trophies at the highest level, this prospect has not been fully exploited in recent times. We will bring INEOS Sport’s global knowledge, experience and capability to the fullest to help improve the club, while also offering budget to enable long-term investments at Old Trafford.
The transaction will be financed through Trawlers Limited, a wholly-owned company owned by Ratcliffe, and any debt, United said. United enthusiasts have criticised the nature of the leverage of the Glazers takeover that has saddled the club with debt, as well as the perception of underinvestment and dividends withdrawn through the owners.
Avram Glazer and Joel Glazer, co-chairmen and directors of United, said in the statement: “Sir Jim and INEOS bring a wealth of advertising expertise to the club, as well as a significant monetary commitment. And, through INEOS Sport, Manchester United has access to experienced high-performance professionals with construction experience and leading elite teams, both in and out of the game.
“Manchester United have talented people all over the club and our preference is to improve at all levels to help our wonderful enthusiasts achieve more good fortune in the future. “
The Glazers announced last November their goal of seeking new investment and tasked U. S. investment bank Raine with overseeing the process, which included conducting a full sale.
Ratcliffe had been in competition with Qatari banker Sheikh Jassim bin Hamad Al Thani to buy out the Glazers, who also own the NFL’s Tampa Bay Buccaneers. But after months of protracted negotiations Sheikh Jassim withdrew his bid in October to leave Ratcliffe in position to take a minority share in the club.
Sheikh Jassim has maintained that he was interested in a full acquisition.
United Ratcliffe paid $33 per share.
Ratcliffe is buying a club that has suffered a decade of decline on the pitch since former manager Alex Ferguson’s retirement in 2013. He hasn’t won the name since.
Lingering uncertainty over ownership has sparked fan protests outside the club’s Old Trafford stadium, while chants of “Glazers out” have been heard during matches.
While enthusiasts have long regarded Ratcliffe as a potential popular owner, his minority investment means the Glazers remain in place, despite years of fan campaigns to scare them away.
Backward tycoon Malcolm Glazer bought United in 2005 for £790 million (at the time about $1. 4 billion) amid a backlash from his supporters.
“The shared ambition is to create a world-class football operation through building on the club’s many existing strengths, the off-field performances it continues to enjoy,” United said on Sunday.
Initially, Ratcliffe’s INEOS said it was aiming for “a modern, progressive and fan-focused ownership strategy”.
It also said it was focused on United winning the Champions League for the first time since 2008 and making it the “number one club in the world once again.”
Ratcliffe is reportedly worth $15. 1 billion and tried to buy Premier League club Chelsea last year.
He already owns French club Nice, cycling franchise Team INEOS, owns a third of Formula 1 Mercedes-AMG Petronas and competes in the America’s Cup with INEOS Britannia SailingArray.