INEOS has purchased ownership of a 25% stake in Manchester United as part of a £1.3 billion acquisition, with a further £245 million of Sir Jim Ratcliffe’s wealth already committed to invest in infrastructure improvements, according to The Athletic.
Sir Jim Ratcliffe & INEOS Complete 25% Takeover of Manchester United in £1.3 Billion Deal
Everything We Know About The Glazer’s Deal So Far
Ractliffe, the founder of petrochemical giant INEOS, has agreed to a deal with the Glazer family, who will dilute their shares to allow for the minority investment. The American family bought the club for £790 million in 2005 as part of a hugely unpopular deal largely financed by loans against the club’s assets.
The club’s debt from the takeover in 2005 still remains at over £500 million, with total debt understood to be around £1 billion, including owed transfer fees and a revolving credit agreement. United have also paid around £500 million in interest on the debt taken by the Glazers.
United’s fall from the heights seen under Sir Alex Ferguson has furthered the fanbase’s anger with the Glazers. A deal with Ratlciiffe allows them to distance themselves from recruitment and investment mistakes, all while making a profit and retaining ownership in hopes that the club’s value increases. They intend to hand over control of recruitment and general sporting decisions at the club to the minority investors.
The £245 million investment pledged by the new investors will be used for infrastructure upgrades, including plans to make improvements to Old Trafford and to potentially make upgrades to the Carrington training ground.
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Who Ratcliffe & INEOS Plan to Install at Manchester United
INEOS has already decided that Dave Brailsford, who led Team Sky’s successful cycling team, and INEOS Sports CEO Jean Claude Blanc will be added to the club’s board. Patrick Stewart, United’s interim CEO, has already informed staff that Brailsford and Blanc will begin work at the club in January.
During a call with staff, Stewart was also pressed on how the football operations will be run by United’s head of data science, Dominic Jordan. In response, he stated that the club are still working to flesh out the exact approach for the next few months, although some of this has already been decided upon from negotiations with the new investors.
Brailsford and Ratcliffe are considering candidates to become sporting director at the club, responsible for transfers and general football decisions at the club. Such a move is likely to result in the resignation of football director John Murtough, who joined the club in 2021. The Telegraph has reported that former Liverpool director Julian Ward is a potential target.
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How Will the Manchester United Sale Work
INEOS has purchased 25% of the class A shares listed on the New York Stock Exchange, as well as the class B shares which contain the vast majority of voting rights. The company has paid $33 (£26) a share for the acquisition.
The investment means INEOS will take two seats on the board of Manchester United Football Club and Manchester United PLC. While Brailsford and Blanc will sit on the club board, the BBC understands that the Chairman of INEOS Sport, Rob Nevin will take a seat on the PLC, while INEOS shareholder John Reece will take the other.
Erik ten Hag’s Job May Be Safe While INEOS Takeover Awaits Approval
United’s status as a public company listed on the stock exchange, means that there are significant regulations on the purchase of a 25% stake in the club. The deal will need to be formally approved by the board and the Premier League, it is a process expected to take between 6-8 weeks.
In the meantime, Erik ten Hag’s side have struggled severely and head into the January transfer window uncertain of how much business can be done. Their 2-0 defeat to West Ham on Christmas Eve marked their 13th loss of the season in all competitions and saw them drop the eighth place in the Premier League. Their failure to score in that game extended their lengthy goal drought to 6 hours 45 minutes.
With the Red Devils already out of European competition, many may be wondering whether the former Ajax boss is in significant danger of being sacked. While patience may be wearing thin for many fans of the club, it seems unlikely that any of the current staff have the authority to decide on their head coach’s future.
If INEOS were likely to have control of the club with enough time to prepare for and control purchases in January, then perhaps they would review Ten Hag’s position and consider whether it would be best for a fresh start. However, with the deal likely to take up to two months to be ratified, Ratcliffe and his partners may decide to wait until the summer to make a decision.
This would have the advantage of allowing them to distance themselves from any failures this season and allow them to prepare for the summer without taking any big risks in January.
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Ratcliffe & INEOS’ Multi-Club Structure
The takeover of sporting operations at Manchester United raises new questions for football governance and the emergence of the multi-club model. For over a decade, investment groups such as City Football Group (owners of Manchester City, Girona FC and several other clubs) have acquired clubs in several countries, using shared data, scouting and tactical knowledge to improve financial outcomes as well as results on the pitch.
While this phenomenon is not new, a competitive integrity issue is raised by the ownership of players under the multi-club system. The model could allow for clubs to purchase a player and loan them to other clubs within the wider organisation. This has the potential to circumvent financial fair play restrictions, although there have been few allegations of any unfair activity by multi-club investment groups to this date.
Concerns about the issue sparked an unsuccessful attempt by some Premier League clubs to temporarily block any loan agreements between clubs with shared ownership until a permanent solution was found. In particular, the vote was called after reports that Ruben Neves, who signed for Saudi Club Al Hilal in the summer, could be loaned to Newcastle in January. Al Hilal and Newcastle are both owned by the Public Investment Fund of Saudi Arabia.
Ratcliffe’s company owns OGC Nice, whose player Jean-Clair Tobido is reportedly a top target for United. They also own Swiss side FC Lausanne-Sport and are a principal partner and part-owner of the Mercedes-AMG Petronas F1 team.
It is still unclear how the Premier League will adapt to the continued growth of the multi-club model and questions raised over unfair advantages propagated by the system.
