How Change in Manchester United's Ownership has Opened Doors to Transformation
Manchester United is one of the most iconic soccer clubs in the world and now INEOS Chief Executive Jim Ratcliffe officially became a minority shareholder in Manchester United, securing a 25% stake at $33 per share. Manchester United revealed the completion of an agreement where Ratcliffe will acquire 25% of Manchester United’s Class B shares and up to 25% of Manchester United’s Class A shares. On top of that, he will provide an additional $300 million for future investments in Old Trafford. As part of the deal, INEOS has accepted the Board's request to oversee the management of the Club’s football operations.
Expressing his satisfaction with the deal, Ratcliffe, a lifelong supporter of the club, remarked that he is very pleased that we have been able to agree a deal with the Manchester United Board that delegates us management responsibility of the football operations of the Club.
Initially eyeing the majority share of approximately 69% owned by the Glazers, who are the current American proprietors of Manchester United, Ratcliffe settled for an acquisition of "up to 25%," expressing his contentment with the arrangement. In a strategic move, his own company, Trawlers Limited, is covering the financial commitments without resorting to borrowing.
This development holds particular significance for Manchester United fans, given concerns over the debt incurred during the Glazers' ownership. Despite retaining a substantial portion of the club, the Glazers express optimism regarding Ratcliffe's involvement.
Ratcliffe's $1.6 Billion vision for Manchester United
In November 2022, the Glazers announced their search for new investors, leading to a competitive bid between British billionaire Ratcliffe and Qatari banker Sheikh Jassim bin Hamad Al Thani. Eventually, Ratcliffe secured a partial stake after Sheikh Jassim's withdrawal in October 2023. The deal, which was sealed at $33 per share, has sparked anticipation about the potential changes Ratcliffe could bring to Manchester United.
Stepping into a club that has faced on-field challenges for a decade, especially post-Alex Ferguson's retirement in 2013, Ratcliffe now aims to reshape Manchester United's trajectory. Despite the uncertainty in ownership leading to fan protests and chants of "Glazers out," Ratcliffe's minority investment keeps the Glazers in control.
The future of Manchester United
United's plan, as outlined by INEOS, focuses on a "modern, progressive, fan-centered approach to ownership." The aim is to enhance the football operation, leveraging the club's existing strengths both on and off the pitch. The long-term goal is to propel Manchester United back to Champions League victory, last achieved in 2008, and reclaim the title of the "number one club in the world."
With a net worth of around $15.1 billion, Ratcliffe, who also attempted to acquire Chelsea last year, boasts an extensive sports portfolio. Apart from his investment in Manchester United, he owns French club Nice, the cycling franchise Team INEOS, holds a one-third stake in the Mercedes-AMG Petronas Formula One team and competes in America’s Cup with the sailing team INEOS Britannia. His entrance in Old Trafford with this deal, signals an era of potential transformation.