On Sunday, British businessman Jim Ratcliffe agreed to buy a 25% share in Manchester United and committed to invest $300 million in the English Premier League team to try to turn its fortunes around.
The agreement, which will also see Ratcliffe’s INEOS business take over control of the club’s football activities, ends more than a year of uncertainty after the Glazer family, the club’s principal owners, stated in November 2022 that they were considering strategic options.
Fans have slammed the Glazers for presiding over a downturn in the club’s performance after former manager Alex Ferguson retired in 2013 after a period of unmatched success.
“As a local boy and a lifelong supporter of the club, I am 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,” 71-year-old Ratcliffe said in a statement.
“While the club’s commercial success has ensured that there have always been funds available to win trophies at the highest level, this potential has not been fully realized in recent times.”
“We will bring the global knowledge, expertise and talent from the wider INEOS Sport group to help drive further improvement at the Club, while also providing funds intended to enable future investment into Old Trafford.”
According to a person familiar with the situation, Ratcliffe’s stake purchase at $33 per share values the 20-time English champion at $6.3 billion including debt.
The club stated that $200 million of Ratcliffe’s proposed investment will be paid at the closure of the deal, with the remaining $100 million due by the end of 2024.
Sheikh Jassim bin Hamad al Thani of Qatar had also considered purchasing the club, but withdrew out after claiming he would not boost his $6 billion bid.
Ratcliffe’s INEOS also owns Nice of the French Ligue 1, FC Lausanne-Sport of the Swiss Super League, and Racing Club Abidjan of the Ivory Coast’s Ligue One. It is also the driving force behind the Grenadiers, one of the most successful cycling teams in the world.
“Sir Jim and INEOS bring a wealth of commercial experience as well as a significant financial commitment into the club,” stated United’s executive chairs Avram Glazer and Joel Glazer.
“And, through INEOS Sport, Manchester United will have access to seasoned high-performance professionals, experienced in creating and leading elite teams from both inside and outside the game.”
Since Ferguson’s departure, United have gone through five permanent managers and three caretakers, but have yet to relive their golden days, winning only one FA Cup, two League Cups, and a Europa League trophy in 11 years.
The Glazers’ steadfast refusal to sell the club has become a cause of anger for fans who have clamoured for change and held protests as the team’s net debt has risen to more than $600 million.
United sits ninth in the Premier League standings under Dutch coach Erik ten Hag, after spending roughly 1 billion euros ($1.1 billion) on transfers in the last six years.
It was also eliminated from European competitions, having finished last in its Champions League group.