On Sunday, British businessman Jim Ratcliffe agreed to buy a 25% stake in Manchester United and pay $300 million to help the English Premier League team turn its fortunes around.
The agreement, which also includes Ratcliffe’s INEOS business taking over administration of the club’s football activities, brings an end to more than a year of uncertainty after the Glazer family, the club’s major owners, indicated in November 2022 that they were examining strategic options.
Fans have chastised the Glazers for presiding over a decline in the club’s performance following the retirement of previous manager Alex Ferguson in 2013 after a period of unprecedented 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 wrote in an e-mail.
“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.”
Ratcliffe’s stake purchase at $33 per share values the 20-time English champion at $6.3 billion, including debt, according to a person familiar with the situation.
The club announced that the club will pay $200 million of Ratcliffe’s anticipated investment at the close of the deal, with the remaining $100 million payable by the end of 2024.
Sheikh Jassim bin Hamad al Thani of Qatar was also interested in owning the club, but backed out after declaring he would not increase his $6 billion proposal.
Ratcliffe’s INEOS also owns Nice in France’s Ligue 1, FC Lausanne-Sport in Switzerland’s Super League, and Racing Club Abidjan in Ivory Coast’s Ligue One. It’s also the driving force behind the Grenadiers, one of the world’s most successful cycling teams.
“Sir Jim and INEOS bring a wealth of commercial experience as well as a significant financial commitment into the club,” United’s executive chairs Avram Glazer and Joel Glazer said.
“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.”
United have had five permanent managers and three caretakers since Ferguson’s retirement, but they have yet to repeat their glory days, winning only one FA Cup, two League Cups, and a Europa League title in 11 years.
The Glazers’ refusal to sell the club has enraged fans, who have cried for change and held rallies as the team’s net debt has climbed to more than $600 million.
Under Dutch coach Erik ten Hag, United is ninth in the Premier League rankings after spending nearly 1 billion euros ($1.1 billion) on transfers in the last six years.
It was also kicked out of European competitions after finishing last in its Champions League group.