Jim Ratcliffe would pay more than US$1.5 billion for 25 per cent Manchester United stake, could get ‘sporting control’
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Manchester United is currently valued by the stock market at US$3.3 billion.
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MANCHESTER – Ineos chairman Jim Ratcliffe would pay over US$1.5 billion (S$2.16 billion) for a 25 per cent stake in Manchester United
The terms of his bid infer a valuation on United of close to US$6.5 billion, excluding their net debt of more than US$600 million, the source said.
That is slightly higher than a rival offer from Qatar’s Sheikh Jassim Bin Hamad Al Thani for 100 per cent of the Premier League club. United are currently valued by the stock market at US$3.3 billion.
Former United captain Gary Neville raised his concern over how much impact a minority investment can have in turning round the club’s fortunes on and off the field.
“My preference is and always will be now for a Glazer family full exit. They have overstayed their welcome in Manchester yet seem oblivious to this fact,” he posted on social media.
“How does a minority shareholder stop cultural decline across a whole organisation if the people who have overseen this decline still have a majority shareholding?”
However, The Athletic have reported that Ratcliffe could take over “sporting control of the club”.
They explained: “Because that is the price Ratcliffe is demanding for his very generous... offer to give the Glazers a premium price for what looks like a very mediocre slice of the pie.
“There is absolutely no other reason anyone who owns only 25 per cent of the company would be given such enormous power.”
Sheikh Jassim informed the Glazer family in the last few days that he would not be raising his bid further. The Glazers have not yet reached a deal with Ratcliffe and negotiations may continue at least until the end of October, the source said.
Shares of United fell as much as 23 per cent on Monday after that news became public. The shares were last down 10.5 per cent at US$17.88 in pre-market trading. If losses hold, they could touch their lowest level in more than four months.
The Glazer family, which made its fortune in real estate, retail and healthcare and also owns the National Football League’s Tampa Bay Buccaneers, bought the team for £790 million (S$1.32 billion) in 2005. The six children of American businessman Malcolm Glazer, who died in 2014, together control 96 per cent of United’s voting stock.
The deal structure that Ratcliffe has proposed would allow members of the Glazer family, as well as other shareholders, to partially cash out, the source said.
Some club fans have criticised the Glazers over the years over their handling of this key aspect of United’s operations.
“It would be wildly optimistic to think the Glazers are acting in the interests of supporters or are making ownership decisions which don’t centre on their own priorities,” the Manchester United Supporters Trust said in a statement.
“However, what supporters should expect at the very least now is some clarity and an end to this process.
“Furthermore the outcome must include new investment into the club. It cannot be solely about the interests of shareholders, whether existing or new.”
The source requested anonymity because the matter is confidential. United and Ratcliffe did not immediately respond to a request for comment.
Ratcliffe founded Ineos in 1998 and is the chemical group’s chairman and chief executive officer, with a two-thirds stake. Forbes pegs Ratcliffe’s net worth at US$18.7 billion.
The British billionaire is no stranger to the business of sports. Ineos owns French Ligue 1 club Nice and Swiss Super League side Lausanne-Sport. It is also behind the Grenadiers, one of the world’s most successful cycling teams.
The Glazers’ valuation expectations have been aggressive, based on other football deals. In 2022, the US$3.1 billion acquisition of Chelsea by an investment group led by Todd Boehly and Clearlake Capital valued it at 5.7 times revenue for its last financial year.
The valuation proposed by Ratcliffe is equivalent to more than 11 times United’s revenue over the last 12 months, according to London Stock Exchange Group data.
The club announced in November 2022 that the Glazers were exploring cashing out on their ownership.
Record 20-time English champions, United have over 650 million fans worldwide, according to market research firm Kantar. A large number of them have been clamouring for a change of ownership.
That is because the Glazers have overseen a significant downturn in the club’s fortunes.
The Red Devils have not won the EPL since manager Alex Ferguson retired in 2013 and last won the Champions League in 2008.
While United won their first trophy in six seasons with the League Cup in February,
The League Cup success came under current boss Erik ten Hag but their third-place finish in the league, 14 points behind local rivals and treble winners Manchester City, underscored the scale of the turnaround required. REUTERS, AFP
