In a significant development on the Manchester United ownership front, Sir Jim Ratcliffe, the billionaire head of Ineos, is on the verge of sealing a deal with the Glazer family. The proposed agreement entails Ratcliffe acquiring a 25% stake in Manchester United, a move that aligns with his long-standing affinity for the club. While Ratcliffe initially harbored intentions of acquiring the entire club, negotiations have steered toward a minority ownership structure.
The impending deal, valued at $33 per share, is anticipated to be finalized soon, marking a crucial milestone in the ongoing talks between Ratcliffe and the Glazers. The agreed-upon sum places the overall valuation of a quarter of Manchester United at a staggering £1.3 billion. This development unfolds nearly a year after the Glazers signaled their readiness to sell the club.
During this period, Sheikh Jassim of Qatar and Ratcliffe emerged as the primary contenders. However, with Jassim withdrawing from discussions to acquire the entire club, Ratcliffe has pivoted toward securing a minority ownership position.
As reported by Sky News, the negotiations between the British billionaire and the Glazers have settled on the $33 per share valuation for Ratcliffe’s prospective ownership stake. To put this in perspective, the New York Stock Exchange recently priced Manchester United’s shares at $18.43 each, resulting in a market capitalization of $3.04 billion. Ratcliffe’s deal reflects a premium of 75%, underscoring the substantial nature of the investment.
In addition to the £1.3 billion earmarked for the ownership stake, Ratcliffe has committed an additional £245 million. This supplementary funding is designated for essential infrastructure upgrades at Old Trafford, the iconic home ground of Manchester United, and the Carrington training ground. It’s noteworthy that this additional financial infusion is explicitly designated for infrastructure enhancements and will not contribute to the first-team playing squad.
While the formal announcement of Ratcliffe’s proposed deal is pending, the imminent agreement signifies a strategic move for both parties involved. For Ratcliffe, it represents a significant investment in a club he ardently supports, and for the Glazers, it is a demonstration of their willingness to entertain minority ownership to advance the club’s financial health and development.
