British billionaire Sir Jim Ratcliffe is on the brink of finalising the highly anticipated £1.25 billion deal to acquire a 25% stake in Manchester United, Sky News reports.
The deal, structured as a tender offer, will see Ratcliffe’s INEOS Sports secure two boardroom seats at Old Trafford and is expected to be rubber-stamped early next week.
This development comes more than a year after the Glazer family, who assumed control of the Red Devils in 2005 after investing approximately £800 million, began exploring a potential sale.
Ratcliffe’s imminent investment is worth $33-a-share and involves INEOS acquiring 25% of the listed A-shares, with the Glazers also selling 25% of their B-shares, which offers greater voting rights, to the INEOS chief.
As part of the transaction, Ratcliffe intends to inject £245m from his vast fortune into Man United’s infrastructure in a bid to return the club to the pinnacle of English football.
Financing the overhaul will be a personal commitment from the billionaire and won’t add to Man United’s existing debts.
The deal signifies Ratcliffe’s commitment of around £1.5bn on the very first day of his partial ownership of Man United, including the stock purchase cost and the additional capital for investment.
Although the Glazers have been reluctant to cede control of the club throughout the sale process, Ratcliffe’s investment opens the door for INEOS to assume control of the sporting department.
His imminent arrival has raised speculation about the future of Man United manager Erik Ten Hag, who has come under increased scrutiny in the wake of the teams’s Premier League and European struggles.
Ten Hag’s side sit five points adrift of the top four in seventh place in the Premier League standings while their continental ambitions hang in the balance with the Red Devils rooted to the bottom of their Champions League group.
Recent reports suggest Ratcliffe remains a huge admirer of Ten Hag’s work, but it remains to be seen if the billionaire sticks with the Dutchman when his deal is ratified.
