A provision giving Ratcliffe authority over sports-related decisions sheds light on why the Ineos owner is prepared to invest an estimated £1.35bn for a 25% co-ownership stake.
Sir Jim Ratcliffe is set to manage football operations, aiming to lessen the scrutiny on the Glazers in his anticipated 25% co-ownership proposal for Manchester United, as informed sources from Telegraph Sport reveal.
Pending agreements among major stakeholders, the Glazers, the club’s much-debated American proprietors, would retain their positions but assume a more subdued role, possibly to placate discontented fans.
The provision giving Ratcliffe the reins over sports-related decisions might illuminate why the Ineos chief is ready to fork out an estimated £1.35 billion, a value notably above market estimates, for just a 25% share.
The momentum for this deal grew markedly after Sheikh Jassim bin Hamad Al Thani, considered the only genuine competitor, withdrew from discussions, disheartened by the Glazers’ evaluation. One source suggests a consensus with Ratcliffe might be finalized by top club personnel within the week, although there are speculations about potential postponements.
Regardless, it’s evident Ratcliffe is on the brink of sealing a recently revised deal. As previously mentioned by Telegraph Sport, he’s keen on incorporating terms that could pave the way for a complete acquisition, signalling his future aspirations.
The Glazer family holds approximately 69% of Manchester United’s ownership, with the remaining shares dispersed among various shareholders in New York. Given the intricate nature of the club’s setup, Ratcliffe has consistently assured the Glazers of his adaptability, notably more than Sheikh Jassim, in navigating foreseeable challenges.
Both parties involved in the deal have downplayed rumours of a finalized agreement with Ratcliffe. An insider noted that the final discussions might shift the current trajectory.
Nevertheless, Ratcliffe has actively pursued guarantees that his terms encompass “direct oversight over football operations,” as described by a well-informed source.
A native of the area and having witnessed United’s iconic treble win at the Nou Camp in 1999, Ratcliffe intends to use his local connections to gain the trust of fans who harbour reservations about the Glazers’ initial continuation at the club.
Upon revealing his interest in acquiring the club last February, Ratcliffe expressed his vision to restore United to its former glory as the world’s premier football club. Substantial investments in infrastructure were integral to these preliminary intentions.
The potential agreement between Ratcliffe and the Glazers gained significant traction after Sheikh Jassim grew weary of the prolonged 10-month negotiations. The Qatari financier had proposed a full acquisition, with his fifth offer around June 7 believed to surpass £5 billion. While discussions persisted intermittently post-June, the Qatari, suspecting the Glazers were aiming for nearly £6 billion, discreetly informed them of his decision to withdraw.
An insider familiar with the Qatari group’s perspective described the American owners’ asking price as “exorbitant and over-the-top.” This reaction surprised those associated with the club’s ownership, asserting that such critique isn’t in line with behind-the-scenes talks.
Currently, the momentum seems to be with Ratcliffe to finalize an agreement, especially after United’s announcement of a “strategic review” last November.
Behind-the-scenes negotiations have sometimes been tense. One informant mentioned that the initial proposals from the Qatari group in early spring were considerably less than £5 billion. A significant individual also hinted that Jassim’s offer might not be uniformly favourable to all stakeholders.
However, those close to Sheikh Jassim argue that his final proposal was nearly twice United’s current market value of $3.2 billion (£2.7 billion). They also note that Jassim had upped his commitment towards infrastructure investments to $1.7 billion (£1.4 billion) in recent times.
A source mentioned, “Sheikh Jassim has earnestly tried to match the Glazers’ lofty valuation for over nine months, seeing himself as the ideal owner.” Yet, others familiar with the Glazers’ mindset disputed this, emphasizing that the promised investments from potential buyers wouldn’t be the sole deciding element.
Before the summer, it seemed only US investment firms, such as Elliott Management, Carlyle Group Inc., Sixth Street Partners, and Ares Management Corp, showed interest in acquiring a minority stake.
Sources close to the Glazers informed Telegraph Sport recently that the family is searching for the “right deal, not just any deal.”
During a video celebrating Ineos’s 25th year, British billionaire Ratcliffe reaffirmed his determination last month. He commented on the significance of purchasing a brand like Manchester United, highlighting the public consequences of a potential failure.
While speaking in an Ineos promotional video, Ratcliffe reflected on the learnings from his “challenging experiences” after purchasing French Ligue One’s OGC Nice and the Swiss Super League’s FC Lausanne-Sport.
He elaborated, “The idea of bidding for Manchester United would’ve seemed improbable a few years back if not for our experiences, many challenging, with Lusanne and Nice.”
Ratcliffe’s company, Ineos, boasting revenues of $61 billion (£52 million), has secured financial backing from banks like Goldman Sachs Group Inc. Additionally, JPMorgan Chase & Co., Rothschild & Co., and Bank of America Corp. are among institutions providing advisory services or capital for the deal.
