With minor stake, Ratcliffe eyes major shake-up at Manchester United

The British billionaire's arrival at Old Trafford could potentially be a big step towards helping the once mighty club regain its past glory.

Bengaluru: On Sunday, Christmas eve, Manchester United put out a statement announcing that Sir Jim Ratcliffe, the Chairman of INEOS, will acquire 25 per cent of Manchester United’s Class B shares and up to 25 per cent of the club’s Class A shares for a reported $1.6 billion.

The statement also confirmed that Ratcliffe will invest $300 million into the club, while INEOS will take over the management of football operations from the Glazer family, which include all aspects of men’s and women’s football operations and academies, along with two seats on Manchester United’s Programme and Logic Controllers and Football Club boards.

Ratcliffe will acquire the interest for $33 a share.

Who is Sir Jim Ratcliffe?

A lifelong Manchester United fan, Ratcliffe was born in Failsworth, Manchester. The 71-year-old currently serves as the founder, chairman and majority owner of the INEOS chemicals group. With a net worth of around $23.3 billion, Ratcliffe is one of the richest people in the United Kingdom.

Who are INEOS Sports?

INEOS Sports own French football club Nice, Swiss team FC Lausanne-Sport, and work with Ivory Coast’s Racing Club Abidjan. Among their other sporting ventures, INEOS are behind the Grenadiers, a successful cycling team and are partners of the Mercedes Formula 1 team.

What changes will this takeover bring?

The Glazer family, unpopular figures among the Red Devils’ fans since their leveraged buyout of Manchester United in 2005, will remain majority shareholders.

The Glazers accepted Ratcliffe’s offer to buy a minority stake despite interest from both Qatari businessman Sheikh Jassim bin Hamad Al Thani and Ratcliffe for a full takeover. Glazers had announced in November 2022, that they were “Looking at strategic options.”

While the shared objective of this takeover is to get back Manchester United to their glory days, there are other short-term objectives that need to be dealt with. The first is a complete overhaul of the senior executive team and the recruitment team. Former Manchester United CEO Richard Arnold resigned recently. INEOS Director of Sport Sir Dave Brailsford and INEOS Sport CEO Jean Claude Blanc will fill in and acquire seats on the club board.

Brailsford oversees all of INEOS’s sports investments but is not as experienced in football. Blanc, a former executive at Juventus and Paris Saint-Germain, will focus on improving player recruitment. The club’s statement revealed that “Sir Jim Ratcliffe and INEOS group will provide an additional $300 million intended to enable future investment into Old Trafford.” The stadium itself needs improved infrastructure.

Why was there a need for change?

Since the departure of Sir Alex Ferguson, Manchester United have seen a steady decline in their performances on the pitch. In the preceding decade, the club has failed to win any major silverware barring one Europa League and an FA Cup crown. The lack of stability in managerial and executive decisions resulted in some poor transfer dealings and fund management, and there was a marked need for change. The Glazers’ refusal to sell the club resulted in debts mounting close to $600 million, as per Reuters. This season, United are currently languishing eighth in the table, despite appending nearly $1.1 billion in the last six years on transfer dealings.

What does it mean for the future of Manchester United?

While the initial takeover period will invite plenty of scrutiny, securing the management of football operations means that the INEOS Sport division will take immediate control of the footballing side. It is important to note that there is no formal agreement in place for Ratcliffe to buy the Glazers’ shares in the future, but the INEOS chairman does have the right of first refusal on any sales in the future.

This decision might prove to be a major step in the right direction, with the financial commitment merged with INEOS Group’s experience, potentially paving way for a gradual return to United’s glory days.