British petrochemical billionaire Sir Jim Ratcliffe has made headlines after purchasing a 25% stake in the renowned English Premier League soccer club, Manchester United. The sale was confirmed by both the club and Ratcliffe-controlled INEOS, a multinational conglomerate based in London.
Under the agreement, Ratcliffe will acquire 25% of Manchester United's Class B shares and up to 25% of its publicly available Class A shares. Additionally, he will provide an additional $300 million intended for future investments into Old Trafford, the club's historic stadium. The transaction will be carried out at a price of $33.00 per share, which is the same for the Glazer family, the majority owners, and Class A shareholders. On Friday, the shares of Manchester United (MANU) closed at $19.81.
Manchester United was valued at $6 billion by Forbes in May, making it one of the most valuable soccer clubs in the world, second only to Real Madrid. However, the club's shares had experienced a decline of nearly 13% in 2023.
Before the deal is finalized, it must receive approval from the English Premier League. Once completed, Ratcliffe and INEOS will join forces with the Glazer family to enhance and strengthen Manchester United's football operations. The goal is to build a world-class football operation that capitalizes on the club's existing strengths, including its successful off-pitch performance.
Rumors of the Glazer family's willingness to accept offers had circulated for over a year. The family, based in Florida, has owned Manchester United since 2005 and also owns the NFL's Tampa Bay Buccaneers. Several rounds of bids were made, with potential buyers such as Qatari investor Sheikh Jassim bin Hamad Al Thani showing interest before ultimately withdrawing his bid in October.
Under Glazer ownership, Manchester United has faced significant challenges in recent years. The club, which has had four full-time managers since the departure of long-time boss Sir Alex Ferguson in 2013, have struggled to replicate their earlier success. They have not won a UEFA Champions League title since 2008 and have not clinched a Premier League title since 2013. Currently, Manchester United sits in eighth place in the Premier League table.
Sir Jim Ratcliffe, 71, was born in Failsworth, Lancashire, which is part of Greater Manchester. Notably, Ratcliffe describes himself as "a local boy and a lifelong supporter" of Manchester United. With a net worth of $19.1 billion, he is considered one of Britain's wealthiest individuals according to Bloomberg's billionaire index. Ratcliffe has ventures in the sports world, including owning soccer clubs OGC Nice in France and FC Lausanne-Sport in Switzerland. In May 2022, he made a failed bid to acquire London club Chelsea, which was eventually sold for $5.3 billion.
With Ratcliffe's investment, Manchester United hopes to revitalize its on-field performance and regain its position as a dominant force in English and European football. The partnership between Ratcliffe, the Glazer family, and the club looks to pave the way for a successful future.