The founder of the petrochemical group Ineos has his involvement with the English football record champions cost well over a billion euros. The fans are skeptical.
Jim Ratcliffe is the new strong man at Manchester United.
Eric Gaillard / Reuters
Has a savior actually appeared to Manchester United? Jim Ratcliffe’s sensational entry as a shareholder in Manchester United was announced on December 24th. Ratcliffe probably also wants to be seen as a savior. And no one denies that England’s record champions urgently need one after the worst start to the season in the club’s history.
The shareholders are a two-class society
Ratcliffe, founder and chairman of the petrochemical group Ineos, agreed with the Glazer family after grueling negotiations to acquire up to 25 percent of the club for 1.2 billion euros and to take responsibility for the sporting area. This makes United the most valuable sports club in the world at the moment.
Club statement.
— Manchester United (@ManUtd) September 6, 2023
The intricacies of the business show the complexity underlying Ratcliffe’s entry. The club shares are split into two classes, A and B, with B shares having ten times the voting rights of A shares.
The A package is owned by various investors and is traded on the New York Stock Exchange. The B package is exclusively in the hands of the six Glazer descendants who inherited the traditional business from their late father Malcolm in 2014. They can control the club via this share structure.
The agreement with Ratcliffe stipulates that the Glazers will for the first time sell a significant portion of the B shares: 25 percent. In addition, the 71-year-old is offering all A-share holders the opportunity to participate in a quarter as part of a public tender. At the respective price of 33 dollars each, although the share price was just 20 dollars at the close of trading on Friday. The offer is presumably intended to win the favor of the shareholders.
David Brailsford is expected to play a key role
Ratcliffe, who grew up in Manchester, concluded the transaction through the company Trawlers Limited, which he fully owns and is independent of Ineos. The name is a reference to United legend Eric Cantona, Ratcliffe’s favorite player.
This is how things continue at Manchester United.
Youtube
Joining Manchester United is a childhood dream come true for Ratcliffe. In addition to the expenses of purchasing shares, he committed to providing a further quarter of a billion for the stadium and training infrastructure in need of renovation. And announced that it would use its Ineos sports network. Ineos sports director David Brailsford, the mastermind behind the British cyclists’ successes, is likely to play a key role in day-to-day business.
However, United supporters have mixed feelings about the deal so far. The fan association was hopeful that Ratcliffe’s entry could be a step in the right direction. But at the same time she is skeptical because the Glazers are still in charge. How the mood around the club develops will largely depend on Ratcliffe’s work.
