INEOS investment in Man United ratified by Premier League – what does it mean for the club?
A deal for INEOS to buy 25% of Manchester United has been officially approved by the Premier League. This article explores what the deal means for the club and the fans.
What's the deal?
INEOS has purchased a 25% stake in Manchester United in exchange for sporting control of the club. The deal, costing around £1.3 billion, allows INEOS to oversee the football operations while the Glazer family remains in charge. INEOS has also injected $300 million into the club for infrastructure improvements at Old Trafford and will have the final say on football-related decisions.
The Glazer family and other Class A shareholders will receive the same price of $33 per share. INEOS will acquire Class A shares, which are publicly traded on the New York Stock Exchange, as well as some of the Glazers' Class B shares, which hold 10 times the voting rights.
As part of the deal, Sir Dave Brailsford, the former mastermind of cycling's Team Sky, and INEOS Sport CEO Jean-Claude Blanc will join the board.
Is this the end of the Glazer era?
No, it is not. The Glazer family will still retain ownership of around 69% of the club, with the remaining shares held by non-family members. INEOS's bid initially targeted the Glazers' shareholding, but it has evolved to give INEOS a majority stake of slightly over 50%. This allows Joel and Avram Glazer to remain as minority shareholders.
Large portions of United's fanbase have long protested against the Glazers' ownership, which was marked by a heavily leveraged buyout in 2005. However, the Glazers have chosen to stay on, and it will be interesting to see how Ratcliffe and INEOS navigate this situation.
INEOS's bid for United was focused on making the club the number one club in the world again and creating a fan-centered approach to ownership. While the Glazers will still be in overall charge, INEOS aims to bring fresh impetus to the club's football operations and provide investment.
What does Ratcliffe's investment mean for United?
Sir Jim Ratcliffe's investment will bring changes to United's football operations. The club's football operation will now be overseen by INEOS, and Ratcliffe's investment of $300 million will be used for infrastructure improvements at Old Trafford and other facilities.
As part of the deal, Ratcliffe plans to review and assess the club's existing operations, including the position of manager Erik ten Hag. Ratcliffe and INEOS executives, such as Sir Dave Brailsford and Jean-Claude Blanc, will play influential roles in shaping the club's future strategy.
Ratcliffe also intends to invest in United's women's team and improve the overall performance of the club. However, it should be noted that Ratcliffe has acquired a minority stake and has not committed to wiping out the club's existing debt.
