More than a year after it was put up for sale, Manchester United said Sunday that British billionaire Jim Ratcliffe had agreed to buy a minority stake in the storied Premier League club.
Ratcliffe, who owns petrochemicals giant INEOS and is one of Britain's richest people, has secured a stake of "up to 25%" in the 20-time league champions and will invest $300 million in its Old Trafford stadium.
As part of the deal, United said Ratcliffe would take responsibility for the club's soccer operations.
Ratcliffe will provide $200 million upon completion of the deal and a further $100 million by the end of 2024, United said. In total the deal will be worth around $1.6 billion, including the $300 million of funding.
The deal is subject to approval by the Premier League.
Ratcliffe, who was born in Failsworth, Greater Manchester, had originally bid to buy the entire majority share of around 69% held by the Glazers, the club's American owners.
"As a local boy and a lifelong supporter of the club, I am very pleased that we have been able to agree a deal with the Manchester United Board that delegates us management responsibility of the football operations of the club," Ratcliffe said.
"In recent times, the full potential of the club's commercial success has not been fully utilized. We are excited to bring the expertise and talent from the wider INEOS Sport group to drive further improvement at the club. Additionally, we will provide funds for future investment into Old Trafford," said Avram Glazer and Joel Glazer, United executive co-chairmen and directors.
The transaction will be funded by Trawlers Limited, a company owned by Ratcliffe, without any debt. United fans have been critical of the Glazers' leveraged buyout, which loaded debt onto the club and resulted in a perceived lack of investment and dividends taken out by the owners.
"Sir Jim and INEOS bring a wealth of commercial experience and a significant financial commitment to the club. Through INEOS Sport, Manchester United will have access to high-performance professionals experienced in creating and leading elite teams," added Avram Glazer and Joel Glazer. "Our goal is to continually improve at every level and bring more success to our great fans in the future."
Last November, the Glazers announced their plans to seek new investment and appointed US merchant bank Raine to oversee the process, including the potential of a full sale.
Ratcliffe Buys Minority Share in Manchester United
After months of negotiations, British billionaire Sir Jim Ratcliffe has purchased a minority share in Manchester United. Ratcliffe had been in competition with Qatari banker Sheikh Jassim bin Hamad Al Thani to buy out the Glazers, who also own the NFL's Tampa Bay Buccaneers. Sheikh Jassim withdrew his bid in October, leaving Ratcliffe in position to make the purchase.
United confirmed that Ratcliffe paid $33 per share for the minority stake.
This investment comes at a time when Manchester United has experienced a decline in performance on the field since the retirement of former manager Alex Ferguson in 2013. The club has not won a title since then.
Despite the hopes of many fans, Ratcliffe's minority investment means that the Glazers will continue to hold majority ownership of the club. Fan protests and chants of "Glazers out" have been common occurrences at games.
United released a statement saying that the goal is to create a world-class football operation and build on the club's existing strengths. Ratcliffe's company, INEOS, initially expressed a desire for a fan-centered approach to ownership and aims to make United the number one club in the world once again.
Ratcliffe, a billionaire with a net worth of $15.1 billion, made headlines last year when he attempted to purchase Premier League club Chelsea. However, his bid was unsuccessful.
In addition to his failed attempt at acquiring Chelsea, Ratcliffe already owns French club Nice and a cycling franchise called Team INEOS. He is also a one-third shareholder of the Mercedes-AMG Petronas Formula One team and competes in the America's Cup with his sailing team, INEOS Britannia.
