Sir Jim Ratcliffe’s Ineos has finalized a £1.03 billion purchase deal with the Glazers, granting them control of key football operations at Manchester United. This arrangement includes the requirement for Ineos to be consulted on decisions regarding the future of manager Erik ten Hag and potential player transfers.
As stated in the terms of the agreement, United is prohibited from making significant decisions without the approval of Ineos during the pending acquisition of a 25 per cent stake in the club. Moreover, under the terms of the deal, the Glazers will cede control of football operations to Ratcliffe, while also reducing their shareholding to 49 per cent while Ratcliffe holds a 29 per cent stake.
Additionally, the agreement specifies that no dividends will be paid out for a minimum of three years, with a focus on significant investment in the first team squad and Old Trafford. The Glazers also have the right to enforce compliance with a future outright sale by Ineos after 18 months, a provision known as the “drag-along rights” clause.
Despite the recent victory against Aston Villa alleviating some of the pressure on Ten Hag, it is anticipated that Ineos’ involvement in decision-making processes will have a substantial impact on the club. Ineos is eager to appoint a new director of football, and any decisions related to managerial staff, player transfers, or sales during the January transfer window will necessitate consultation with Ineos.
The ongoing discord between Ten Hag and Jadon Sancho also comes under scrutiny, with speculation that Ineos would expect to be involved in any potential departure of Sancho.
The comprehensive details of the deal were disclosed in a 241-page filing to the US Securities and Exchange Commission, underscoring Ineos’ considerable influence on United’s football operations. Despite this, Sir Dave Brailsford, the Ineos director of sport, is anticipating joining the football club board at United, subject to the deal’s approval.
The agreement also includes provisions for reinvesting funds into infrastructure and the team, with an additional £237 million allocated by Ratcliffe for investment in Old Trafford. Nevertheless, it is understood that further investment will be required in the future to facilitate the redevelopment and expansion of the ground.
In addition to Ratcliffe’s influence on the club, the SEC filing highlights the imminent arrival of Brailsford and Ineos Sport CEO Jean-Claude Blanc, who will join the football club board at United. This emphasizes the significant restructuring and influence that Ineos is expected to bring to the football club.
It is evident that with Ineos’ pending acquisition of a stake in Manchester United, substantial changes to the club’s operations are imminent. Fans and stakeholders alike will be closely monitoring how Ineos’ involvement and influence will shape the future of the club.