Billionaire Jim Ratcliffe has completed the purchase of a 25 per cent stake in Manchester United for about US$1.3 billion, defeating rival bids from petro-states and hedge funds.
It brings to an end a lengthy saga that began 13 months ago when United’s unpopular US owners said they were considering “strategic alternatives” to help the club grow.
The American family bought the club for £790 million (S$1.33 billion) in 2005, loading the 20-time English champions with debt.
Jim Ratcliffe has pledged to return the Premier League club to the “top of world football”.
Manchester United have not been crowned Premier League champions since Alex Ferguson’s final season in charge, in 2013.
Through his chemical conglomerate Ineos Group, Ratcliffe will pay $33 a share for a 25% stake in the club, valuing the club at about $5.4 billion, falling below initial hopes of $6 billion.
The decision to bring in Ratcliffe, one of Britain’s richest people, marks the end of a drawn-out sale process that officially begun by the Glazer family just over a year ago.
According to a statement on Sunday:
Ratcliffe will acquire 25% of the Class B shares owned by the Glazer family and begin a tender offer for 25% of the listed Class A shares
Ratcliffe will invest $300 million into club
New investors will get two board seats.
United also announced on Sunday that Ratcliffe’s INEOS company would take control of football operations after years of under-achievement under the Glazer family.
Furthermore, the 71-year-old chairman of the global chemicals giant will provide substantial funds for future investment in the club’s outdated Old Trafford Stadium.
For much of the past year, Ratcliffe battled a rival offer from Sheikh Jassim bin Hamad Al Thani, the third son of Qatar’s former prime minister, for outright control of the club.
In October, the Qatari camp withdrew its offer, claimed to be around the £5 billion mark, but which likely included debt and host of funding extras such as redevelopment of the training ground.
It remains to be seen how Ratcliffe, a self-made billionaire, will manage the club alongside Joel and Avram Glazer, who inherited the team from their father Malcolm.
