Manchester United may experience a substantial equity boost from Sir Jim Ratcliffe, as reports suggest he is contemplating a deeper financial involvement than just the anticipated 25% club stake.
The potential move by Ratcliffe comes on the heels of Sheikh Jassim Bin Hamad Al Thani’s decision to step back from acquiring the club, paving the way for the 71-year-old tycoon to step in.
Although Sir Jim is on track to obtain up to a quarter of the Red Devils, an official statement confirming the deal might not be imminent due to some lingering complexities.
The Premier League Owners’ and Directors’ test is another procedural hoop that the INEOS magnate may have to jump through, contingent on the acquisition giving him sporting control.
Speculations suggest a powerful trio will be steering the sporting reins at United, with Sir Jim, Sir David Brailsford, and Joel Glazer expected to collaborate in a decision-making committee. This group’s primary responsibilities would encompass pivotal decisions like determining transfer allowances and endorsing player signings.
Journalist Ben Jacobs has hinted at a scenario where Ratcliffe’s financial commitment exceeds the anticipated quota for the 25% stake.
Jacobs remarked, “Understand Sir Jim Ratcliffe could potentially inject new equity into Manchester United in order to get more than just 25%.”
He went on to highlight, “This extra capital, which goes directly into the club, could be used on any project, including stadium development or transfers.” Further, it was indicated that, “There is an agreement in principle on the 25% stake and its valuation, but other aspects, including the A/B structure, are still being negotiated.”
Delving into the technicalities, Jacobs mentioned, “The cleanest structure to put to the board is a hybrid one. Ratcliffe could buy 25% of Glazers B shares (17.25%) and 25% of A shares (7.75%). But things are still being finalised.”
Understand Sir Jim Ratcliffe could potentially inject new equity into Manchester United in order to get more than just 25%. This extra capital, which goes directly into the club, could be used on any project, including stadium development or transfers.🔴 pic.twitter.com/YbIH09J4oa
— Ben Jacobs (@JacobsBen) October 19, 2023
For the Old Trafford faithful anxious about the Glazers retaining influence, Ratcliffe’s readiness to invest beyond the initial scope offers a glimmer of optimism.