British billionaire Sir Jim Ratcliffe’s acquisition of a 25% stake in Manchester United has gained approval from the Premier League, marking a significant deal valued at around $1.3 billion (£1.03 billion).
While still pending approval from the Football Association, this development grants Ratcliffe’s Ineos Group control over football operations, with the Glazer family retaining a majority stake in the club.
The Premier League’s approval is contingent on the completion of the deal.
The league stated, “The Premier League now awaits confirmation of the transaction’s completion,” and acknowledged that Ratcliffe, 71, has also signed the owners’ charter.
The deal is the first to be agreed under the updated owners’ and directors’ test, incorporating a review by an independent oversight panel.
Ratcliffe’s agreement, reached on Christmas Eve, includes a substantial investment of $300 million (£236 million) earmarked for future enhancements to Manchester United’s Old Trafford stadium.
The businessman is set to acquire 25% of the club’s class B shares, predominantly owned by the Glazer family, who currently hold a 69% majority stake with almost all the voting rights.
Additionally, Ratcliffe has the option to purchase up to 25% of the club’s class A shares listed on the New York Stock Market, each valued at $33.
As of the latest update to the US Securities and Exchange Commission (SEC), 36.7% of class A shares have already been tendered, surpassing the 25% agreed upon by Ratcliffe.
The extension of the deadline for holders of class A shares to tender them for sale until Friday signifies ongoing developments in the acquisition process.
With this deal, Ineos assumes control over both men’s and women’s football operations, academies, and secures two seats on the Manchester United PLC and Manchester United Football Club boards.
Ratcliffe, having visited Old Trafford and the club’s training ground, awaits final approval, with the process reportedly progressing positively towards completion.
The Glazer family, who acquired Manchester United for £790 million in 2005, has been considering strategic alternatives, expressing their intention to explore selling the club in November 2022.