Sir Jim Ratcliffe set to buy 25% stake in Man United

British billionaire Sir Jim Ratcliffe is on the verge of buying a notable stake in Manchester United which would mean his INEOS side will have “sporting influence” at the Old Trafford, as per sources. 

According to a reliable source Sir Ratcliffe was "more savvy in his deal execution" than rival bidder Sheikh Jassim, a billionaire based out of Qatar who withdrew his interest in completing a takeover of the club after failing to strike a deal with American owners, the Glazer family.  

The exit of Sheikh Jassim means Ratcliffe, the founder of chemicals company INEOS, will likely acquire a 25% shareholding from the Glazers, who own 69% of the club. The remaining shares are with smaller investors on the New York Stock Exchange. 

As per the deal, Ratcliffe is willing to pay an inflated price in exchange for control over specific decision making, which would not otherwise be guaranteed by a minority investment.

The sources have claimed that Ratcliffe is ready to pay between £1.3 billion ($1.576 billion) and £1.5 billion ($1.82 billion) as stake despite United current value sitting at nearly £2.6 billion.

The agreement could be signed off as early as the ongoing week. This would mean that the Glazers would retain a majority stake. 

Glazers staying at the club can provoke a large section of the club supporters who were very eager to see the American family commit a full sale. 

Ratcliffe, who also owns Swiss team Lausanne Sport and French club Nice, was born and brought within 10 miles from Old Trafford and grew up watching United. 

While initially Sheikh Jassim’s bid was seen as the one to succeed during the beginning of the process because of the funds at his disposal but as sources tell us Ratcliffe structured a deal in such a way that works for Galzers and authorises the brother duo of Joel and Avram Glazer to continue serving at the club as its co-chairman.

If Ratcliffe’s deal goes through, it would also meet the needs of the four other Glazer siblings-Kevin, Bryan, Edward and Darcie–which is to reduce their stakes in the club. 

The Glazers' own United valuation of roughly £6 billion saw Ratcliffe’s primary rival Sheikh Jassim walk out of the deal. 

Sheik Jassim was willing to pay around £5 billion for 100% of the club, while also promising to clear out the debt incurred during Glazers’ ownership. They also committed to invest in the club facilities including the training ground, club amenities and much more. 

A source close to the bid of Sheikh Jassim called the Glazers' valuation as “fanciful and outlandish.”

While Sheikh Jassim and his people stood firm on the 100% buyout, Ratcliffe and INEOS altered their offer during the bidding process, which commenced in November. 

Ratcliffe opened his bid by offering to buy Galzers’ 69% share, but amid uncertainties about whether all Glazer siblings want to sell- specifically co-chairman Joel and Avram Glazer- he restructured his approach to select a minority stake.