- Fresh reports suggest that Sir Jim Ratcliffe could be forced to sell his Manchester United shares
- The British Billionaire acquired a 25% stake of the club to a tune of £1.3 billion
- His stake gave him control of the club’s football operations
Fresh reports suggest that Sir Jim Ratcliffe could be forced to sell his Manchester United shares within a mere 18 months of finalizing his partial takeover.
The announcement of Ratcliffe’s acquisition of a 25 per cent stake in Man United for £1.3 billion was made on December 24, 2024.
It designated the British billionaire to assume control of the club’s football operations. Although the deal is still pending full approval, it is anticipated to be officially ratified around mid-February.
In the past few weeks, the 71-year-old has been seen in and around the team’s training facilities. Ratcliffe has also been spotted in the stands at Old Trafford during the Red Devils’ match against Tottenham.
He was accompanied by the legendary former manager, Sir Alex Ferguson.
Why Will Sir Jim Ratcliffe Sell His Shares at Manchester United?
Recent documents have disclosed that Ratcliffe faces the prospect of selling his stake less than two years after finalizing his buy-out, as reported by The Times.
Sir Jim Ratcliffe. Photo by Daily Express
A tender document has surfaced, outlining specific regulations pertaining to the billionaire’s partial acquisition of the club. The US Securities and Exchange Commission (SEC) has a separate submission on this.
The Glazers are barred from initiating a sale within a year of Ratcliffe’s takeover completion. However, once this initial period elapses, they gain the liberty to sell the club outright.
While Ratcliffe might possess the right of first refusal in writing as consent for sale from his company Trawler Ltd. Still, the Glazers family is allowed to sell the club to another interested party after that timeframe elapses.
What is the Risk of Sir Jim Ratcliffe Selling His Shares?
The potential risk for the 71-year-old lies in the possibility of a substantially higher bid emerging independently. It will put him in a position where he is compelled to divest his shares.
Ideally, he is unable to secure the entirety of the Red Devils and assume sole ownership.
Consequently, for Ratcliffe to maintain his stake if the Glazers opt to sell in approximately 18 months, he would need to match the highest bid or forfeit his ownership interest.
The documents in possession of the US Security and Exchange Commission indicate as much. They spell out how difficult it is for the British billionaire to get sole ownership of Manchester United.
“For so long as the Glazer parties are the majority holder, following the date that is 18 months after the closing date and in connection with any sale of the entire company, the Company Board may require the Trawlers party to sell all of their company ordinary shares and take such other actions as are reasonably necessary to effect the full sale,’ reads the document.
“If the sale occurs within three years of the closing of the offer, the Trawlers parties must receive at least $33 per share, which is the same price as the offer price,” it states.
The Glazers Family who own a majority stake at Manchester United. Photo/Daily Post Nigeria
Ratcliffe faces a considerable task in steering United back to success following a disappointing season that saw their early exit from Europe following the Champions League group stage.
This setback is projected to cost the club a significant sum, with United now anticipated to lose out on £45 million.
In the latest financial update, club officials have revised their yearly expectations, lowering anticipated revenues from £635 million to £665 million, down from the previous guidance of £650 million to £680 million.
The disclosed figures, indicating a loss of £25.8 million for the period, will be of particular interest to Sir Jim Ratcliffe, the incoming 25 percent investor, as his proposal is set to be officially approved in mid-February.
Despite the financial challenges, Ratcliffe may find encouragement in the first-quarter revenues, which have risen by 9 percent year-on-year to £157.1 million.
The club attributes this increase to its strong economic foundations.
You must be logged in to post a comment Login