Jim Ratcliffe’s INEOS set to own 25% of Manchester United: What this means for the football club

What are the terms of the deal?

The deal between the Glazer family, majority owners of Manchester United since 2005, and Jim Ratcliffe’s INEOS is to buy 25 per cent of the football club, for around £1.3billion (roughly $1.6 billion). Ratcliffe will acquire Class A shares, traded on the New York Stock Exchange, as well as some of the Glazers’ Class B shares, each of which carry 10 votes. The Glazer family and other Class A shareholders receive the same price of $33 per share (more on this later).

Although not a complete buyout, as most United fans had hoped for when the prospect of a “full sale” was mooted by the Glazers, the deal should bring fresh impetus to operations. Notably, INEOS will take sporting control of the club and also invest $300million (£239m) in it — the first outside investment during the Glazers’ near-19-year ownership.

The $300million cash injection will be used to renovate Manchester United’s somewhat dilapidated Old Trafford stadium, and other infrastructure.

What are Class A & Class B shares?

Manchester United split their shares into two classes — Class A and Class B. Each Class A ordinary share is entitled to one vote, and is not convertible into any other share of the capital stock. Each Class B ordinary share is entitled to 10 votes, and is convertible into one Class A ordinary share at any time.

The Glazers owned all of the Class B shares — giving them significantly more voting rights per share. Class A shares, on the other hand, are publicly traded on the New York Stock Exchange. Previously, when members of the Glazer family sold their Class B shares, they were automatically converted into Class A shares. However, Ratcliffe’s Class B shares will retain their full voting power following a change to the company’s rules recently voted through by shareholders.

But, will the Glazers still be in control?

Yes and no. The deal will see INEOS takeover football operations although the Glazer family will still remain overall in charge. This means that INEOS, not the Glazers, will be in charge of major football related decisions such as transfers, scouting, coaching appointments, etc. For instance, the future of manager Erik ten Hag will be in the hands of INEOS, not the Glazers.

But Glazers, still the largest shareholders, will take commercial decisions.

As part of the deal, Dave Brailsford, the former mastermind of cycling’s Team Sky and Director of Sport at Ineos, and Jean-Claude Blanc, CEO of INEOS Sport, will join the Manchester United board.

Who is Jim Ratcliffe, and what is INEOS?

Ratcliffe, 71, owns petrochemicals giant INEOS, comprising 36 businesses, at 194 sites, in 29 countries, and with more than 26,000 employees. His net worth, according to the Bloomberg Billionaires Index, is $13.6 billion, but the annually compiled Sunday Times Rich List puts it at £29.6 billion, making him the second-richest man in the UK.

INEOS is the fourth-largest chemical company in the world, and produces chemical and oil products used across industry and everyday life. INEOS has invested in a broad range of sports ventures. INEOS Sport is Principal Partner and third equal owner of the Mercedes-AMG Petronas F1 Team. It also fully funds the INEOS Grenadiers cycling team and the INEOS Britannia sailing team, in addition to partnering New Zealand’s All Blacks rugby team, and the NN running team, whose most famous member is marathon legend Eliud Kipchoge.

In football, INEOS owns French Ligue 1 side OGC Nice and Swiss Super League side FC Lausanne-Sport.