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In a recent development reported by the Independent, it has been revealed that Manchester United and the Glazer family are obligated to pay Sir Jim Ratcliffe a significant sum if they decide to abandon a deal for him to acquire a minority stake in the club.
Sir Jim Ratcliffe, a billionaire in the petrochemical industry, has agreed to purchase a 25% stake in Manchester United for £1.3 billion. This stake is expected to increase to 29% following his investment of $300 million into the club’s infrastructure, which will subsequently be converted into additional shares.
The transaction is currently awaiting the green light from several regulatory bodies, including the Premier League. This process is estimated to take approximately eight weeks.
However, should Manchester United and the Glazer family opt out of this agreement before it’s finalised, they are bound to pay Sir Jim a termination fee. This fee includes $48 million along with a sum that will not exceed $18 million to compensate for his expenses, all payable within three business days.
Furthermore, the contract includes specific clauses regarding future share dealings. Sir Jim is granted the first right of refusal for a year if the Glazers, whose ownership in the club will decrease to 49%, decide to sell additional shares.
Conversely, in the event of a complete sale of the club by the Glazers within the next 18 months, Sir Jim would be required to sell his shares at the same price he paid – $33 each.
As part of the agreement, Sir Jim Ratcliffe, a passionate 71-year-old Manchester United fan, will acquire two seats on the club’s board and two on the PLC board.
He plans to delegate these responsibilities to former Juventus CEO Jean-Claude Blanc and Sir Dave Brailsford in the club, and to Ineos CFO John Reece and Rob Nevin, chairman of Ineos Sport, in the PLC.
