Sir Jim Ratcliffe is close to completing his 25% purchase of Manchester United.
In a best-case scenario, an agreement could be reached next week, although sources have ruled out any announcement on Monday with all focus on Sir Bobby Charlton’s funeral. There is optimism things will be finalised in the next few weeks, though, even if next week proves a little ambitious.
Ratcliffe has been finalising a deal for a minority stake with an eventual path to control. However, sporting control will come immediately with Ratcliffe’s INEOS forming a committee alongside Joel Glazer to make football decisions.
Ratcliffe will be hands on, but CEO of INEOS Sport, Jean-Claude Blanc, and Sir Dave Brailsford are understood to have key roles earmarked.
Ratcliffe will pledge an initial $300m towards club infrastructure. This will come from his personal funds and, if all goes to plan, be injected between now and the end of the year.
But this number is only the start of long-term pledged investment from INEOS. The group are well aware they need far more than $300m to improve Carrington, renovate Old Trafford, grow the Academy and help fund the men’s and women’s teams.
It’s understandable, with an initial 25%, that Ratcliffe would stagger his pledged investment. But there remains a commitment to $2bn on top of the $1.7bn paid for the shares. This is consistent, and even slightly higher than, Ratcliffe’s pledged investment for Chelsea when he made a late move to try and buy the club in May 2022.
The number has been calculated during due diligence, including a day-long meeting of presentations in Manchester in March. Ratcliffe attended in person believing it was important for relationships. It’s also why he’s been directly engaged throughout the process – something that’s typical in all his major business deals.
Ratcliffe’s main rival, Sheikh Jassim bin Hamad al Thani, had pledged $1.7bn in investment prior to his withdrawal. The Qatari banker wanted to buy 100% of the club but failed to agree a price with the Glazers and will not be returning to the process.
In doing so, and over time, Ratcliffe will use some of his personal funds and no new debt will be saddled on Manchester United. Any borrowing will be done via INEOS or non-club means.
Ratcliffe wants his Manchester United purchase completed in time to influence to the January window, although club sources stress they aren’t expecting dramatic spending mid-season.
The bigger priority is a 100-day review and a transitional period which could see hierarchical change and put the role of CEO Richard Arnold under threat.
Ratcliffe is also looking at a sporting director, a process started back in March, with Paul Mitchell a leading contender and keen on the job, as Caught Offside exclusively revealed.
Ratcliffe doesn’t want to pre-judge Erik ten Hag before a deal is complete, but naturally if results don’t improve his position will be considered in due course. That’s simply the reality of football, especially at a club like Manchester United.
The priority, however, is to finalise everything with the Glazers first rather than to make football decisions before formally inside the club.
In a best-case scenario, a deal could be announced within the next seven days, but sources stress it could also still be a few weeks away.
And it’s important to note there will be a gap between any announcement and then formal completion. This is because of logistical and legal tasks, inclining the Owners’ and Directors’ test which is yet to be undertaken simply because it comes later in the process.
Bollocks to the Jim PR