Sir Jim Ratcliffe’s offer to buy Manchester United would see the six Glazer siblings remain at the club on a temporary basis in a development which is holding up the takeover bid.
INEOS chief Ratcliffe is one of the two frontrunners to buy Manchester United along with Qatari businessman Sheikh Jassim bin Hamad al-Thani.
The pair recently submitted their third and final bids, with Sheikh Jassim proposing a complete buyout and Ratcliffe making an offer to take a controlling interest in the club and allow Joel and Avram Glazer to temporarily retain a 20% stake in United.
However, Ratcliffe’s offer includes a clause to see the family leave the club entirely on a phased basis. A detailed report from the Financial Times explains how all six Glazers would retain stakes in United after a Ratcliffe takeover, but would be contractually obliged to depart permanently years later with INEOS buying their remaining shares.
At least two of the six Glazer siblings – Joel and Avram – are understood to have preferred an option which would see an outside investor buy a stake in the club to help finance huge capital projects like the redevelopment of the Old Trafford stadium and Carrington training ground. However, a change of ownership is now the likely outcome.
Several US investment companies – Elliott Management, the Carlyle Group and Ares Management – are proposing minority investment into the club, which would see the Glazers remain in position at the head of United but with extra spending power available. Yet that is now viewed as unlikely.
Bryan, Darcie, Edward and Kevin also remain at the club and are believed to be the siblings pushing for a permanent exit, with Joel and Avram retaining more of an attachment to United. This lack of consensus between the family is said to be delaying the deal.
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In a somewhat convoluted process, Ratcliffe would buy enough shares from the Glazers to assume a controlling stake in the club in the initial takeover. The second phase of the move would then see him buy out the remaining shares of the Glazers over a course of years.
Ratcliffe is believed to have lodged a higher offer than the Qatari-based group, although the breakdown of the nature of the deal is different. Sheikh Jassim’s bid is with a view to a full takeover of the club, while Ratcliffe’s would see the Glazers remain as minority shareholders until 2026, when they would then depart.
The Glazer family have continually pushed back their deadline to complete a sale of the club with the ownership situation at Old Trafford still unclear, despite their intentions of listening to offers – both majority and minority investments – coming almost six months ago.
The Glazers are deeply unpopular among supporters after their leveraged buyout in 2005 saddled the club with enormous debts, while on the field the Red Devils having gone a decade without winning the Premier League title. United fans want the Glazers to relinquish the club in its entirety.
