INEOS chairman Jim Ratcliffe has agreed to purchase a 25% share in Manchester United for about £1.25 billion ($1.6 billion) and will take over the Premier League club’s football operations, the company said on Sunday.
The 71-year-old British businessman will also contribute $300 million to future improvements at the club’s Old Trafford stadium.
“Manchester United announces that it has entered into an agreement under which chairman of INEOS, Sir Jim Ratcliffe, will acquire 25% of Manchester United’s Class B shares and up to 25% of Manchester United’s Class A shares and provide an additional $300 million intended to enable future investment in Old Trafford,” the club said in a statement.
“As part of the transaction, INEOS has accepted a request by the board to be delegated responsibility for the management of the club’s football operations.”
Ratcliffe stated his desire to see Manchester United return to the top of European football and stated his commitment to the long term.
“As a local boy and a lifelong supporter of the club, I am very pleased that we have been able to agree a deal with the Manchester United board that delegates us management responsibility of the football operations of the club,” he said.
“While the club’s commercial success has ensured that there have always been funds available to win trophies at the highest level, this potential has not been fully realized in recent times.”
“We will bring the global knowledge, expertise and talent from the wider INEOS Sport group to help drive further improvement at the club.”
The arrangement puts an end to more than a year of uncertainty about the club’s ownership position and ushers in a new era for the ailing Premier League side.
The Glazers, who acquired United for £790 million in 2005, said in November 2022 that they were examining “strategic alternatives” to help the club expand, kicking off a lengthy process.
Ratcliffe and Qatari financier Sheikh Jassim bin Hamad Al Thani made competing proposals for a full acquisition in the range of £5 billion, but they fell short of the Glazers’ value.
Sheikh Jassim withdrew from the process, while Ratcliffe pursued a minority stake.
United have not won the Premier League title since Alex Ferguson’s last season as manager in 2013.
They are now seventh in the Premier League, 12 points behind league leaders Arsenal, and have been eliminated from both the League Cup and the Champions League.
Manager Erik Ten Hag’s job is also set to come under pressure after the Dutch coach failed to capitalize on winning the League Cup last season, which ended United’s six-year trophy drought.
Ratcliffe’s firm is heavily involved in sports, owning the French Ligue 1 club Nice, the Swiss club Lausanne-Sport, and the INEOS Grenadiers cycling team.