Manchester United: Jim Ratcliffe’s Investment and the Future of the Club’s Ownership

2023-10-18 07:01:07

Manchester (United Kingdom) (AFP) – Nearly a year following Manchester United opened the door to investment offers, it seems that British billionaire Jim Ratcliffe had the honor of purchasing 25 percent of the shares in the English football giant.

Published on: 10/18/2023 – 09:01 Last updated: 10/18/2023 – 08:59

4 minutes

The club’s management is moving to approve an offer of $1.6 billion from Ratcliffe, but the Glazer family’s continued control of the club has been a bitter disappointment for many Red Devils fans, who were hoping for the exit of the unpopular American owners.

The Manchester United Supporters’ Association said in a statement this week: “It would be too optimistic to believe that the Glazers are acting in the best interest of the fans or making ownership decisions that are not focused on their own priorities.”

Manchester United has faced varying stages since the Glazer family took over the club in a 2005 deal amounting to $790 million. The skill of former coach Sir Alex Ferguson kept the team at the top of English and European football in the early years of the Glazer era.

But United have not won the league since Ferguson retired in 2013, and they also lifted the Champions League title for the last time in 2008.

Things have gotten worse this season, as the team occupies tenth place under the leadership of Dutchman Erik Ten Hag, and faces the risk of a humiliating exit from the first round of the Champions League, following losing the first two matches in the group stage for the first time ever.

-Where will the money go?-

According to available data, Ratcliffe, founder of the giant petrochemical company Ineos, will seek to take over the management of the club’s football operations in exchange for his large investment.

However, many wonder how an owner with minimal stakes can have influence in practice to control the basic operations of the company.

In this regard, Gary Neville, the former United captain turned analyst and businessman, asked on social media, “How can a small shareholder stop the cultural deterioration across an entire organization if the people who oversaw this deterioration still own a majority of the shares?”

In addition, it is not clear where the returns from Ratcliffe’s investment will go. Figures from March showed that the club’s debts reached $970 million, while securing financing has become urgent and necessary for the process of renovating the club’s stadium, something that has been awaited for a long time.

Old Trafford remains the largest stadium among English football clubs, with a capacity of more than 74,000 fans.

However, the famous stadium has reached a stage of old age and is in dire need of renovation, just as United’s competing clubs did. Manchester City’s Etihad Stadium was chosen among the stadiums that will host the 2028 European Cup, which Britain and Ireland won the right to host.

For example, there is no large screen capable of showing replays to fans in cases of the use of assistant referee technology (VAR) at Old Trafford, as videos on social media showed fans soaking wet during the 1-0 defeat once morest Crystal Palace last month. Due to water leaking from the ceiling.

“Old Trafford Stadium requires significant investment in the surrounding land,” Neville said. He asked, “Does this deal affect this demand positively, or does it leave it a concrete wasteland?”

Manchester United’s Old Trafford stadium needs a major redevelopment © Ollie Scarfe/AFP/AP

When United first announced the process of “exploring strategic alternatives for the club” in November 2022, “redevelopment of the stadium and infrastructure” was one of the options available with a new capital injection.

Neville also spoke regarding the need to upgrade the club’s training ground.

However, following 11 months of a slow and exhausting process, United fans fear the Glazers might line their own pockets by selling some of their shares while maintaining control.

The fans’ association said: “If reports are correct regarding Ineos acquiring a 25 percent stake in our club, there are a number of questions regarding the deal that need to be clarified before fans can make any judgment on its merits.”

He added, “The result must include new investments in the club. It cannot only be regarding the interests of shareholders, whether current or new.”

© 2023 AFP

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