Ratcliffe mulls buying Manchester United minority stake
Sir Jim Ratcliffe, the petrochemicals billionaire, is contemplating buying a minority stake in Manchester United Football Club rather than seeking full control, in an effort to end a nearly 10 months-long process to resolve the club’s future ownership.
Sky News has learnt Sir Jim’s Ineos Sports vehicle has proposed to the controlling Glazer family a deal that would see it acquiring chunks of both their shares and the stock publicly traded on the New York Stock Exchange (NYSE) in equal proportion.
That offer would entail making an offer at the same price for both sets of shares, with one suggestion on Monday evening being that Sir Jim could seek a roughly 25% stake in the club as part of his latest proposal.
It would need to be pitched at a valuation that the Glazers would accept, implying that Ineos Sports could spend in the region of £1.5bn if it was to acquire a quarter of United’s shares – based on earlier reports that they were seeking a minimum valuation of £6bn.
If such a deal was to be implemented, however, the Glazers would almost certainly remain in control at Old Trafford, having taken control of the club in 2005.
Sir Jim Ratcliffe could seek a 25% stake in the club as part of his latest proposal
That would anger United supporters who have been vocal in their opposition to the family’s continued ownership, and would in turn raise a series of further questions about the club’s future.
On the pitch, the men’s team has had an indifferent start to the 2023-24 campaign, being beaten at home by Crystal Palace in the Premier League last weekend, and losing their first Champions League fixture of the season.
One uncertainty on Monday evening related to the extent to which the Glazers and their advisers at Raine Group were engaged with Sir Jim on his minority stake proposal.
The family, who paid just under £800m in 2005, has remained inscrutable throughout the process and has said nothing of substance to the NYSE since the process of engaging with prospective buyers kicked off last November.
Another would be whether an offer to bring Sir Jim in as a major shareholder would raise any new capital to invest in the club, which is working towards a major renovation of Old Trafford.
The structure of an offer to acquire a minority stake is also unclear, with one analyst suggesting it could be undertaken through a process known as a tender offer.
Bloomberg News reported last week that Ineos was looking to restructure its bid without specifying details of how this would be achieved.
Some holders of the publicly traded stock – called A shares – have raised concerns about Sir Jim’s previous proposals, which focused on acquiring a majority stake in the club by buying shares from the six Glazer siblings who own the class of B shares which carry disproportionate voting rights.
Another uncertainty would centre on whether a minority deal, if agreed and implemented, would give Ineos Sports an eventual path to full control of Manchester United.
Sky News revealed in May that its offer at the time included put-and-call arrangements that would become exercisable three years after a takeover to enable Sir Jim to acquire the remainder of the club’s shares.
The Monaco-based billionaire, who owns the Ligue 1 side Nice, had been focused on gaining control of Manchester United, meaning that switching his offer to a minority deal would represent a significant shift.
He is still understood to want to buy a majority stake but has pitched a restructured deal in an attempt to unblock the ongoing impasse over United’s future.
An Ineos spokesperson declined to comment on Monday, citing the terms of the non-disclosure agreement the bidders had signed as part of the process.
For months, Ineos has been pitched in a two-way battle for control of Manchester United against Sheikh Jassim bin Hamad al-Thani, a Qatari businessman who chairs the Gulf state’s Qatar Islamic Bank.
Sheikh Jassim’s bid is reported to remain on the table, and the convoluted nature of the strategic review initiated by the Glazers late last year means that a revised proposal from the Middle East cannot entirely be ruled out.
The club’s executive co-chairmen, Avram and Joel Glazer, have been reported during the course of the process to be more reluctant to sell than their siblings.
In addition to the competing bids from Sir Jim and Sheikh Jassim, the Glazers received several credible offers for minority stakes or financing to fund investment in the club.
Avram Glazer is the club’s co-executive chairman
These include an offer from the giant American financial investor Carlyle; Elliott Management, the American hedge fund which until recently owned AC Milan; Ares Management Corporation, a US-based alternative investment group; and Sixth Street, which recently bought a 25% stake in the long-term La Liga broadcasting rights to FC Barcelona.
These were designed to provide capital to overhaul United’s ageing physical infrastructure.
Part of the Glazers’ justification for attaching such a huge valuation to the club resides in the possibility of it gaining greater control in future of its lucrative broadcast rights, alongside a belief that arguably the world’s most famous sports brand can be commercially exploited more effectively.
United’s New York-listed shares have gyrated wildly in recent months as reports have suggested that either a deal is close or that the Glazers were about to formally cancel the sale process.
On Monday, they were trading at around $19.43, giving the club a market valuation of $3.25bn.
Earlier this year, Manchester United’s largest fans’ group, the Manchester United Supporters Trust, called for the conclusion of the auction “without further delay”.
The Glazers’ tenure has been dogged by controversy and protests, with the lack of a Premier League title since Sir Alex Ferguson’s retirement as manager in 2013 fuelling fans’ anger at the debt-fuelled nature of their takeover.
Manchester United fans want the Glazer family to sell the club
Fury at its participation in the ill-fated European Super League crystallised supporters’ desire for new owners to replace the Glazers.
Confirming the launch of the strategic review in November, Avram and Joel Glazer said: “The strength of Manchester United rests on the passion and loyalty of our global community of 1.1bn fans and followers.
“We will evaluate all options to ensure that we best serve our fans and that Manchester United maximizes the significant growth opportunities available to the club today and in the future.”
The Glazers listed a minority stake in the company in New York in 2012 but retained overwhelming control through a dual-class share structure which means they hold almost all voting rights.
“Love United, Hate Glazers” has become a familiar refrain during their tenure, with supporters critical of a perceived lack of investment in the club, even as the owners have reaped large dividends as a result of its continued profitability.
A Manchester United spokesman declined to comment on Monday.
Business
Concessions to welfare reforms to be revealed after Labour backbench rebellion forces government retreat
Changes to welfare reforms, forced on the government by rebel Labour MPs, are being revealed today ahead of a crucial vote.
The original bill restricted eligibility for the personal independence payment (PIP) and cut the health-related element of universal credit (UC).
The government, which insisted welfare costs were becoming unsustainable, was forced into a U-turn after 126 Labour backbenchers signed an amendment that would have halted the bill at its first Commons hurdle.
Explainer: What are the welfare concessions?
While the amendment is expected to be withdrawn, after changes that appeased some Labour MPs, others are still unhappy and considering backing a similar amendment to be tabled today.
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Starmer defends welfare U-turn
Here are the main changes to the UC and PIP bill:
• current PIP claimants will keep their benefits; stricter eligibility requirements will only apply to new claims from November 2026
• a review of the PIP assessment, which will have input from disabled people
• existing recipients of the health-related element of UC will have their incomes protected in real terms
Work and Pensions Secretary Liz Kendall said in a statement that the legislation now aims to deliver a “fairer, more compassionate system” ahead of the second reading and vote on Tuesday.
“We must build a welfare system that provides security for those who cannot work and the right support for those who can. Too often, disabled people feel trapped, worried that if they try to work, they could lose the support they depend on.
“That is why we are taking action to remove those barriers, support disabled people to live with dignity and independence, and open routes into employment for those who want to pursue it.
“This is about delivering a fairer, more compassionate system as part of our Plan for Change which supports people to thrive, whatever their circumstances.”
Work and Pensions Secretary Liz Kendall insists welfare reforms will create ‘a fairer, more compassionate system’. Pic: PA
On Saturday, Sir Keir Starmer said fixing the UK’s welfare system was a “moral imperative”. The government claimed cuts to sickness and disability benefits would shave £5bn off the welfare bill and get more people into work.
The Resolution Foundation believes the concessions could cost as much as £3bn, while the Institute for Fiscal Studies warned that the changes make tax rises more likely.
Read more:
Starmer’s most damaging U-turn yet
Liz Kendall defends welfare retreat
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Health Secretary Wes Streeting told Sky News that welfare bill changes have put Labour in a much better position ahead of tomorrow’s vote.
On Sunday Morning with Trevor Phillips, Mr Streeting said: “There were things that we didn’t get right, we’ve put right, and there’ll be a debate about future amendments and things, I’m sure, as it goes through in the usual way.”
Talking to Sky News about the welfare reforms, Health Secretary Wes Streeting said there were things Labour ‘didn’t get right’
On the same programme, shadow work and pensions secretary Helen Whately repeatedly refused to say whether the Conservatives would back the bill, but would review the proposals after the minister’s statement later.
“We have said that if there are more savings that actually bring the welfare bill down, if they’ll get more people into work, and if they commit to using the savings to avoid tax cuts in the autumn, which looks highly unlikely at the moment, then they have our support.”
The Liberal Democrats plan to vote against the bill and have called for the government to speed up access-to-work decisions to help people enter the workforce.
Donald Trump has said the US government has found a buyer for TikTok that he will reveal “in about two weeks”.
The president told Fox News “it’s a group of very wealthy people”, adding: “I think I’ll probably need China approval, I think President Xi will probably do it.”
TikTok was ordered last year to find a new owner for its US operation – or face a ban – after politicians said they feared sensitive data about Americans could be passed to the Chinese government.
The video app’s owner, Bytedance, has repeatedly denied such claims.
It originally had a deadline of 19 January to find a buyer – and many users were shocked when it “went dark” for a number of hours when that date came round, before later being restored.
However, President Trump has now extended the deadline several times.
The last extension was on 19 June, when he signed an executive order pushing it back to 17 September.
Mr Trump’s latest comments suggest multiple people coming together to take control of the app in the US.
Among those rumoured to be potential buyers include YouTube superstar Mr Beast, US search engine startup Perplexity AI, and Kevin O’Leary – an investor from Shark Tank (the US version of Dragons’ Den).
Bytedance said in April that it was still talking to the US government, but there were “differences on many key issues”.
It’s believed the Chinese government will have to approve any agreement.
The president said the identity of the buyer would be disclosed in about two weeks. Pic: Fox News
President Trump’s interview with Fox News also touched on the upcoming end of the pause in US tariffs on imported goods.
On April 9, he granted a 90-day reprieve for countries threatened with a tariff of more than 10% to give them time to negotiate.
Deals have already been struck with some countries, including the UK.
Read more from Sky News:
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The president said he didn’t think he would need to push back the 9 July deadline and that letters would be sent out imminently stating what tariff each country would face.
“We’ll look at the deficit we have – or whatever it is with the country; we’ll look at how the country treats us – are they good, are they not so good. Some countries, we don’t care – we’ll just send a high number out,” he said.
“But we’re going to be sending letters out starting pretty soon. We don’t have to meet, we have all the numbers.”
The president announced the tariffs in April, arguing they were correcting an unfair trade relationship and would return lost prosperity to US industries such as car-making.
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