Manchester United fans will be hoping Sir Jim Ratcliffe stake is beginning of the end for the Glazers
The calls grew louder from Manchester United fans: “Full sale now.”
It was more than an aspiration.
The Glazers fed the belief their ownership could be ending when announcing in November last year that “strategic alternatives” were being explored.
Instead, control is only being diminished.
Just 25% of the New York Stock Exchange-listed club is being sold to INEOS founder Sir Jim Ratcliffe, the petrochemicals entrepreneur.
Just another reminder of how little the say of supporters – or at least the most vocal ones – counts at Old Trafford.
Human rights activists – and those against state involvement in clubs – would argue for the better.
Not even a bid of around £5bn for a full buyout from Sheikh Jassim bin Hamad al Thani – with funding linked to the Qatari state – could tempt the Glazers to sell up.
Manchester United fans have long protested against the Glazer family’s ownership. File pic
The American family valued their footballing asset – bought for £790m with a leveraged takeover in 2005 – at £6bn and counting.
The Sheikh Jassim offer seemed a handsome return on the initial investment, especially when servicing the debt the Glazers loaded on to the club has cost United more than £1bn.
It is cash that has gone to banks rather than building work so desperately needed at Old Trafford and the Carrington training complex.
The women’s team – disbanded in 2005 and only re-formed in 2018 – lacks a dedicated stadium or regular access to Old Trafford.
Ageing infrastructure symbolises the decay of the club.
The hope among fans will be that Sir Jim’s promised investment starts the regeneration of facilities that have fallen behind rivals.
Avram Glazer and his family retain majority ownership under the Ratcliffe deal
The Glazers would see growing the commercial operations at United as a great success.
Revenue at the club has trebled during their 18-year ownership.
But that funded transfer fees and salaries in the struggle to keep up with rivals.
And how they spent – so often wastefully on the wrong players – reflects the shortcomings of the Glazers to identify the smartest sporting minds in the game to run football operations.
A new chief executive is being sought with the departure of Richard Arnold.
Sir Jim’s arrival offers the prospect of fresh ideas, sporting expertise and improved public engagement.
He can tap into the mind of Sir Dave Brailsford, the mastermind behind Team GB’s golden Olympic cycling dominance who serves as INEOS director of sport with roles across cycling, football, sailing and rugby.
Sir Dave Brailsford
But Sir Dave’s legacy has been tainted by investigations into the cycling successes with Team Sky, the forerunner to INEOS Grenadiers when owned by the parent company of Sky News.
Sir Dave previously acknowledged “mistakes were made” by Team Sky in relation to anti-doping and testing practices but denied wrongdoing.
And there are questions about how supremacy has been achieved at Manchester City, the football club that now sets the benchmark for glory.
Contrasting the fortunes of City and United are muddied until a Premier League case into vast alleged financial wrongdoing concludes.
With Abu Dhabi wealth, Manchester City now dominate not just locally in men’s football but across England – and Europe.
It is why the prospect of Qatari investment proved so enticing to some United fans, although not those with the anti-sportswashing banners at matches.
Protests have replaced parades.
In the decade since United last won the Premier League as Sir Alex Ferguson retired, City have won the title six times.
And their maiden Champions League success last season was part of a Treble that emulated United’s greatest achievement in 1999 – four years before the Glazers bought their first shares in the club.
They steadily built up control before gaining complete ownership amid fan protests.
The hope for many supporters will be that the Glazers selling off 25% to Sir Jim is the start of their route out of Old Trafford.
And that the strategic review does indeed produce a better strategy.
But rejecting a complete sale could only deepen the discord in the stands at Old Trafford with the Glazers still owning the most shares.
Business
Vivergo: How US-UK trade deal could bring about collapse of huge renewable energy plant in Hull
The smell of yeast still hangs in the air at the Vivergo plant in Hull but the machines have fallen quiet.
More than 100 lorries usually pass through here each day, carrying 3,000 tonnes of wheat. It is milled, fermented and distilled. The final product is bioethanol, a renewable fuel that is then blended into E10 petrol.
This is a vast operation. It took several years to build, with considerable investment, but it is on the verge of closing down. Management and staff are holding out for a last-minute reprieve from the government but time is running out.
It’s been a turbulent journey. The plant was already being annihilated by US rivals, losing about £3m a month. Vivergo and Ensus, based in Teesside, blamed regulations that enable US companies to earn double subsidies.
They were pushing for regulatory change but then a killer blow: The US-UK trade deal, which allows 1.4 billion litres of American ethanol into the UK tariff-free (down from 19%).
“We’ve effectively given the whole of the UK market to the US producers,” said Ben Hackett, managing director at Vivergo.
“If we were to have the same support that the US industry has, if we could use genetically modified crops, we wouldn’t need that tariff. We would be able to compete. If we had the same energy costs. We wouldn’t need those tariffs.”
The government has the weekend to come up with a plan that could keep the business running. If it fails, Vivergo will begin issuing redundancy notices to its 160 staff.
Ben Hackett
It’s a devastating prospect for workers, many of them live in Hull and are nervous about alternative opportunities in the area.
Mike Walsh, a logistics manager who has been working at the plant for 14 years, said: “It’s not a great place to be at the moment. It’s a very well paid, very high-skilled role and they’ve (Vivergo) given everybody an opportunity in an area that doesn’t pay that well…. The jobs market isn’t as good as what people would like. So it does impact the local economy.”
He called on the government to “help us, save us, give this industry a future”.
His colleague Claire Wood, lead productions engineer, said: “I moved here after a career in oil and gas for 10 years, partly because I want to be part of the transition to renewable fuels. I can see so much potential here and it’s absolutely devastating to know that this place might be closed very, very shortly and that all that potential just goes away.”
Thousands more could be affected. Haulage companies may have to lay off truck drivers and farmers could also suffer a blow.
Vivergo makes bioethanol using wheat. That wheat is bought from farms from Yorkshire and Lincolnshire.
Claire Wood
The National Farmers Union has sounded the alarm, saying: “Biofuels are extremely important for the crops sector, and their domestic demand of up to two million tonnes can be very important to balance supply and demand and to produce up to one million tonnes of animal feed as a by-product.”
Another bioproduct is carbon dioxide. The gas can be captured and used to put the fizz in drinks or injected into packaging to preserve food.
If Vivergo and Ensus were to go, Britain would lose as much as 80% of its output of carbon dioxide. Supplies are already tight across Europe, meaning this decision could compound shortages across a range of sectors, from meat-packing to healthcare.
The industry is calling on the government to help. Vivergo says it needs temporary financial support but that the government must create a regulatory and commercial environment in which it can thrive.
It says rules that award double subsidies to companies that use waste product in their bioethanol must be changed. At present, these rules are being used by US companies that make ethanol from Uldr – a by-product of processing corn. They argue this is not a genuine waste product.
Read more money news:
Something for everyone in latest economic data
Claire’s falls into administration
Lola’s Cupcakes bakes £30m takeover by Finsbury Food
Another option is to grow the market. Industry leaders are calling on ministers to increase the mandated renewable fuel content in petrol from 10% to 15% and for an expansion into aviation fuels. That would allow British companies to carve out a space.
The government has been locked in talks with the company since June.
It said: “We will continue to take proactive steps to address the long-standing challenges it faces and remain committed to a way forward that protects supply chains, jobs and livelihoods.”
However, the time for talking is almost over.
Mr Hackett said he had no idea how the government would respond but he was firm with his stance, saying: “In times of global uncertainty, losing that energy certainty and supply from the UK is a problem.
“I think what they’re missing out on is the future growth agenda. We’re the foundation on which the green industrial strategy can be built. We make bioethanol that today decarbonises transport. Tomorrow it will decarbonise marine. It will decarbonise aviation.”
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike