Glazers face huge penalty if they U-turn on Ratcliffe's Man Utd takeover deal

28 December 2023 , 08:49

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Glazers face huge penalty if they U-turn on Ratcliffe's Man Utd takeover deal

The Glazers would have to pay Sir Jim Ratcliffe over £50m if they choose to U-turn on their agreement that will see him take up a minority takeover of Manchester United.

The British billionaire has an agreement to purchase 25 percent of the Premier League outfit, costing him £1.3bn. His share will further increase to 29 percent when his £235m infrastructure investment coverts into more shares and he's ensured he's protected from any change of heart by the Glazers, reports the Independent.

Should the Americans opt out of the agreement whilst it is subject to regulatory approvals, which can take up to eight weeks, they would have to pay Ratcliffe £38m plus an amount not to exceed £14m to cover his expenses within three business days as a termination fee.

Another clause in their agreement puts the Ineos chief at the front of the queue should the Glazers opt to sell up and Ratcliffe has first option to buy more shares over the next 12 months.

Ratcliffe has already begun making an impact as he takes control of football operations, seeking assurances from the Glazers that he would be the one making the major calls. It means every transfer, as well as potential managerial changes, can only be done once the Ineos team have been consulted.

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The 71-year-old will receive two seats on the club's board, which he will delegate to former Juventus CEO Jean-Claude Blanc and cycling legend Sir Dave Brailsford. He will also get two more on the board of the PLC, which will go to Ineos chief financial officer John Reece and Rob Nevin, the chairman of Ineos Sport.

Sir Jim Ratcliffe is set to take charge of Man Utd's football operations (PA)

The Glazers have been in power for the best part of two decades in Manchester with their leveraged buyout plunging the club into debt. Many fans had hoped that the recent process would see them leave for good, but they remain in situ.

Under their premiership, United have continued to fall short with supporters largely starved of success since Sir Alex Ferguson's retirement. The Glazers, who are rarely seen at Old Trafford, have spent huge sums and hired big name managers, but with little return on their investment.

Samuel Meade