Jim Ratcliffe is set to acquire a 25% share in Manchester United and has committed to investing $300 million in the club

British billionaire Jim Ratcliffe finalized a deal on Sunday to acquire a 25% stake in the renowned soccer club Manchester United. Along with the stake purchase, he has committed to investing $300 million in an effort to rejuvenate the club’s performance. This deal also involves Ratcliffe’s INEOS group assuming control of the club’s soccer operations.

The agreement concludes over a year of speculation following the Glazer family’s announcement in November 2022 about exploring strategic alternatives for the club. The Glazers have faced criticism for the decline in Manchester United’s success since the retirement of legendary manager Alex Ferguson in 2013.

Ratcliffe, a lifelong Manchester United fan and local to the area, expressed his satisfaction with the deal. He acknowledged the club’s commercial success but noted the unfulfilled potential in recent years. He plans to leverage the expertise and resources of INEOS Sport to drive improvements at the club and provide funding for the future development of Old Trafford.

The purchase price of $33 per share places the valuation of the club, a 20-time English champion, at $6.3 billion, including debt. Ratcliffe’s investment includes an initial $200 million upon deal closure, followed by an additional $100 million by the end of 2024.

Qatar’s Sheikh Jassim bin Hamad al Thani was also interested in buying the club but decided against raising his $6 billion offer.

INEOS, owned by Ratcliffe, has a diverse portfolio in sports, including ownership of the French Ligue 1 club Nice, Swiss Super League team FC Lausanne-Sport, a collaboration with Racing Club Abidjan in Ivory Coast Ligue One, and the highly successful cycling team Grenadiers.

Manchester United’s executive chairs, Avram Glazer and Joel Glazer, lauded Ratcliffe and INEOS for their commercial experience and financial commitment. They also highlighted that Manchester United would benefit from the high-performance professionals associated with INEOS Sport.

Since Ferguson’s departure, Manchester United has seen a series of managerial changes but has not managed to replicate its earlier success. The club’s net debt has risen to over $600 million, leading to fan protests demanding change. Currently, under Dutch coach Erik ten Hag, the team is eighth in the Premier League, despite significant investment in player transfers over the past six years. The club also faced a recent setback, being eliminated from European competitions after finishing last in their Champions League group.