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What Ineos deal means for United

Some commentators have seen Manchester United's second half fightback to beat Aston Villa as a sign of a new spirit at the club after off the pitch changes.

Ratcliffe’s company, INEOS, has bought 25 per cent of Manchester United in exchange for sporting control. The deal, which has cost around £1.3billion ($1.6bn), means the club’s football operation will now be overseen by INEOS but the Glazer family, who have owned United since 2005, remain in overall charge. The Glazer family and Class A shareholders will receive the same price of $33 per share.

The $300million cash injection will be used to improve Old Trafford and other infrastructure, and INEOS will have the casting vote on any decision related to football — eg, transfer policy or the future of Ten Hag.

When the United-INEOS deal was announced, it revealed that Ratcliffe had acquired 25 per cent each of the Class A and Class B shares. By offering Class A shareholders just as much opportunity to participate in the offer as the Glazers, INEOS hopes to minimise the risk of legal action from its fellow minority stakeholders.

One criticism of INEOS at Nice (the club they own in France’s Ligue 1) is that Ratcliffe and his staff put too much faith in the figures that were there before them, believing the same structures only needed greater investment to improve results. They are unlikely to repeat the same mistake at Old Trafford.

Sources close to the INEOS bid, speaking on condition of anonymity when relaying private conversations, have told The Athletic that Ratcliffe sees the improvement of infrastructure at Old Trafford and the club’s Carrington training ground as essential. His proposal also included a statement of intent to invest in the women’s team at United.

The Ratcliffe bid has made no formal statement about debt but, behind the scenes, it has provided assurances that no “fresh debt” (ie, any money borrowed to acquire United) will be landed onto the club’s balance sheet and will instead be borne by INEOS.

Ratcliffe, though, does not see the need to “keep tipping more money into the bucket” when it comes to United.

 


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