Now that Sir Jim Ratcliffe’s stake in Manchester United is finally confirmed it is clear that he is going to be an active investor giving the club a much needed renewed sense of purpose and direction.
All of Ratcliffe’s businesses, including a fleet of tankers
that ferry natural gas across the Atlantic, indicate that he is willing to
commit large sums of capital to produce long-term returns rather than to turn a
quick penny. By Ineos’ standards Manchester United is a small business, but no
one in Ratcliffe’s circle is under any illusion about the time required to
restore the club to its glory days.
The brutal history of the union battles he eventually won
after purchasing the Grangemouth refineries from BP in 2005 show that he is no
stranger to adversity. Given Ratcliffe’s penchant for frugality in his business
pursuits, he must be eyeing United’s transfer record, wage bill and overall
headcount with a quizzical eye.
Everything about
Ratcliffe suggests he will operate with urgency, trim excess, keep his
operating structure as lean as possible and hire leaders to whom, after trust
is established, he will give considerable latitude. The recent hire of the
former chief of football operations of Manchester City offers a clue that
Ratcliffe might try to emulate their crosstown rival’s network of overseas
clubs, which have been used to identify young talent.
For someone
accustomed to committing billions to capital projects, the prospect of a
revitalised (or new) stadium at Old Trafford will be less daunting than to
others. And it’s here that his experience with debt financings that don’t leave
the borrower sweating should come in useful.
While Ratcliffe might
appear impulsive (can you imagine BP or Shell buying United?) nothing suggests
he will do anything for sentimental reasons if the data suggests otherwise.
It’s hard to imagine that any stadium investment, even if part of an urban
revitalisation scheme, will proceed unless the numbers make sense.
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