British billionaire Jim Ratcliffe has bought a minority stake in the esteemed football club Manchester United (NYSE:MANU). The deal puts the club’s value at an estimated $6.3 billion, including debt. This agreement concludes a year-long sales process.
What Happened: A report from The Wall Street Journal says that Ratcliffe will hold 25% of Manchester United’s non-voting shares, which are listed on the New York Stock Exchange and were last traded near $20.
The billionaire will purchase these shares at $33 each, as announced by the club. Moreover, Ratcliffe will also gain 25% of the nonlisted voting shares owned by the Glazer family, thus becoming the single largest shareholder.
Founder and chairman of the Ineos petrochemical company, Ratcliffe will now oversee the club’s operations and talent recruitment. He will also invest an additional $300 million to refurbish Manchester United’s Old Trafford stadium. However, the commercial side of the business will remain under the Glazer family’s administration.
The agreement, currently subject to approval from the English Premier League, might initially disappoint Manchester United’s public shareholders and devoted fan base until Ratcliffe can prove his minority ...