As we approach a month since Sir Jim Ratcliff’e’s investment in Man Utd was confirmed, further details about the billionaire’s stake are coming to light
Man Utd paid Raine group a hefty £24.9million to broker the sale of 25 percent of the club to Sir Jim Ratcliffe, it has emerged.
Sir Jim Ratcliffe at Old Trafford for Man Utd v Tottenham
Ratcliffe took his stake following a drawn-out 13-month process, with confirmation of the agreement published on Christmas Eve. The British billionaire expects his £1.3billion investment to be ratified in February, but has already attended a match at Old Trafford and met with club staff… including first-team manager Erik ten Hag.
The Glazer family, who retain the biggest stake in the club, first revealed they were open to a sale in November 2022. There was interest in a full takeover from Qatari banker Sheikh Jassim bin Hamad Al Thani, as well as a number of other potential proposals, but the saga ended with Ratcliffe striking a seal which will see him take control of football operations.
Fans will be pleased to see something approaching a resolution after more than a year, though some opposed to the Glazers will not be delighted to see them remain in place. And now, the full financial outlay has come to light – with the club, rather than its owners, footing the bill.
Citing a filing on the US Securities and Exchange Commission (SEC), The Telegraph reports that United signed an engagement letter promising to pay Raine Group $31.5m (£24.9m) “contingent upon consummation of the proposed transactions”. This is only part of the outlay, though.
Other payments have been agreed, including reimbursements “to indemnify Raine and related persons against various liabilities, including certain liabilities under the federal securities laws”. There is also a seven-figure bill for law firm Latham & Watkins LLP, with reports indicating that 56 lawyers across a number of cities were brought in to work on the deal.
The Glazer family are due to earn £715m from the Jim Ratcliffe deal
The Telegraph also reports that the Glazers, who received $715m from the Ratcliffe deal, will not be footing the bill for any of the above. While that will be paid by the club, its owners will have to pay for personal advice given to them by Rothschild & Co.
The same publication reports that chief financial officer Cliff Baty and interim chief executive Patrick Stewart are due to receive bonuses worth twice their salary if and when the Ratcliffe deal officially goes through. Stewart, the club’s chief legal counsel, was appointed to his interim role after predecessor Richard Arnold confirmed his exit.
That would be equivalent to ‘high six figure’ sums for Baty and Stewart, the Telegraph reports. Both could add to that sum through the sale of shares under the terms of Ratcliffe’s deal.
“Through highs and lows, the constant has been the dedication of our employees and fans. I would like to thank all of them for their loyalty and commitment, and wish everyone associated with the club the very best for the future,” Arnold said when his departure was confirmed. Should Arnold choose to cash in a quarter of his shares, he would stand to earn £1.56m.
Ratcliffe was at Old Trafford for the Premier League match aainst Tottenham
“It’s the first match for me since we got here,” Ratcliffe said after arriving at Old Trafford for Sunday’s draw against Tottenham. “I’m very excited to be here, but I can’t answer any questions really. It’s a big match and we normally do well against Spurs. I have met Erik [ten Hag] but it would be inappropriate [to comment on that meeting] until it’s all formalised.”
“Early to mid February,” was is response when asked when the deal might be ratified, adding: “Hopefully they don’t find anything dodgy on the CV!”
“I have done a few exciting things, but this caps it all,” he added. “There’s no question about that. It’s taken a few years and it’s taken a few turns, as you know, but these things take some doing.”
