Sir Jim Ratcliffe will take control of footballing operations in an attempt to remove the Glazers from the firing line in his proposed 25 per cent Manchester United co-ownership deal, Telegraph Sport understands.
Under terms close to being agreed by key parties, the controversial American owners would remain at the club but take back seats amid efforts to calm the mood among fans.
A clause handing Ratcliffe control of sporting matters also goes some way to explaining why the Ineos owner is willing to pay an estimated £1.35 billion, a significant premium on market valuations, for just a quarter stake.
His proposed deal is now moving rapidly after Sheikh Jassim bin Hamad Al Thani, his only realistic rival, quit talks citing frustration at the Glazers’ valuation. One interested party claims an agreement with Ratcliffe could now be voted by key club figures this week although other insiders said a deal could yet be delayed.
There is little doubt, however, that Ratcliffe is now closer than ever to shaking hands on a proposal which has been revised in the last month. As previously detailed by Telegraph Sport, Ratcliffe also wants clauses attached to any deal which will enable him to eventually stage a full takeover, his long-term aim.
About 69 per cent of United is owned by the American family, the rest spread among multiple stakeholders who own shares listed in New York. With complexities to overcome around the club’s structure, Ratcliffe had repeatedly promised the Glazers he could be more agile than Sheikh Jassim in overcoming potential hurdles.
Sources on both sides of the deal played down suggestions that a deal had already been done with Ratcliffe. One added that final negotiations could yet “change the dynamic”.
However, Ratcliffe has sought assurances that his proposals include “operational control of footballing matters”, a key figure with knowledge of the situation explained.
Ratcliffe, who was at the Nou Camp in 1999 for United’s treble win, will rely on his local background to win over a fanbase sceptical about the Glazers remaining at the club initially.
When he first went public with an approach to buy the club in February, he promised to make United “the number one club in the world once again”. Ambitions for major capital investment on infrastructure were part of those initial plans.
A deal between Ratcliffe and the Glazers took a major step forward after Sheikh Jassim ran out of patience with a 10- month saga. The Qatari banker had tabled a 100 per cent offer, with a fifth bid on June 7 understood to have exceeded £5 billion. Talks since June continued sporadically, but the Qatari, who believed the Glazers wanted closer to £6 billion, has told them privately he is walking away.
One insider with knowledge of the Qatari group’s thinking said the American owners’ price tag was “fanciful and outlandish”. That outburst was met with raised eyebrows by figures close to the club ownership, who maintain criticism does not reflect what has been discussed behind closed doors.
Momentum, however, is now firmly with Ratcliffe to finally seal a deal after United announced a “strategic review” last November.
Discussions between various parties have been fraught at times behind the scenes. One source claims the first offers tabled in early spring by the Qatari were significantly below £5 billion. There was also a suggestion from one key figure that the Jassim offer was not equally beneficial to all shareholders.
Friends of Sheikh Jassim, however, claim his final package on the table was “almost double” United’s current stock market valuation of $3.2 billion (£2.7 billion). Jassim had also increased his promise of investment in infrastructure to $1.7 billion (£1.4 billion) in recent months, they add.
“Sheikh Jassim has tried desperately to meet the Glazers’ outlandish valuation for over nine months, and believes he would have been the dream owner,” one source said. However, other figures with knowledge of the Glazers’ thinking countered those claims by pointing out promised investment from various suitors was never going to be a deciding factor.
Prior to the summer, it seemed US investment firms, including Elliott Management, Carlyle Group Inc., Sixth Street Partners, and Ares Management Corp, were the only groups with interest in a minority stake.
Those close to the Glazers told Telegraph Sport two weeks ago that the family is “looking for the right transaction, not just any transaction”.
In a video filmed to mark Ineos’s 25th anniversary, the British billionaire made clear last month he was not giving up hope. “You can’t really contemplate acquiring a brand like Manchester United and failing because the failure is just far too public and too excruciating,” said Ratcliffe.
Ratcliffe, being interviewed for a promotional video filmed by Ineos, said he had learned from “difficult experiences” after buying French Ligue One club OGC Nice and Swiss Super League team FC Lausanne-Sport.
“The Manchester United bid would have been unthinkable two or three years ago if we hadn’t had some of the experiences, and quite a few of them difficult experiences with Lusanne and Nice,” he added.
Ratcliffe, whose Ineos firm generates $61 billion (£52 million) in revenue, has lined up financing from banks including Goldman Sachs Group Inc, while JPMorgan Chase & Co., Rothschild & Co. and Bank of America Corp. are among other banks advising or offering capital on a deal.
