(Reuters) – According to a person familiar with the matter, Ineos Chair Jim Ratcliffe is prepared to pay over $1.5 billion for a 25% stake in Manchester United Plc if the Glazer family accepts his bid for the soccer club. The terms of Ratcliffe’s bid indicate an implied valuation of nearly $6.5 billion for Manchester United, not including its net debt of over $600 million, as per the source. This valuation is slightly higher than a rival bid from Qatar’s Sheikh Jassim bin Hamad al Thani, who offered to acquire 100% of the club. Currently, Manchester United is valued at $3.3 billion in the stock market.
Sheikh Jassim has informed the Glazer family that he will not increase his bid any further. Negotiations between the Glazers and Ratcliffe may continue until the end of the month, the source revealed. The Glazer family, known for their success in real estate, retail, and healthcare, as well as their ownership of the NFL’s Tampa Bay Buccaneers, acquired Manchester United for £790 million ($960 million) in 2005. The Glazer descendants collectively control 96% of the club’s voting stock.
Ratcliffe’s proposed deal structure would enable the Glazer family and other shareholders to partially cash out, according to the source. Additionally, if his bid prevails, Ratcliffe has offered to take charge of talent hiring and management at Manchester United, addressing concerns raised by some fans over the Glazers’ handling of this aspect of the club’s operations over the years.
The source, who wished to remain anonymous due to the confidentiality of the matter, stated that there has been no immediate response from Manchester United or Ratcliffe regarding a comment on the situation. Jim Ratcliffe, who founded Ineos in 1998, currently holds a two-thirds stake in the chemical group and serves as its chairman and CEO.
Reporting by Anirban Sen in New York; Editing by Greg Roumeliotis and Sandra Maler