The proposed takeover of Manchester United football club by Sir Jim Ratcliffe may allow the Glazer family to retain stakes in the club, by gradually transferring ownership through family dynamics. Although the Glazers initiated a strategic review six months ago, the process stalled with just two full takeover bids received. Ratcliffe’s offer, which is not seeking to acquire 100% of United’s shares in one go, offers complicated challenges but looks to acquire enough B shares to hand him control of the club without the necessity of extending the offer to common shareholders. The offer structure means Ratcliffe can separate with less capital upfront, while gaining a majority share, investing in the club, and allowing the brothers to sell their holdings in proportion to their holdings. The penny has started to drop that it is not necessary to make an offer for all shareholders. Uncertainty surrounding the deal has depressed United’s publicly traded share prices since its mid-February peak of $27. No deal is guaranteed, but Ratcliffe’s plan to buy the B shares may offer a viable solution.
United Fans’ Reaction to the Glazers
United fans’ long-standing protests of the Glazers came after racking up debt on the club after acquiring control through a £790m leveraged buyout in 2005. Fans also complain that United’s Old Trafford stadium fell behind its rivals as the Glazers took dividends from the club. Further fan fury stems from the American owners’ role in the failed attempt to establish a breakaway European Super League two years ago. The club board met to receive updates on the ongoing takeover offers and processes. United, Ineos, and Raine declined to comment.
Summary
Sir Jim Ratcliffe considers a phased takeover of Manchester United, and the Glazers may retain stakes; this is complicated by shareholder structure, family dynamics and lack of cohesion among the six brothers. The offer structure allows Ratcliffe to separate with less capital upfront, gain a majority share, invest in the club and acquire sufficient B shares to take control. Uncertainties surround the deal, and United fans’ protests have long haunted the Glazers for racking up debt and falling behind their rivals; protests further escalated after Glazer’s role in the failed attempt to establish a breakaway European Super League two years ago. United’s board met and received updates on the ongoing processes.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
The six Glazer brothers could retain stakes in Manchester United in a proposed phased takeover of the football club by Sir Jim Ratcliffe, who is seeking an avenue through the shareholder structure and family dynamics that have complicated the deal.
The Glazer family initiated a strategic review over six months ago but the process dragged on with just two full takeover bids emerging for one of the biggest names in global sport.
The offer of Ratcliffe and his chemical empire Ineos is complicated because, unlike a rival proposal from a Qatari bidderit is not seeking to acquire 100% of United’s shares in one go, according to people familiar with the discussions.
United is listed on the New York Stock Exchange, but the Glazers control 95 percent of the voting rights through a special class B stock. The publicly traded A shares, which are largely held by minority shareholders, have a minimum voting power.
Ratcliffe, who flew to New York for talks last month, is looking to acquire at least enough B shares to hand him control of the club, in an offer that is not expected to extend to common shareholders.
Some people involved in the trial and those with ties to the club had expected United co-chairmen Joel and Avram Glazer to want a deal that would allow them to keep their dues and extend their stay, with their four siblings – Bryan, Darcie , Edward and Kevin – coming out in full.
Several people said the trial, announced in November, was complicated by the lack of cohesion among the six brothers. The Glazers have also received several offers from investment groups to provide funds to inject into the club without a change of control.
However, two people familiar with the matter said the Glazers were now focused on a structure that would allow the six brothers to sell their holdings in proportion to their holdings, allowing Ratcliffe to take control.
Ratcliffe and Ineos would buy the rest of the Glazers’ stock over the next few years via derivative contracts.
Ratcliffe’s offer structure means he can separate with less capital upfront, gain majority control and invest in the club.
“The penny started dropping,” one of the people said. “It is not necessary to make an offer for all shareholders.”
Uncertainty surrounding a deal has depressed United’s publicly traded shares since its mid-February peak of $27. At its current share price of $18.63, United’s net worth is valued at approximately $3 billion.
One problem with Ratcliffe’s plan to buy the B shares is that United’s stock exchange filings state that the Class B shares are “automatically and immediately” converted into Class A shares upon transfer from the Glazers “to a person or entity that is not an affiliate of the owner”.
One possible solution was for the Glazers to vote on changes that would allow B shares to pass to Ratcliffe without turning into A shares, two people familiar with the process said.
The Ineos group has remained flexible on the structuring to increase its chances of winning the Glazers, in an offer that should value United at more than £5bn ($6.25 billion), including debt. No deal is guaranteed and the structure could change, people have warned.
Despite growing frustrations among supporters over clarity over club ownership, no deal is expected anytime soon. United’s performances on the pitch have improved, with their last game of the season taking place at Wembley on Saturday in the FA Cup Final against crosstown rivals Manchester City.
The club have already won the League Cup and finished third in the Premier League, meaning they have qualified for the lucrative UEFA Champions League next season.
United fans have long protested the Glazers for racking up debt on the club after acquiring control through a £790m leveraged buyout in 2005. Fans also complain that United’s Old Trafford stadium he fell behind his rivals as the Glazers took dividends from the club.
The American owners’ role in the failed attempt to establish a breakaway European Super League two years ago has led to further fan fury.
United’s board met last week and received updates on various offers in a process led by US investment bank Raine.
A person briefed on the meeting said that Ratcliffe’s offer appeared to be the more serious of the two offers at this stage, but that it still contained a number of issues that needed to be resolved.
Ineos, United and Raine declined to comment.
https://www.ft.com/content/81d56a02-ec1e-44b8-a7f6-8ba570398643
—————————————————-