24 October 2023 , 17:47
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The creditors at INEOS Group have been reassured that Sir Jim Ratcliffe’s investment into Manchester United will be taken from his personal wealth and not the company.
Ratcliffe has been left as the only individual left in the running to invest in the Premier League giants after Sheikh Jassim withdrew from the race to take over United. INEOS founder and chief executive Ratcliffe becomes a minority investor in the club – as soon as his £1.4billion deal to purchase 25 per cent of United is complete.
This is a somewhat convoluted deal in that Ratcliffe would become the largest individual stakeholder at Old Trafford, where he would take the lead on sporting matters at the club. However, he would still hold just a quarter of the club – although there is a longer-term view to buying more shares.
There was also a degree of uncertainty on the question of how Ratcliffe, Britain’s richest man, would be funding his investment. A report in Bloomberg has now detailed how creditors at INEOS have been told by executives at INEOS Quattro, a petrochemical unit of Ratcliffe’s group, that the company’s funds were not being used as part of the investment into United.
In a call that took place earlier this week, it was confirmed that Quattro’s liquidity would not be used as part of personal investments from the ‘private projects’ of the ownership of INEOS – their move to invest in United in exchange for leading their sporting aims.
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The report adds that INEOS shareholders Andy Currie and John Reece will be involved in the investment in United. There is still said to be concern among creditors that the increased outgoings of the ownership group would mean paying more dividends to shareholders.
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Avram and Joel Glazer put Manchester United on the market in November last year (Getty Images)The next step is for United’s board to ratify Ratcliffe’s bid, although it remains unclear as to when this will take place. Once that is approved, the INEOS holder will have the leading say on United’s sporting issues – although the Glazer family will continue to be present at the club despite their reduced influence.
Ratcliffe will have control of the football side at United with his stake, which raises questions over the futures of Football Director John Murtough and Darren Fletcher, the club’s Technical Director. The position of United boss Erik ten Hag is not under threat, despite the side's poor start to the season, but it is behind the scenes where the biggest changes could come with Ratcliffe's arrival.