More information regarding the billionaire’s involvement in Manchester United is emerging as the month mark approaches for Sir Jim Ratcliffe’s investment to be verified.
It has come to light that Manchester United paid Raine group a substantial £24.9 million to facilitate the sale of a quarter of the team to Sir Jim Ratcliffe.
After a protracted 13-month process, Ratcliffe acquired his stake; on Christmas Eve, the transaction was published. The British millionaire has previously visited with club employees, including first-team manager Erik ten Hag, and attended a game at Old Trafford. He anticipates his £1.3 billion investment being approved in February.
In November 2022, the Glazer family—who own the majority of the team—first declared they would consider selling. The story came to a conclusion when Ratcliffe sealed the deal that will see him take over football operations, although there was interest in a full takeover from Qatari financier Sheikh Jassim bin Hamad Al Thani, among other possible approaches.
After more than a year, fans will be happy to see something resembling a conclusion, but those who are against the Glazers won’t be happy that they’re still in their positions. And now the entire cost has been revealed, with the club paying the tab instead of its owners.
The Telegraph, citing a filing on the US Securities and Exchange Commission (SEC), states that United agreed to pay Raine Group $31.5 million (£24.9 million) “contingent upon consummation of the proposed transactions” in an engagement letter. However, this is only a portion of the cost.
Reimbursements “to indemnify Raine and related persons against various liabilities, including certain liabilities under the federal securities laws” are among the other payments that have been agreed to. A seven-figure cost for the legal firm Latham & Watkins LLP is also present; according to sources, 56 solicitors from various cities were called in to work on the transaction.
According to the same publication, if and when the Ratcliffe deal is finalised, chief financial officer Cliff Baty and temporary chief executive Patrick Stewart will receive incentives equivalent to twice their salaries. Chief legal counsel for the club Stewart was named to his interim position after predecessor Richard Arnold announced his departure.
According to the Telegraph, that would be the equivalent of “high six figure” payments for Stewart and Baty. By selling shares, each might increase that amount in accordance with Ratcliffe’s agreement.
“The devotion of our staff and supporters has remained unwavering through highs and lows. When his departure was made official, Arnold stated, “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 might make £1.56 million if he were to sell 25% of his shares.
“It’s my first game since we came here,” Ratcliffe remarked when he arrived at Old Trafford for the Tottenham draw on Sunday. “Although I’m thrilled to be here, I really can’t respond to any inquiries. This is a major game, and we usually defeat Spurs. Erik [ten Hag] and I have met, but until everything is formalised, it would not be acceptable to speak on that meeting.”
When asked when the agreement might be ratified, he replied, “Early to mid-February,” adding, “Hopefully they don’t find anything dodgy on the CV!”
“This sums it all up, but I’ve done a few exciting things,” he continued. “There is no denying that. As you are aware, it has taken several years and turns, but these things require effort.”
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