Manchester United ownership clause explained - Glazer and Sir Jim Ratcliffe agreement

Manchester United ownership clause explained - Glazer and Sir Jim Ratcliffe agreement

Man Utd are technically back on the market after a clause agreed with Sir Jim Ratcliffe became active this month.

Avram Glazer pictured with Sir Jim Ratcliffe.

Could the Glazer family really kick Sir Jim Ratcliffe out of Manchester United? The answer is yes.

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However, it's highly unlikely, so here is an explainer of the headlines you may have seen.

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When Ratcliffe acquired a minority stake at Old Trafford in February 2024, a clause was inserted into the deal which essentially stipulated the Glazers would have the ability to force all shareholders - including Ineos - to sell their shares after 18 months of the investment being signed off.

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The ‘drag-along clause’ means the Glazer family have the right to sell to a third party, and to force Ratcliffe to sell his shares; however, Ratcliffe has the right to match any such offer.

Drag-alongs are commonplace in the business world. They make it easier for a company to be sold, as they prevent the possibility of a minority shareholder blocking a deal that the majority want to take place.

For Ratcliffe to be 'kicked out', the board, which includes Ineos-appointed representatives, would have to vote in favour of a sale. And the Glazers must receive an offer that Ratcliffe was not prepared to match.

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The Glazers could only force Ratcliffe into a sale if the offer was a minimum of $33 per share because that's how much Ratcliffe paid to acquire an initial 27.7 per cent of the club.

Ratcliffe's ownership increased to 28.94 per cent in December after he injected a further £79.3m.

Sir Jim Ratcliffe, Omar Berrada and Avram Glazer after the Europa League final.

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In 2023, Sheikh Jassim and Ratcliffe were in talks with The Raine Group, who oversaw the sale of the club on behalf of the Glazers, and both camps briefed confidence throughout the process.

However, Ratcliffe won the battle and acquired a minority stake. Sheikh Jassim made an offer of around £5.5billion to gain full control of the club, but the Qatari failed to provide proof of funds during talks.

Sheikh Jassim's offer included a promise to clear all of United's debt and included a separate fund directed solely for the club and the surrounding community, but his legitimacy was doubtful throughout the process.

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Regardless of the red flags with Sheikh Jassim, there is no suggestion that he could return to the table. And crucially, there is no suggestion that the Glazers are looking to sell.

The American family get along with Ratcliffe and Avram Glazer has sat alongside the British billionaire at matches.

Earlier this year, Ratcliffe spoke to The Times and said: "To be fair to the Glazers, they're really good on the commercial side. The people who advise me say the fans don't want to hear it. So I've got to be cautious. I get a lot of criticism if I support the Glazers, but the fact is they're really decent people.

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"They're East Coast, you know - that old East Coast America, they're very polite, they're very civilized, they're the nicest people on the planet. There isn't a bad bone in Joel Glazer's body. Part of the problem is there isn't a bad bone in his body.

"We have a very professional partnership with the Glazer family. They're really honest and straightforward, not what you expect when you read about them in the press. And they're both [Avram and Joel - the most involved in the club] passionate about Manchester United.

"I like them as people - to be honest, they could have given us a bloody hard time, couldn't they, after we cocked up with Dan Ashworth and Erik ten Hag? Could have, but didn't."

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Ratcliffe at the unveiling of Carrington's refurbishment.

The Glazers are believed to be pleased with Ratcliffe's investment since gaining control of football operations.

The 72-year-old has put in $300m (£223) of his own money, which has paid for the £50m upgrade to Carrington, and has outlined an ambition to win the Premier League again by 2028.

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“Manchester United are the biggest football club in the world,” said Ratcliffe at the unveiling of Carrington's makeover. “I can testify to that because I travel a lot and everywhere I go, however remote, I always meet Manchester United fans.

“Everyone in the world knows the Manchester United brand, so with those two things the club has to compete at the highest level, that’s appropriate to the brand and the size and the history of the club.

“While a world-class facility won’t take us to that place alone, I think it is one of the key ingredients in the modern world. I think here now we have a world-class training facility.

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“When we first arrived, two years ago, I came to Carrington and we had a nice presentation here. It’s an excellent facility and I’m sure it was in the year 2000 but 25 years later it wasn’t quite what it needed to be for the top four or five teams in Europe.

“It was pretty much the first big decision we made when we arrived, in the first quarter of 2024, to invest in this training facility.

“There were lots of naysayers around, who said you’re not going to do that within 12 months, it’s going to be a mess, but I’m quite pleased to say that it’s come in on budget, on time and we’ve managed to operate all the teams here in reduced facilities but we made it work in that 12-month period.”

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It would not be within the Glazers' interest to show Ratcliffe the door at Old Trafford.

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