Sir Jim Ratcliffe had threatened to withdraw his £1.03 billion offer for Manchester United if the Glazers did not accept it by Christmas Day.
However, it appears that the Glazers could have the ability to force Ratcliffe to sell his 25% stake in the club in just 18 months.
Ratcliffe’s announcement on December 24th took many by surprise, but recent paperwork filed with the New York Stock Exchange has revealed that the Ineos billionaire was prepared to walk away if a deal was not reached.
Despite this, United announced a loss of £25.8 million for the quarter ending on September 30th, although they also posted record revenues of £157 million for the same period.
The negotiations between Ratcliffe’s company Trawlers Limited and the Glazer family have been ongoing since February of the previous year, with progress finally being made in discussions held between December 18th and 22nd.
The Glazer family had indicated their willingness to entertain offers for the club in November 2022, leading to 26 non-disclosure agreements being signed, with 19 parties invited to submit bids.
Sheikh Jassim appeared to be a frontrunner at one point but withdrew from the process in mid-October.
United’s recent financial figures also revealed that the club’s wage bill has increased by 9.7% to £90.3 million following the signing of seven new players in the summer transfer window.
Additionally, the return to the Champions League this season has likely led to an increase in player salaries due to clauses in their contracts.
Manager Erik ten Hag has sanctioned nearly £180 million worth of new signings, including Mason Mount, Rasmus Hojlund, and Andre Onana.
To offset these expenses and comply with the Premier League’s Financial Fair Play guidelines, the club has received around £30 million from the sales of Anthony Elanga, Fred, and Dean Henderson.
However, United’s financial forecast for 2024 has been revised downwards following their disappointing early exit from European football.
As a result of finishing bottom of their Champions League group, the club has missed out on additional midweek matches and prize money, which could cost them between £30 and £45 million.
Leave a Reply