Manchester United Plc (NYSE:MANU) holds the ability to force Jim Ratcliffe to divest his ownership stake in the club within the first 18 months of finalizing the deal, new filings revealed.
The required conditions to trigger this provision were not specified.
Additionally, for three years following the closure of the Ratcliffe deal, any potential sale of the club initiated by the Glazer family, its American owners, must secure a minimum of US$33 per share for Ratcliffe.
The above conditions were revealed after it was confirmed Ratcliffe’s Ineos will be acquiring a 25% stake at $33 per Man Utd share, valuing the 20-time English champions at around US$6.3 billion, including debt.
Ineos will also oversee Man Utd’s club operations under the deal, addressing concerns about the team’s poor performance during the Glazer family’s extended ownership.
Ratcliffe’s company must be consulted about any player transfer while waiting for the deal to be approved by the Premier League.
This also includes any decision which is made about manager Erik ten Hag or footballing director John Murtough.
Man Utd’s stock has experienced around a 52% surge since the Glazers announced plans to sell part of the club.
On Tuesday, Ratcliffe told fans it will require “time and patience” to “bring sporting success” to the underperforming club.
In an open letter, he told fans: “You are ambitious for Manchester United and so are we. There are no guarantees in sport, and change can inevitably take time but we are in it for the long term and together we want to help take Manchester United back to where the club belongs, at the very top of English, European and world football.
“I take that responsibility very seriously.”
United sit sixth in the Premier League, three points behind rivals Man City, albeit having played two extra games.
In recent years, fans and players have expressed displeasure at the team’s performances, lack of renovations to facilities and its frivolous spending in transfer markets.
Man Utd shares remain flat in pre-market trading, having closed at around US$20.50.