Home ยป Sir Jim Ratcliffe’s deal for 25% of Manchester United is confirmed but not complete yet: Here’s what’s next

Sir Jim Ratcliffe’s deal for 25% of Manchester United is confirmed but not complete yet: Here’s what’s next

by Vatsal Gupta


Sir Jim Ratcliffe’s deal for 25% stake in Manchester United and fans are breathing a huge sigh of relief.

The lifelong United fan will take control of sporting operations at the club and the fans are already dreaming of a new era.

However, they will have to wait a while because even though this deal is confirmed, it’s not yet complete.

In Manchester United’s official club statement, they say that the closing of this deal is contingent on various steps.

Although all of these are expected to be just standard procedure and formalities, it is still expected to add a few weeks before Sir Jim finally takes control of the club.

The statement said the following:

“The closing of the tender offer will be subject to the receipt of Premier League approval and other necessary regulatory approvals, shareholder approval of an amendment to the Articles of Association and other customary conditions.”

If we break down this statement into multiple parts, here’s what is clear to see.

Firstly, “subject to receipt of Premier League approval and other necessary regulatory approvals” is about the league’s ownership and director test.

It is a necessary qualification for every prospective owner to pass before they can assume charge.

It was under the spotlight when Saudi Arabia’s PIF-backed consortium was taking over Newcastle.

However, it shouldn’t be much of a hassle here, which might not have been the case had Sheikh Jassim won due to that bid blurring the lines between individual and state ownership (Qatar).

Then comes “shareholder approval of an amendment to Articles of Association”.

Since Manchester United PLC is a publicly traded company listed on the stock exchange, all changes in ownership are subject to shareholders’ approval.

“Article of Association” is effectively the company’s constitution which shows the entity’s purpose and the people involved.

Since the ownership changed hands, it will see huge changes to it. Only when all of these steps are complete will Sir Jim Ratcliffe be in a decision-making position.

Thankfully for United fans, these are less time-consuming formalities and the most time-consuming step has been taken already, even if it took 13 months.

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