Each of the six Glazer siblings are set to pocket up to £150m from Sir Jim Ratcliffe’s partial 25% investment into Manchester United.
On Christmas Eve, after months of haggling and negotiations, United confirmed in a statement that the Glazers had struck an agreement with Ractliffe over a partial investment to be made by the British businessman.
It was relayed that Ratcliffe would will inject $300m (£237m) into the club for investment in its infrastructure, taking his immediate outlay to roughly $1.5bn (£1.2bn).
The value of the stake alone purchased by the INEOS billionaire is thought to be worth around £1.2bn.
As part of the arrangement, Ratcliffe is set to be granted full control of United’s sporting operations. At the moment, the 71-year-old is waiting for the Premier League to ratify his deal before he can officially start work at Old Trafford.
However, he has not shied away from making moves in the background.
Ratcliffe physically attended United’s last home game against Tottenham Hotspur. He watched from the stands as the Red Devils drew 2-2.
A report covered by The Peoples Person suggested that the petrochemicals mogul was instrumental in the appointment of Omar Berrada from Manchester City, to become United’s next CEO.
The Times have now provided more information about Ratcliffe’s deal with the Glazers, including how the money he paid was split.
“The six members of the Glazer family each stand to make between £100 million and £150 million from the sale of a 25 per cent stake in Manchester United to Sir Jim Ratcliffe, which is to be voted on next week.”
“It is the latest financial windfall from the club for the Glazer family, who have already shared an estimated £465 million in share sales, £166 million in dividends, £55 million in directors’ remuneration and £23 million in management fees since their takeover in 2005.”
“The six siblings — Joel, Avi, Kevin, Bryan, Darcie and Edward — all sit on the board of Red Football Joint Venture, the club’s parent company, along with the New York-based lawyer Mitchell Nusbaum.”
According to Martyn Ziegler, even after Ratcliffe’s stake purchase that will essentially stand at 28% of United once extra equity is released to him by a $30 0 million (about £237 million) investment into the stadium and training-ground infrastructure, the Glazer family will still own about 50% of the 20-time English champions.
The newspaper adds, “Joel Glazer, who owns the biggest single shareholding among the family, will earn $195 million and the rest of the siblings will also earn sums of between $177 million and $124 million.”
“There will also be windfalls for some United executives, past and present. Richard Arnold, who stepped down as chief executive in November, will be in line for $2 million from selling a quarter of his 240,000 shares, with $243,000 for the interim chief executive, Patrick Stewart, and $446,000 for the chief financial officer, Cliff Baty. Stewart and Baty will also be paid seven-figure bonuses equivalent to double their annual salary.”
It’s understood that all the Glazers’ shares are held via “irrevocable trusts” – this means that they can avoid paying inheritance tax on earnings by passing them on to beneficiaries within their family.