The Glazer family has the potential to compel Sir Jim Ratcliffe to divest his shares in Manchester United if they decide to permanently step away from Old Trafford.
Ratcliffe is in the process of finalizing a £1.3bn agreement to acquire a 25% stake in United, granting him control over the club’s football decisions, while allowing the Glazers to retain a presence at the club. As part of the arrangement, Ratcliffe has the first opportunity to make an offer if the Glazers decide to sell all their shares.
However, the Glazers are not obligated to accept Ratcliffe’s offer and can choose to sell to a higher bidder. In such a scenario, Ratcliffe would be compelled to sell all his shares as well.
After Ratcliffe’s takeover is completed, the Glazers cannot solicit new offers for United for at least 12 months. Furthermore, 18 months from that date, they have the freedom to sell the entire club, triggering the obligation for Ratcliffe’s Trawlers Ltd company to sell as well.
The takeover documents state, “For so long as the Glazer parties are the majority holder…the Company Board may require the Trawlers party to sell all of their company ordinary shares and take such other actions as are reasonably necessary to effect the full sale.”
In the event of a sale within three years of the offer closing, the Trawlers parties must receive a minimum of $33 per share, matching the initial offer price.
While Ratcliffe expresses interest in outright ownership of United, he acknowledges that the current approach is the most likely path to securing a deal. The British billionaire has committed to injecting £300m into the club’s operations following the anticipated completion of the deal around mid-February.
