Sir Jim Ratcliffe’s Man Utd deadline revealed - plus worrying possible next step in takeover process

Sir Jim Ratcliffe could be legally forced to sell his Manchester United shares in the next 18 months, it has been revealed in the club’s latest filings to the U.S. Securities and Exchange Commission (SEC).

The detailed document, which was released on Wednesday, explains the process through which Ratcliffe agreed to purchase his minority stake in the club, and fought off competition from other interested parties. It also reveals that 18 months after the Ineos investment is fully ratified by the Premier League and other regulatory bodies, the Glazers will have the power to force Ratcliffe to sell his stake in the club if another buyer emerges.

“For so long as the Glazer parties are the majority holder, following the date that is 18 months after the closing date and in connection with any sale of the entire company, the Company Board may require the Trawlers party [Ratcliffe’s company] to sell all of their company ordinary shares and take such other actions as are reasonably necessary to effect the full sale,” the SEC report outlines.

It adds that the Glazers cannot solicit or encourage new offers from prospective buyers and if a new bidder were to emerge, Ratcliffe would be guaranteed to receive a fee of $33 (£26.03) per share, the price he paid to purchase just over a 25 percent stake of the club.

The SEC filings also revealed that Ratcliffe nearly walked away from the deal, with Christmas Day 2023 set as the deadline for the Glazers to accept his proposal. An emergency board meeting was called on Christmas Eve to give Ineos’ offer the green light, with the announcement made that day.

Ratcliffe’s main rival in the bidding process was Sheikh Jassim bin Hamad al-Thani. The elusive son of the former Emir of Qatar never provided proof of funds, according to the SEC filings. “Raine indicated to Bidder A [Jassim] that it needed to provide details of its intended financing sources in connection with its acquisition proposal.”

Sheikh Jassim ultimately withdrew his bid on 15 October, leaving Ratcliffe’s path clear. The 71-year-old agreed a price of $33 per share for just over a quarter of the Class A and B shares, having originally proposed an offer to buy all of the Glazers’ shares. It was even suggested at one stage that he would purchase 60 percent of the Glazers’ shares and agree a deal to buy the remaining 40 percent over a three-to-five-year period.

Instead, Ratcliffe settled on a deal that sees him own a 27.69% stake in the club, although his original aims to become a majority shareholder could give some insight into his future plans.

The Glazers will earn $715m (£564m) from Ratcliffe’s purchase, while Raine, the bankers who solicited the deal, will be paid just shy of £25m for their services, a fee the club will finance, not the Glazers.

A seven-figure bill for law firm Latham & Watkins LLP has also been accrued, while Patrick Stewart, the interim chief executive officer and general counsel, and Cliff Baty, the chief financial officer, will be paid bonuses of twice their annual salary when the deal officially goes through. Ratcliffe said on Sunday that he expects the investment to be officially ratified by ‘early to mid-February’.