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Manchester Evening News
Manchester Evening News
Sport
Samuel Luckhurst

Sir Jim Ratcliffe will need more than wealth to end the Glazers' toxic ownership at Manchester United

Sir Jim Ratcliffe resides in Monaco and another Greater Mancunian lives nearby in the Principality: Paul Mitchell.

Manchester United fans have a hang-up with the Monaco director of football Mitchell almost as much as Ratcliffe and a collaboration back home would surely be feasible if Ratcliffe was to take majority ownership of his boyhood club.

By moving from Hampshire to Monaco, Ratcliffe is estimated to have saved £4billion in taxes and his estimated worth in The Sunday Times Rich List is £6.075bn.

Also read: Casemiro agrees personal terms with United

Some believe the Glazer family have to improve the United's cash flow by bringing in an investment partner or selling. Ratcliffe's ventures into sport - cycling, sailing, marathon running and football - suggest he would not settle for a minority investment in United.

Sources believe the biggest issue Ratcliffe could encounter is the six Glazer siblings on the United board - Joel, Avram, Bryan, Edward, Kevin and Darcie - have total voting power. Ratcliffe made his wealth by acquiring businesses and making them more profitable, so he would be unlikely to settle for a minority share.

The Glazers own roughly 69% of United but retain control as they own all of the class B shares - which have more voting power than class A shares.

Bloomberg reported in the wake of Elon Musk's irreverent tweet about United the Glazers were considering selling their minority shares but "the family is not yet ready to cede control of Manchester United".

The Glazers' ego cannot be underestimated. As toxic as the atmosphere around United currently is, the Glazers have weathered storms before.

There is a safe distance - the Atlantic Ocean - between them and disgruntled matchgoers for them to collect their semi-annual dividend. Time will tell if Ratcliffe's powers of persuasion match this week's power play.

Joel, listed as the co-chairman in the United programme, has not attended a game since the Champions League quarter-final first leg against Barcelona in April 2019.

Musk's post and Ratcliffe's confirmed interest have seen United's share price rise by 15% over the last week - more positive news for the Glazers.

United would require a huge injection of capital to redevelop Old Trafford, enhance facilities at their Carrington training complex and sufficiently invest in a ramshackle first-team squad.

Ratcliffe has adequate capital reserves and, as an acquired investment, United would need an injection of £2.5bn and Ratcliffe would not transfer that level of funds unless he has running of the business.

It’s not prudent to dispose or utilise all of his capital reserves in one swoop unless the deal is massively attractive. Ratcliffe's offer to buy Chelsea earlier this year was £2.5bn up front and £1.75bn over a 10-year spell.

If Ratcliffe signed off on a cheque to meet United's estimated financial requirements it would not necessarily equate to just over a quarter of his worth. Funding for a new stadium is normally staggered over a lengthy period (in Tottenham's case, 23 years), so Ratcliffe would not have to dispose of a large chunk of his wealth in one swoop.

Some would argue the United 'brand' has become corrosive. Prospective sponsors walked away from negotiations in the wake of the Super League dalliance and Team Viewer have already confirmed they will not renew their shirt sponsorship. Visit Malta and Maui Jim, two niche partners, did renew their tie-ups.

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