Manchester United plc and Trawlers Ltd Announce the Successful Completion of Sir Jim Ratcliffe’s Minority Investment

Rhea-AI Summary

Manchester United plc (MANU) confirms Sir Jim Ratcliffe's acquisition of 25% of Class B and Class A shares, investing $200 million for future infrastructure development at Old Trafford. The tender offer at $33.00 per share has been completed, with plans for further investments by 2024.

Insights

Financial Analyst

The acquisition of a significant stake in Manchester United by Sir Jim Ratcliffe represents a notable event in the realm of sports finance. The investment of $200 million for additional shares, with a commitment of a further $100 million, underlines confidence in the club's value proposition and potential for growth. This move could signal a shift in the club's financial strategy, aiming to bolster infrastructure at Old Trafford, which might lead to increased revenue streams in the long term, such as enhanced matchday earnings and commercial partnerships.

Investors should also consider the implications of the proration factor of approximately 26.2% for the tender offer, which reflects the demand for Class A shares relative to the offer size. The transaction could affect the stock's liquidity and market perception, potentially influencing the share price. The dual-class share structure, with Class A and B shares, typically allows for different voting rights, which could impact shareholder influence and corporate governance dynamics.

Sports Business Analyst

From a sports business perspective, Sir Jim Ratcliffe's investment in Manchester United is not just a financial transaction but a strategic move with implications for the club's competitive positioning. The commitment to invest in Old Trafford's infrastructure suggests a focus on long-term asset development rather than short-term financial gains. This could enhance the fan experience, a critical factor in sports business and potentially improve the club's brand value and global appeal.

Furthermore, Sir Jim's involvement might catalyze new sponsorships and partnerships, leveraging his business acumen and network. The sports industry often witnesses a positive correlation between on-field success and financial performance. Therefore, the stated goal of taking Manchester United 'back to the top' could have a substantial impact on the club's financials if it translates into improved team performance and consequent success in domestic and international competitions.

Market Research Analyst

Examining the broader market impact, the acquisition by Sir Jim Ratcliffe might be seen as a vote of confidence in the sports entertainment industry, which has been resilient despite economic uncertainties. The investment could trigger a reevaluation of sports franchises' valuations, especially in football, where market dynamics are influenced by branding, broadcasting rights and competitive success.

For stakeholders, the key will be to monitor how the capital infusion translates into tangible improvements and whether it propels Manchester United to achieve greater financial and sporting outcomes. The investment could set a precedent for future transactions within the industry, potentially elevating market expectations for similar sports entities. Stakeholders should also be attentive to how the club balances the need for immediate performance enhancements with the strategic allocation of funds for infrastructure development.

MANCHESTER, England--(BUSINESS WIRE)-- Manchester United plc (NYSE: MANU), and Trawlers Limited, an entity wholly-owned by Sir Jim Ratcliffe, are pleased to confirm that Sir Jim Ratcliffe has completed his acquisition of 25% of the club’s Class B shares and 25% of the club’s Class A shares, following the satisfaction of all conditions, including approvals from the Football Association and the Premier League.

The tender offer (the “Offer”) by Trawlers Limited for up to 25% of the Class A shares, at a price of $33.00 per share, expired one minute after 11:59 pm Eastern Time on 16 February 2024. Following the expiration, Trawlers Limited accepted for payment 13,237,834 Class A shares validly tendered in the Offer (and not validly withdrawn), representing 25% of the total outstanding Class A shares as of expiration. Computershare Trust Company N.A., the depositary for the Offer, has advised that the proration factor for the Offer is approximately 26.2%.

Following the closing of the Offer and the acquisition of the Class B shares, Sir Jim has invested $200 million into the club for additional Class A and Class B shares via a primary issuance, resulting in ownership of approximately 27.7% of the club’s Class A shares and 27.7% of the club’s Class B shares, with a further $100 million to be invested by 31 December 2024. These funds are intended to enable future investment in infrastructure at Old Trafford.

Sir Jim Ratcliffe said: “To become co-owner of Manchester United is a great honour and comes with great responsibility. This marks the completion of the transaction, but just the beginning of our journey to take Manchester United back to the top of English, European and world football, with world-class facilities for our fans. Work to achieve those objectives will accelerate from today.”

Joel Glazer, Executive Co-Chairman, said: “I would like to welcome Sir Jim as co-owner and look forward to working closely with him and INEOS Sport to deliver a bright future for Manchester United.”

About Manchester United

Manchester United is one of the most popular and successful sports teams in the world, playing one of the most popular spectator sports on Earth. Through our 146-year football heritage we have won 67 trophies, enabling us to develop what we believe is one of the world’s leading sports and entertainment brands with a global community of 1.1 billion fans and followers. Our large, passionate and highly engaged fan base provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, broadcasting and matchday initiatives which in turn, directly fund our ability to continuously reinvest in the club.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements,” including, but not limited to, statements about the beliefs and expectations of Manchester United and Sir Jim Ratcliffe (together with Trawlers Limited, the “Offerors”), the benefits sought to be achieved by the transactions discussed herein, and the potential effects of the completed transactions on both Manchester United and the Offerors. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “will,” “should,” “predict,” “goal,” “strategy,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect,” “seek” and similar expressions and variations thereof. These words are intended to identify forward-looking statements. These forward-looking statements are based on current expectations and projections about future events, but there can be no guarantee that such expectations and projections will prove accurate in the future. All statements other than statements of historical fact are forward-looking statements. Actual results may differ materially from current expectations due to a number of factors. These factors are more fully discussed in the “Risk Factors” section and elsewhere in Manchester United’s Registration Statement on Form F-1, as amended (File No. 333-182535) and Manchester United’s Annual Report on Form 20-F (File No. 001-35627) as supplemented by the risk factors contained in Manchester United’s other filings with the Securities and Exchange Commission. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date they are made. Except as required by law, Manchester United and the Offerors undertake no obligation to publicly release any revisions to the forward-looking statements after the date hereof to conform these statements to actual results or revised expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240220946628/en/

Investor Relations:

Corinna Freedman

Head of Investor Relations

+44 738 491 0828

Corinna.Freedman@manutd.co.uk

Media Relations:

Andrew Ward

Director of Media Relations & Public Affairs

+44 161 676 7770

andrew.ward@manutd.co.uk

Source: Manchester United plc

FAQ

What percentage of Manchester United's Class A shares did Sir Jim Ratcliffe acquire?

Sir Jim Ratcliffe acquired 25% of Manchester United's Class A shares.

How much did Sir Jim Ratcliffe invest in Manchester United for additional shares?

Sir Jim Ratcliffe invested $200 million in Manchester United for additional Class A and Class B shares.

What is the proration factor for the tender offer by Trawlers Limited?

The proration factor for the tender offer is approximately 26.2%.

What is the price per share in the tender offer for Manchester United's Class A shares?

The price per share in the tender offer is $33.00.

What are the future plans for the investment in Manchester United by Sir Jim Ratcliffe?

The funds invested are intended for future infrastructure development at Old Trafford, with an additional $100 million to be invested by 31 December 2024.