Sir Jim Ratcliffe has caused some discontent within the Glazer family due to at least two decisions made since he took over the football operations at Manchester United, as reported.
The majority owners of United have the right to remove Sir Jim from the club’s structure later this year as stipulated in his takeover agreement. The INEOS executive has adopted a stringent approach following his £1.25 billion investment for a 28.9 percent stake in February 2024.
Despite being a minority shareholder, Sir Jim has assumed the role of chief decision-maker as he strives to rescue the club from financial and sporting decline. However, it is not surprising that some of his actions have reportedly displeased the Glazers.
According to The Athletic, there has been dissatisfaction regarding Sir Jim’s initiative to hold Executive Committee meetings in locations that are more convenient for him. For instance, his preference for Monaco as a meeting venue is said to complicate attendance for the Glazers.
Additionally, Sir Jim’s candid remarks during his recent public interviews have reportedly not been well-received by his business associates. Notably, his assertion that United could be.
Sir Jim has encountered significant negative publicity during his tenure due to aggressive cost-cutting strategies, which have included approving approximately 450 layoffs within a year.
Much of the criticism directed at the Glazers for their two decades of contentious ownership has been redirected towards the British billionaire. While this situation has financially benefited the American family, they may soon consider an alternative partnership.
Reports indicate that the Glazers could activate their drag-along rights if new interest in a complete takeover arises. Sir Jim has the ability to counter any offers made for the United owners’ Class B shares, which possess greater influence than Class A shares.
However, he would be required to join them in accepting a full sale to another entity if he is unable to match an external offer. There is currently no agreement in place for Sir Jim to eventually acquire the remaining shares of the Glazers, which could leave the 72-year-old exposed if a third party becomes involved.
The drag-along rights are expected to take effect in three months, coinciding with the 18-month milestone of his investment. Should Sir Jim sell his shares as part of such a transaction within the next 18 months, he would recoup his entire investment.
Beyond that timeframe, he would have to accept whatever terms the Glazers are willing to negotiate, but based on their initial strategic review, the asking price is widely considered to be unrealistic.
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