Approval from Premier League and FA: Sir Jim Ratcliffe's Investment Marks Significant Step in Manchester United Takeover Saga

Manchester United's takeover saga has taken another positive step with approval from the Premier League and Football Association for Sir Jim Ratcliffe's minority investment in the club.

Approval from Premier League and FA

It was announced on Tuesday that Sir Jim Ratcliffe, the British billionaire, has passed the Premier League's directors and owners' test, and the Football Association has also given their seal of approval for the deal to go ahead. This approval marks a significant milestone in the takeover process.

Completion of 25% Purchase

Ratcliffe is close to completing his 25% purchase of Manchester United, with the official completion expected by the end of February. This purchase will make him the minority owner of the club.

Positive News for Fans

Manchester United fans have been eagerly awaiting positive news on the takeover, as the Glazers first started exploring a sale of the club in November 2022. Ratcliffe's offer, initially set to expire on Tuesday, has been extended until the end of the week, allowing more time for the Premier League and FA to complete their tests.

Last Remaining Steps

While the approval from the FA is one of the last remaining steps, the deal cannot be completed until the tender offer for Class A shares is finalized. The period for holders of Class A shares to tender them for sale has been extended until February 16.

Impact on Share Prices

The news of Ratcliffe's investment has had an immediate impact on Manchester United's Class A shares on the New York Stock Exchange. After dropping on Monday amid speculation, the shares rose by more than six percent overnight on Tuesday.

Glazer Family's Majority Control

Ratcliffe's 25% purchase means that the Glazer family will still retain majority control of the Premier League giants. However, the terms of the deal give Ratcliffe first refusal and the opportunity to buy further shares for a period of 12 months if the Glazers decide to sell more.

Investment in Infrastructure

Ratcliffe has pledged to invest £236.6 million ($300 million) into Manchester United's infrastructure, including improvements to their stadium. There have been reports of possible plans to leave Old Trafford, but no official confirmation has been made.

Overhaul of Playing Squad

Ratcliffe is reportedly planning to lead an overhaul of Manchester United's playing squad as he aims to bring back the glory days to the club. He has already conducted meetings with club staff, leaders of the independent Manchester United Supporters' Trust, local leaders, and attended the Munich Air Disaster memorial.

In conclusion, the approval from the Premier League and FA for Sir Jim Ratcliffe's investment in Manchester United marks a significant step forward in the club's takeover saga. With Ratcliffe's 25% purchase and his commitment to investing in the club's infrastructure and playing squad, fans can look forward to a potentially brighter future for the Red Devils.