American billionaire Leon Cooperman has “taken a late stake in Manchester United” as he “reported a position of just under 1 million shares currently valued” at $16.8M, according to Giles Turner of BLOOMBERG NEWS. Last month, a Qatari group led by Sheikh Jassim bin Hamad Al Thani “withdrew its offer” to buy ManU, “paving the way for British billionaire Jim Ratcliffe to eventually gain control of the storied football club.” Funds have been “betting on the outcome of the Manchester United sale process,” which was “officially kicked off” by the Glazer family a year ago. Filings from earlier this year “revealed a number of hedge funds,” including Psquared Asset Management AG and Antara Capital, “took stakes in the club.” It was reported in September that Ratcliffe was “restructuring an offer” for ManU to “address concerns from minority holders -- which include the likes of Lindsell Train, Ariel Investments LLC and Eminence Capital -- about being excluded from any deal” (BLOOMBERG NEWS, 11/14).
NEW MAN IN THE OFFICE: In Manchester, Kyle Newbould reported Ratcliffe is “expected to become a minority shareholder, with confirmation due to come as early as next week” -- investing around $1.7B “in return for a 25 per cent stake.” Ratcliffe will also “take charge of footballing operations at the club” as he will “likely bring in a number of his own men shortly after confirmation.” There is “continued frustration among United supporters not only at the length of time for investment to come through,” but at the “lack of communication from the Glazer family.” The current owners have “provided no update since announcing plans to 'explore strategic alternatives' for investment last November.” While Ratcliffe's initial investment is “for a minority share,” he is “thought to be planning an eventual buyout of the American family in the future” (MANCHESTER EVENING NEWS, 11/14).
MOVING ON: The team officially "announced the departure" of CEO Richard Arnold as Ratcliffe prepares to take a stake in the club. Arnold’s departure, which was confirmed by United to the New York Stock Exchange on which the club is listed today, is "anticipated to be the first of a number of changes" once Ratcliffe’s deal for a quarter shareholding has been formally completed, "most likely next week." Jean-Claude Blanc, the former Juventus and Paris Saint-Germain CEO who is CEO of Ineos Sport, is "expected to be in the running for the position" (London TELEGRAPH, 11/15).
HOUSEKEEPING: THE ATHLETIC’s Adam Crafton reports ManU General Counsel & Board Director Patrick Stewart will take the role of interim CEO when Arnold departs the club. Stewart is United’s “most senior lawyer,” responsible for “managing the club’s legal and regulatory affairs and serves as an arbitrator at the Court of Arbitration for Sport” (THE ATHLETIC, 11/15). THE ATHLETIC’s Sheldon & Crafton note “uncertainty continues to loom large at Old Trafford, with senior figures unsure” what Ratcliffe’s proposed minority investment will “mean for their careers.” Ratcliffe is “likely to want to appoint people he knows in key roles.” But “until further clarity is provided,” Stewart is going to be “responsible for managing the club and will play a key role in the transition phase when INEOS’ deal is ratified” (THE ATHLETIC, 11/15).
FANFARE: THE ATHLETIC’s Daniel Taylor writes the “70,000 or so who flock to Old Trafford for every game have remained largely supportive during the years” when their club, under the ownership of the Glazer family, has “strayed dangerously close to tragicomedy.” The club’s supporters “will desperately want to believe” Ratcliffe’s minority stake “represents a change of direction -- or, at the very least, the start of something new.” Taylor writes all the indications are that Ratcliffe “wants to upgrade several departments of the club.” The Glazers “remain in overall charge” and they “still own the club.” So it “remains to be seen exactly how much influence they are going to allow.” The protests are “continuing because the relevant supporters have made it absolutely clear that, as long as the Glazer name is above the door, they still consider their football club to be in a state of distress” (THE ATHLETIC, 11/15).
