How Investor Ratcliffe Takeover Cost Man Utd $31.5m

Sir Jim Ratcliffe ‘s drawn-out purchase process is said to have required Manchester United to pay $31.5 million (£24.9 million).

The Raine Group was brought on board by the Glazers to oversee the bidding process and serve as the club’s financial advisor while the purchase process was underway. They participated actively in the process and helped Ratcliffe obtain a quarter of the club, for a total of £1.3 billion ($1.64 billion). As per The Athletic, the club, rather than the Glazers, paid a large amount of $31.5 million (£24.9 million) for their services and the employment of 56 lawyers.

READ ALSO: Revealed: Glazers Must Pay New Investor Ratcliffe Big Fee If Deal Collapses 

The choice of Raine Group was based on its international recognition as an investment banking firm with significant experience in transactions and familiarity with United’s operations and markets. Apart from the $31.5m, United agreed to cover various expenses for Raine, including fees, disbursements, and indemnifications against certain liabilities under federal securities laws.

However, the personal advice received by the Glazers from Rothschild & Co. will be covered by the Americans, although the specific amount has not been disclosed in the United States Securities and Exchange Commission (SEC) filing. Moreover, Patrick Stewart (interim chief executive) and Cliff Baty (chief financial officer) are slated to receive completion bonuses equal to two times their annual salary once the deal is sealed and ratified by Premier League authorities.

The Premier League is currently reviewing Ratcliffe’s partial takeover, which is not anticipated to be finalised until February. But it’s thought that the INEOS firm has taken over management of sporting affairs at Old Trafford, so the team must speak with them about any possible moves and Erik ten Hag’s future as manager.