Manchester United Football Club will on Sunday confirm the sale of a 25% stake to the billionaire petrochemicals tycoon Sir Jim Ratcliffe.
Sky News has learnt that an announcement will be made later which will bring an end to 13 months of talks about a potential takeover of the Old Trafford club.
Sources said that United and Sir Jim’s Ineos Sport would confirm that he is acquiring the interest for $33-a-share (£26), confirming a report last month by Sky News.
The deal, which will come amid a torrid season for the Red Devils on the pitch, will see Sir Jim take control of the club’s footballing affairs once it is approved by the Premier League – a process expected to take between six and eight weeks.
He will inject $300m (£237m) into the club for investment in its infrastructure, taking his immediate outlay to roughly $1.5bn (£1.2bn).
Sir Jim will nominate two representatives to join the United board.
The deal, which Sky News revealed details of last month, will be structured as a tender offer to acquire 25% of the listed A-shares.
The Glazers will also sell 25% of their B-shares, which carry greater voting rights, to Sir Jim as part of the deal.
The additional investment from Sir Jim is likely to be welcome by United fans who believe the club has been starved of investment under the Glazers’ ownership.
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However, United’s home is likely to need far more than £245m to deliver the overhaul that is required to turn it into one of the world’s elite football stadia once more.
The redevelopment will be financed personally by the billionaire and will not add to Manchester United’s existing borrowings.
Sir Jim’s purchase of a 25% stake in the Red Devils will be confirmed more than a year after the Glazer family, which has controlled the club since 2005, began formally exploring a sale.
The Financial Times reported earlier on Sunday that Sir Jim’s investment had been delayed by concerns about protections for minority shareholders.
These concerns have now been overcome, according to insiders.
The deal between the Glazers and Sir Jim comes after months of negotiations with several potential buyers, including the Qatari businessman Sheikh Jassim bin Hamad al-Thani, who wanted to acquire full control of the club. United lost 2-0 at West Ham on Saturday to leave the club facing an uphill struggle to qualify for next season’s Champions’ League.
Several other key questions remain about United’s future ownership, including whether Sir Jim will ultimately seek overall control of the club.
Some United fans have expressed disquiet at the prospect of Sir Jim buying a minority stake given that it paves the way for the Glazers’ continued presence at Old Trafford.
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The family, who paid just under £800m to buy the club in 2005, has remained inscrutable throughout the process and has said nothing of substance to the NYSE since the process of engaging with prospective buyers kicked off.
Earlier iterations of Sir Jim’s offers for the club, which focused on gaining outright control, included put-and-call arrangements that would become exercisable three years after a takeover to enable him to buy out the remainder of the club’s shares.
The Monaco-based billionaire, who owns the Ligue 1 side Nice, pitched a restructured deal in October in an attempt to unblock the ongoing impasse over United’s future.
In addition to the competing bids from Sir Jim and Sheikh Jassim, the Glazers received several credible offers for minority stakes or financing to fund investment in the club.
Part of the Glazers’ justification for attaching such a huge valuation to the club resides in the possibility of it gaining greater control in future of its lucrative broadcast rights, alongside a belief that arguably the world’s most famous sports brand can be commercially exploited more effectively.
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The Glazers’ tenure has been dogged by controversy and protests, with the absence of a Premier League title since Sir Alex Ferguson’s retirement as manager in 2013 fuelling fans’ anger at the debt-fuelled nature of their takeover.
Fury at its proposed participation in the ill-fated European Super League project in 2021 crystallised supporters’ desire for new owners to replace the Glazers.
Confirming the launch of the strategic review last November, Avram and Joel Glazer said: “The strength of Manchester United rests on the passion and loyalty of our global community of 1.1bn fans and followers.
“We will evaluate all options to ensure that we best serve our fans and that Manchester United maximizes the significant growth opportunities available to the club today and in the future.”
The Glazers listed a minority stake in the company in New York in 2012. Ineos and Mancheser United both declined to comment.
