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INEOS billionaire Sir Jim Ratcliffe has yet to clarify whether Manchester United’s existing debt accrued under the Glazers will be wiped out if he succeeds in his efforts to take the reins at Old Trafford.
Ratcliffe confirmed in a statement issued on Saturday that he had submitted his proposal to take control of the club he has supported since childhood.
The 71-year-old businessman said he wants to put “Manchester back at Manchester United” again.
Ratcliffe’s statement also included his desire to lead the Red Devils as a modern club that would be the beacon of English football.
Like Ratcliffe, the Sheikh of Qatar, Jassim bin Hamad Al Thani, also announced his participation in the bidding process to get rid of the Glazers and be the new manager of the club he has supported since he was 10 years old.
Al Thani’s statement contained the promise of significant investment in improving the men’s team, women’s team and youth setup.
The Qatari dignitary also pledged to redevelop Old Trafford and invest in the local area.
One promise that stood out in Al Thani’s statement and was liked by many fans was that his offer would be debt-free and that his organization would eliminate the Red Devils’ existing debt.
Sky Sports reporter Kaveh Solhekol confirmed that Al Thani would pay off the debt if his takeover bid is successful.
Qatar’s offer for Manchester United would clear all the club’s debts. The Glazer family’s £790m leveraged buyout deal in 2005 was financed with borrowed money that was loaded into the previously debt-free club. Net debt remains £515m. The Qataris would pay for it all.
— Kaveh Solhekol (@SkyKaveh) February 19, 2023
According to The Athletic’s Adam Crafton, INEOS will use credit lines provided by Goldman Sachs and JP Morgan to help in its bid for United.
This debt to buy the 20-time English champions will be borne by INEOS and not United as was the case with the Glazer acquisition in 2005.
Ratcliffe’s position on the existing debt remains to be seen, but according to Crafton, it’s safe to assume it will stick around.
Crafton says: “INEOS says it is taking on any debt required to acquire the club, but doesn’t say what will happen to United’s existing debt, leaving the presumption that it can stay on.”
INEOS says it is taking on any debt required to acquire the club, but doesn’t say what will happen to United’s existing debt, leaving the presumption it can stay.
— Adam Crafton (@AdamCrafton_) February 20, 2023
Based purely on finances, this issue could see many United fans leaning towards Qatar’s bid. The debt issue is a contentious one for United supporters who would like to see it put behind them and the club free.
