Drag-along clause could force sale of Ratcliffe's Manchester United stake

Sir Jim Ratcliffe’s minority stake in Manchester United could be compelled to sell under a drag-along provision that has just entered into effect, potentially handing control of the club to its majority owners if an acceptable full-club bid emerges. The clause, activated 18 months after Ratcliffe’s February 2024 investment, allows the Glazer family to trigger the sale of Ratcliffe’s shares on the same terms as a sale of the entire club. Ratcliffe’s stake, reported in the high 20s percentage-wise, was acquired for roughly one billion dollars in the early phase of his involvement with United.

Since taking a central role in United’s football operations, Ratcliffe has overseen a broad restructuring. Ruben Amorim was appointed as manager, hundreds of staff were made redundant, and the club unveiled plans for a new two-billion-pound stadium. At the same time, Ratcliffe commissioned upgrades to the Carrington training complex, amounting to tens of millions of pounds. He has framed these moves as part of a longer-term project to restore United to the upper echelons of world football, even as results on the pitch have struggled in the short term.

The drag-along clause has highlighted a...