Manchester United are now set to vote on accepting a takeover investment by Sir Jim Ratcliffe, potentially having an impact on Arsenal and the other Premier League sides.
Ratcliffe has pursued owning a Premier League team for several years but is finally set to get his hands dirty. The Guardian reports that Manchester United’s board will vote on accepting a £1.3bn offer for a 25% stake. It will also hand him control of the club’s football operations.
Ratcliffe offered Manchester United’s current owners, the Glazer family, a premium to claim control of the football operations. Any takeover would end 11 months of speculation about a potential sale at Old Trafford. It will also give the Red Devils a new market value of £5.2bn
Ratcliffe assuming control of Manchester United’s football operations would have an impact on Arsenal and their Premier League rivals. The British billionaire already has plans that may revive a sleeping giant yet to win a Premier League title since Alex Ferguson retired in 2013.
According to The Times, Ratcliffe and his Ineos group will look into expanding Old Trafford to a 90,000-capacity ground. He also has eyes on gradually increasing his ownership to 100% in the years to come. The 74,000-seater is in vital need of repairs and urgent modernisation.
How will Ratcliffe’s Manchester United investment impact Arsenal?
His plans to increase Old Trafford’s capacity will see Manchester United further their already sizable revenues. According to Forbes, the Red Devils rank third among English teams with a $779m (£640m) revenue, behind Man City ($815m, £669m) and Liverpool ($793m, £651m).
It was also fourth worldwide behind Real Madrid’s $807m (£662m). Forbes’ values as of May 2023 credited Arsenal with a revenue of $490m (£402m), the 10th worldwide behind ninth-placed Tottenham Hotspur. It listed Spurs with a revenue of $591m (£485m) after last term.
What are Arsenal and Manchester United’s club valuations?
Ratcliffe’s partial takeover of Manchester United will likely also increase Forbes’ valuation of the club following his investment. Even though it already cited the Red Devils’ value at $6bn (£4.9bn), slightly less than Ratcliffe’s valuation. It was the second-most valuable team value.
Forbes only valued Real Madrid above Manchester United at $6.07bn (£4.9bn). Arsenal held a club value of $2.2bn (£1.8bn) in comparison, so 34.6% of what Ratcliffe values Manchester United at. But both sides being competitive in future seasons may boost Arsenal’s valuation.
Stan Kroenke, Arsenal’s owner, will hope Ratcliffe’s investment does not make Manchester United too competitive, though. He has overseen a sometimes fractious tenure at Emirates Stadium. But his recent investments have helped Mikel Arteta build a title-challenging side.
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