Forgotten Man Utd Contract Clause Could Force Sir Jim Ratcliffe Out in Saudi Takeover

A forgotten clause in the deal that saw Sir Jim Ratcliffe invest in Manchester United could force the founder of INEOS to sell his stake.

Ratcliffe, a boyhood United supporter, forked out £1.3 billion for a 27.7% stake in the Premier League club in 2024, with his INEOS group assuming total control of football operations at Old Trafford.

The 70-year-old has since overseen various changes amid poor performances on the pitch, although some cost-cutting decisions, including redundancies and stopping free meals for club staff, have proven unpopular.

Until recently, there appeared to be little intention of making a sale, with Ractliffe launching a staunch defence of the Glazer family, calling them “the nicest people on the planet”

But a claim from Saudi sports promoter Turki Alalshikh has attracted a significant amount of attention, and questions have since been raised about Ratcliffe and the Glazers as a result.

Sir Jim Ratcliffe owns a 27.7% stake in Manchester United. Image credit: Getty

Taking to social media platform X on Wednesday evening, Alalshikh suggested United are in the "advanced stages of completing a deal to sell to a new investor".

He wrote: "The best news I heard today is that Manchester United is now in an advanced stage of completing a deal to sell to a new investor – I hope he’s better than the previous owners."

Contract clause could force Sir Jim Ratcliffe to sell Man Utd stake

Back in 2023, a report from The Telegraph revealed the existence of a series of clauses related to the takeover deal, including Ratcliffe's 12-month first refusal if the Glazer family ever decided to sell their Class B shares in United.

The second clause, meanwhile, was a more significant one – a drag-along agreement that could force Ratcliffe to sell his shares after 18 months at United.

A drag-along clause is a provision in a shareholders' agreement that allows a majority shareholder to force minority shareholders to sell their shares on the same terms if the majority decides to sell the entire company.

This clause prevents minority shareholders from blocking a sale and ensures a sale can proceed when a buyer wants to acquire 100% of the club. For example, the Glazer family can sell their majority stake, compelling Ratcliffe to sell his minority stake on the same terms.

A report from the Mail claims the drag-along clause became active as of Wednesday, August 13.