Manchester United sale insider explains 'put-and-call' clause in Sir Jim Ratcliffe bid that could force Glazers out

An insider connected to the potential sale of Manchester United has explained what the 'put-and-call' clause reportedly contained within Sir Jim Ratcliffe's bid means.

Ratcliffe is one of the leading contenders to complete a takeover of United from the Glazer family, with Qatari businessman Sheikh Jassim - through his Nine Two Foundation - also at the forefront of the race.

The British billionaire has submitted a proposal for majority control of the club, with the Daily Telegraph claiming the bid contains a demand for him to have immediate control of transfers in the period between the bid acceptance and the takeover completion.

The structure of the proposal is different to that of Sheikh Jassim's. The Qatari businessman submitted his fourth bid on Tuesday, believed to be £5.6 billion (via Ben Jacobs). He only wants a full takeover of United.

Sky News, however, report that Ratcliffe's bid contains a 'put-and-call' clause - and an insider close to the process has explained what that means.

Man Utd insider explains Ratcliffe clause

Speaking to The Athletic, the unnamed insider said: "A put option probably means Joel and Avram can force INEOS to buy their shares at a minimum price at some point in the future - for instance, $30 per share, which protects them from losing money from here.

"The call option for INEOS probably means they can buy the Glazer shares at a higher price, $45 per share for example, any time before a certain date, say 2026.

"This is a way for Joel and Avram to protect their downside while having a viable path to get out."

The Glazers currently own all of the Class B shares in United, which are worth 10 times more than the Class A shares. As per The Athletic, only Joel and Darcie Glazer own Class A shares - to a figure of 4.38 per cent of the total amount in circulation.

It is reported that, in the current stock offering, the Glazers' Class B shares would automatically convert to Class A, meaning that Ratcliffe would need to agree with the family that their B shares would not convert in order to take majority control.