- Sir Jim Ratcliffe’s £1.3B bid for 25% stake in Manchester United nears approval.
- Glazer family and executives like Ed Woodward to benefit.
- Senior executives Patrick Stewart and Cliff Baty set to receive seven-figure bonuses.
- Ed Woodward, former CEO, expected to secure a significant payday with $33 per share offer.
- SEC filing confirms completion bonuses for Stewart and Baty, emphasizing the financial impact of the deal.
Sir Jim Ratcliffe’s £1.3 billion bid for Manchester United is nearing approval :
Sir Jim Ratcliffe, the founder of Ineos, is on the verge of buying a 25% share in Manchester United for a whopping £1.3 billion. The purchase is awaiting Premier League permission, with Ratcliffe optimistic that it will be completed by early to mid-February.
The Glazer family and executives will benefit, including former CEO Ed Woodward.
While the Glazer family, Manchester United’s dominant owners, are expected to benefit the most from this historic transaction, sources suggest that other prominent people in the club’s hierarchy are also due to get significant sums.
Seven-figure bonuses for senior executives:
According to The Times, two senior executives, Patrick Stewart (interim CEO) and Cliff Baty (CFO), are expected to get seven-figure bonuses as part of the selling agreement. These incentives are equal to twice their annual salary.
Ed Woodward’s Million Dollar Payday
Former CEO Ed Woodward, who resigned under widespread criticism, shares in the financial gains. With Sir Jim Ratcliffe offering $33 per share, or approximately £25, which is 63% higher than the New York Stock Exchange pricing, Woodward is poised to receive a substantial payout. According to the most recent documents, Woodward continues to own more than 550,000 shares.
If Woodward chose to sell 25% of his shares, the proceeds would be almost $4.55 million (£3.6 million), leaving him with a sizable 75% of his original investment. The potential gain for Woodward adds to the financial complexity of this high-profile transaction.
The SEC filing confirms the bonuses and completion details.
The SEC filing, which was released last week, revealed the terms of Patrick Stewart and Cliff Baty’s incentives. As to the agreement, “During December 2023, they made amendments to the current employment agreements with Patrick Stewart, serving as our interim chief executive officer and general counsel, or Cliff Baty.”
My chief accounting officer, among additional steps, was included in the changes to ensure a completion bonus at the end of the transaction.
Each completion bonus is set at two times the corresponding executive officer’s annual salary as of the closing date, emphasising the significant financial incentives associated with the successful completion of this unprecedented transaction.
Finally, as Manchester United’s ownership changes, key figures such as Ed Woodward and top executives stand to benefit financially, changing the renowned football club’s financial environment.