Manchester United part-owner Sir Jim Ratcliffe has a long-term ambition of completing a full takeover in the future.
It is now over a year since Sir Jim Ratcliffe completed a £1.2 billion deal to acquire sporting control of Manchester United. This saw Ineos own 28.94% of the club, with their intention to buy further stakes in the coming years made clear.
Since then, financially, United have made some decisions which have left fans more than upset such as the staff cuts and ticket prices being raised.
However, Ratcliffe has explained these as necessary to avoid United going broke.
The future under Ineos looks bright, with United set to build a new 100,000-seater stadium while plans are being developed for the Red Devils’ return to the pinnacle of the sport.
Ratcliffe’s full focus is on United, despite owning two other European sides, and the billionaire has now made his decision over what to do with Nice.
Sir Jim Ratliffe puts Nice up for sale
When Ineos took charge of United, there was some excitement around the potential multi-club model which could be used to the benefit of the club.
However, last summer, UEFA ruled that United were unable to transfer Jean-Clair Todibo between the two sides, which killed any chance of a relationship between the two.
Now, according to French outlet L’Informe, Ratcliffe is looking to sell Nice in order to bring in more cash flow to help with his ownership of United.
The French side has suitors in Saudi Arabia, which could be music to Ratcliffe’s ears as it could mean a strong offer to buy may arrive.
Ratcliffe values Nice at £200m, talkSPORT reports, with the part-owner of United not well-liked by the Ligue 1 side after he admitted he didn’t enjoy watching them earlier this year.
This would be against the multi-club model, although Ineos still look set to use FC Lausanne-Sport, where Enzo Kana-Biyik looks set to head on loan.
But what would this mean for United?
What Nice sale would mean for Manchester United
Selling Nice is not going to give Ratcliffe the funds to buy himself a substantial stake in United, but it does have several benefits.
United in Focus has spoken with TBR’s finance expert, Adam Williams, to gain more insight into what this means for United.
“It’s no surprise to see Ratcliffe considering selling Nice given the financial environment in French football at present.
“Their TV deal with DAZN has collapsed, and it looks as if they are going to have to launch their own streaming service. That’s a huge guaranteed source of revenue wiped out and, unless the streaming service surpasses all expectations, it’s going to be a problem for the next few years.
“In terms of Ratcliffe focusing on United, Nice are in a blind trust at the moment anyway, so it’s not like he is investing many man-hours. That said, it’s probably just a headache he could do without, especially given that it’s a money pit.
“Ratcliffe bought Nice for just short of £90m six years ago. Club valuations have risen generally, but the French market is probably an outlier here, given the economic situation. I’d be surprised if he got more than £100m for them. It’s not an investment I’d make.
“That’s not going to touch the sides as far as buying more equity in United is concerned. It would get you an additional two per cent or so (four per cent if £200m valuation is matched).
“It might help with liquidity, however. Ineos is in the middle of cash flow issues. It’s been a bad 18 months for them. Having £100m in free capital might relieve some of that pressure for Ratcliffe personally and ease things for United too.
“I’d be shocked if there was a sale before the summer transfer window, though, so don’t expect this to have any bearing for United there.
“One other thing to consider is that while most clubs are entering the multi-club market, if this story is true, then United are withdrawing from it. Going against the direction of travel like that is interesting, though some people I speak to think the benefits of the multi-club model are oversold.”
It will be interesting to see what Ratcliffe is planning to do should Nice be sold, and also what the end result will be for United.
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