Ratcliffe's Manchester United deal gets Football Association approval, but shares slide

By James Rogers

The billionaire's push for a stake in Manchester United is now close to becoming reality

Manchester United has clinched approval from the Football Association for British billionaire Sir Jim Ratcliffe's acquisition of a 25% minority stake in the iconic English club, although its shares tumbled in premarket trades Thursday.

Shares of operator Manchester United Ltd. (MANU) fell 15.6%, putting the stock on pace to snap a two-day winning streak.

A Manchester United spokesperson confirmed to MarketWatch that the Football Association, the governing body for English soccer, has approved the deal. Earlier this week the Premier League approved Ratcliffe's deal, bringing the billionaire's push for a stake in the club closer to reality.

Related: Manchester United shares climb as Premier League approves Ratcliffe deal

Ratcliffe, the chief executive of the chemical giant Ineos, reached an agreement to buy 25% of the club from the American Glazer family last year.

In a filing this week, the club announced that the deadline for Ratcliffe's tender offer has been extended to one minute after 11:59 p.m. Eastern time on Feb. 16. Previously the deadline was one minute after 11:59 p.m. Eastern time Tuesday. The filing also said that Ratcliffe's liquid assets "were in excess of $4 billion."

Manchester United is the most successful team in the history of the English top division, which it has won 20 times. A record 13 of those titles have come in the Premier League era, which began in 1992. Founded as Newton Heath in 1878, the club became Manchester United in 1902 and won the first of its 20 league titles six years later.

Related: Manchester United's stock rises after Jim Ratcliffe clinches 25% stake and vows to return club to soccer's pinnacle

Led by manager Erik ten Hag, Manchester United last year clinched its first silverware in six years with a 2-0 defeat of Newcastle United in the League Cup final.

The club, which defeated West Ham United 3-0 on Sunday, is currently sixth in the Premier League. Manchester United's next game is against Luton Town on Feb. 18.

Manchester United shares have fallen 19.9% in the last 52 weeks, compared with the S&P 500's gain of 20.6%.

-James Rogers

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02-15-24 0906ET

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