Manchester United shares fall to $20.61 as Glazer family watches Ratcliffe struggle

Manchester United shares closed at $20.61 on the New York Stock Exchange last Friday. The drop places the club's valuation well below the $33 per share price paid by minority owner Sir Jim Ratcliffe in February 2024.

The Glazer family remains the majority shareholder, holding nearly 72% of the club. They own the Tampa Bay Buccaneers in the NFL and retain full control over any potential sale. Under a drag-along clause in their agreement, the Glazers can force Ratcliffe to sell his stake if they choose to exit. Until February 2027, Ratcliffe is entitled to $33 per share in that scenario. That price floor expires in four months.

The club currently sits two points off the bottom of the Premier League table. A 3-0 defeat to Bournemouth on Sunday added to the pressure. The team is likely to appoint a fourth manager in two years by the end of the week.

Joel Glazer, 59, and his brother Avram have not attended a match at Old Trafford since April 2019. They ceded soccer operations to Ratcliffe in exchange for a 1.5 billion pound deal for a 28% shareholding. Sources indicate the Glazers are waiting for a better market moment to sell.

Ratcliffe has slashed transfer and salary budgets and cut nearly 500 jobs at Old Trafford. He has also hired and fired senior executives. One source who watched the Bournemouth match from the directors' box told ESPN that Ratcliffe "couldn't have masterminded a worse situation." The source added, "He's downgraded in all departments. It's basically the opposite of what he said his strategy is."

The Glazers took control in 2005 with a leveraged buyout that saddled the club with 600 million pounds in debt. Since then, the club has paid out nearly 2 billion pounds in interest, dividends, and financial costs. The family has never been popular with supporters, who often blame the absent ownership for the club's current state.

Market uncertainty complicates a sale. Investors are waiting to see the outcome of Manchester City's appeal against 114 guilty verdicts on Premier League charges. If City is ejected, a key rival disappears from the top tier. If City wins, it remains a financial powerhouse. Sources say there is currently no active market for buying a troubled Premier League team.

Two factors could trigger a sale for the Glazers. The first is the construction of a new stadium at Old Trafford, which would raise the club's value. The second is the potential removal of Manchester City from the league. Until then, the Glazers are watching Ratcliffe manage a club that is falling behind rivals in England and Europe.