Why Ed Woodward will receive a large payout from Sir Jim Ratcliffe despite Manchester United’s departure
Once Sir Jim Ratcliffe’s investment is approved, former chief executive Richard Arnold and vice president Ed Woodward of Manchester United will receive a financial windfall.
On Christmas Eve, Ratcliffe finalized a £1.2 billion deal to purchase 25% of United. The British billionaire, who founded the petrochemicals company INEOS, will now be in charge of the Old Trafford football operations after reaching an agreement with the Glazer family, who own the majority of the team.
The Glazers had made them available to a possible minority of majority deal back in November 2022, and the investment deal took a year to close.
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The Premier League has not yet approved the deal, but that is anticipated to be a formality. Once approved, a number of United executives—past and present—as well as Raine Group, the company in charge of spearheading the club’s investment hunt and negotiations—will benefit greatly from the transaction. Raine Group also led the Chelsea sale to Todd Boehly and Clearlake Capital in early 2022.
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After the deal, The Knife Expert Woodward, who departed the club in February 2022, will be $4.5 million (£3.55 million) richer. Details of the investment process and final deal were disclosed in filings made with the Securities and Exchange Commission in the United States.
In the football team, United owns Class A and Class B shares, with Class B shares having more voting rights than Class A shares.
As per Woodward’s prior filed accounts, the company possesses 551,486 Class A shares. Woodward would be in line for a fat payday with that shareholding and at a 25% cut at the $33 per Class A share that Ratcliffe’s deal delivered.
Arnold, who resigned as CEO in November and was succeeded by interim CEO Patrick Stewart, who owns 240,019 Class A shares valued at $1.98 million (£1.56 million) at the current exchange rate, will also profit if he chooses to take advantage of Ratcliffe’s offer.
Cliff Baty, the chief financial officer, and Stewart are also expected to be eligible for a “completion bonus,” which is a one-time payment equivalent to twice their current yearly salaries as long as they continue to work for the team until the Premier League approves the deal and Ratcliffe formally purchases a 25% ownership in the team.
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