Ineos has final say on Ten Hag’s future and January moves

Under the terms of the arrangement, Sir Jim Ratcliffe has to be consulted on the Dutchman’s long-term future at the club

The full details of Sir Jim Ratcliffe’s deal with the Glazers were revealed on Tuesday night as it emerged Manchester United could not sack Erik ten Hag or make a significant signing without consulting Ineos while the agreement awaits approval. 
Ratcliffe and his Ineos team face a four to six week wait for their £1.03 billion purchase of a 25 per cent stake in United to be ratified by the Premier League. But under the terms of the arrangement with the Glazers, who have agreed to hand over complete control of football operations to Ratcliffe, no decision could be taken on Ten Hag’s future or the purchase or sale of a player without Ineos being consulted. 
As part of the deal that will see the Glazers’ shareholding reduce to 49 per cent and Ratcliffe take a 29 per cent stake, it emerged that: 
United’s extraordinary fightback from two goals down to beat Aston Villa 3-2 at Old Trafford on Tuesday night provided a huge boost to their top-four hopes and eased some of the pressure on Ten Hag. Ratcliffe is not expected to make any snap decisions at United, even though Ineos are keen to appoint a new director of football, but Ten Hag’s long-term future is under scrutiny after a torrid season to date. 
Ten Hag is known to retain the support of the current hierarchy but any decision around the future of the manager, football director John Murtough or ins and outs in the January transfer window would first need running past Ineos. That would suggest, for example, that Ratcliffe would expect to be consulted on any potential departure of Jadon Sancho, who has been exiled since early September in the wake of a falling out with Ten Hag. 
A 241-page filing to the US securities and exchange commission that was released within minutes of the Villa game finishing revealed that United could not “appoint, dismiss or accept the resignation of any director of football or first team manager” or buy or sell players without discussion with Ratcliffe and his team. 
Sir Dave Brailsford, the Ineos director of sport who will join the football club board at United provided the deal is approved, was in the directors’ box at Old Trafford on Tuesday night. Ten Hag said he had yet to hold talks with Brailsford, who has been charged with conducting a root and branch review of football operations, but welcomed the former British cycling chief’s impending arrival. “He wants to work with us, I want to work with him,” Ten Hag said. 
More than £150 million has been paid out in dividends since the Glazers took ownership of United and news that there will be none paid for at least three years is likely to be warmly welcomed by fans. The Glazers have instead agreed with Ratcliffe to prioritise the reinvestment of such money into infrastructure and the team. Ratcliffe is providing an additional £237 million to invest in Old Trafford although is understood to recognise that considerably more investment will be required in the future to finance redevelopment and expansion of the ground or an entirely new stadium. 
Although Ratcliffe will have first refusal for a period of 12 months should the Glazers opt to sell more B shares – which have 10 times the voting rights of Class A shares – the Americans could compel the Ineos chairman to agree to an outright sell down the line. “Drag-along” rights included in the deal mean Ratcliffe would be obliged to sell his shares subject to him receiving a $33 (£26) per share cash offer from the Glazers should they decide on a full sale 18 months from now.
 A drag-along right is a provision or clause in an agreement that enables a majority shareholder to force a minority shareholder to join in the sale of the company. The majority owner doing the “dragging” must give the minority shareholder the same price, terms, and conditions as any other seller. 
The SEC filing said: “For so long as the Glazer Parties are the majority holder, following the date that is eighteen months after the closing date and in connection with any full sale … the company board may require the Trawlers Party [Ratcliffe’s investment vehicle] to sell all of their company ordinary shares and take such other actions as are reasonably necessary to effect the full sale.”
The document also confirms, as reported by Telegraph Sport on Sunday, that Brailsford and Ineos Sport CEO Jean-Claude Blanc will join the football club board at United and John Reece, Ineos’ chief financial officer, and Ineos Sport chairman Rob Nevin, will join United’s plc board