Manchester United FC is set for a significant transformation as Sir Jim Ratcliffe secures a quarter ownership stake and injects a whopping $300 million into the club. The Premier League Board has given the green light to this move, following a rigorous Owners’ and Directors’ Test (OADT).
Last week, the Board approved the alteration in the club’s ownership structure, and an Independent Oversight Panel has now officially ratified this decision. Moreover, the Premier League’s Owners’ Charter has been inked, marking a pivotal moment for the club's governance.
This milestone marks the inaugural acquisition of Control to undergo review and approval by the new Independent Oversight Panel, a process revamped after Premier League clubs endorsed changes in March 2023.
Now, the Premier League eagerly anticipates confirmation of the transaction’s finalization.
Key Insights into the Independent Oversight Panel:
1. Approval Requirement: Any change of Control necessitates approval from the Premier League Board. Notably, the threshold for "Control" was revised down from 30 to 25 per cent of shares in the Club in 2023.
2. Establishment: In 2023, an independent body was established to scrutinize decisions made by the Premier League Board under Section F (Owners’ and Directors’ Test) of the League’s Rules.
3. Composition: The Independent Oversight Panel, chaired by Murray Rosen KC since 2023 for a three-year term, consists of eight to fifteen members at any given time. Each member is appointed by the chair in a process independent of Clubs and the League.
4. Decision Review Process: Whenever the Board makes a decision under the OADT, the chair selects one or more Reviewers from the Independent Oversight Panel to conduct the OADT Decision Review. Reviewers assess whether the Board’s decision was reasonable based on the available material at the time.
5. Independence: Members of the Independent Oversight Panel remain entirely independent of Clubs and the League. They cannot hold positions as representatives, employees, Officials, Directors, or have Material Influence over any Club.
6. Term Limits: The term of each member is capped at a maximum of five years. Upon expiry, members may be reappointed for an additional term at the discretion of the Chair.
For comprehensive details on the Independent Oversight Panel, interested parties can refer to Appendix 21 of the Premier League’s Handbook.
This development underscores a new chapter for Manchester United FC, demonstrating the meticulous oversight and regulatory framework in place to ensure transparency and accountability within the Premier League.
