Ratcliffe’s co-ownership of Mercedes unaffected by Manchester United struggles

The British petrochemicals tycoon is also a co-owner of the Mercedes Formula 1 team but has had mixed success with his sporting acquisitions so far

Sir Jim Ratcliffe has received plenty of criticism for his running of Manchester United, but it is unlikely to have an impact on his other major investment in sport including his co-ownership of the Mercedes Formula 1 team.

Ratcliffe’s involvement in Mercedes first started in early 2020 when his company, Ineos, signed a sponsorship deal with the team. That quickly evolved to Ineos acquiring a third of the shares the F1 team from Mercedes’ parent company, Daimler, at the end of 2020. It means that the team is equally owned by Daimler, which reduced its holding from 60% to 33.3%, Ineos with 33.3%, and team principal Toto Wolff whose stake was increased to 33.3%.

The fact he, or indeed his company Ineos, is a three-way owner of the F1 team means the situation is different to the structure at Manchester United, where, despite being a minority shareholder, he is only one of two entities who hold more than 10% of the voting rights - the other party being the Glazer family.

While Ratcliffe, who is estimated by Forbes to be worth around $15.8billion, has a hands-on role at Manchester United, his position at Mercedes is much more removed from the day-to-day decision-making.

Although he is chairman of Ineos, he does not have a place on the Mercedes team board, with Ineos’s Andy Currie and Jonny Ginns holding non-executive positions, along with Markus Schafer and Michael Schiebe from Mercedes, while Wolff and his long-term business partner Rene Berger also complete the board.

The structure at Mercedes allows its management team to make the day-to-day business decisions, meaning Ratcliffe is not directly involved in the running of the team.

Ratcliffe’s presence at F1 races has been minimal since he completed his purchase, mainly as he has his hands tied in Manchester.

Despite owning two of the biggest sports teams in the world, it seems unlikely that his current predicament in football will have any significance on Mercedes’ F1 operation as it gears up for a new season in a bid to fight for both titles.

Ratcliffe has faced criticism for his running of Manchester United. He outraged fans by increasing ticket prices for members to £66 and removing concessions for children and pensioners.

It comes after he bought a 27.7% share in the Premier League club for £1.3billion in December 2023 before taking an extra 1.24% in December.

Since then, he has stopped an ex-player fund, made 250 staff redundant, stripped former manager Sir Alex Ferguson of his ambassadorial role and overseen the failed tenure of ex-boss Erik ten Hag.

The club currently finds itself down in 13th place in the Premier League table in a stadium that has a leaking roof and a mice infestation.

Ratcliffe has found himself thrust into an uncomfortable position but also one that casts the focus on his other sporting investments made through his company.

Ratcliffe’s association with sport has been widespread. Ineos acquired Swiss football team Lausanne in 2017 and has suffered a mix of relegations and promotions. The company also gained a stake in French side Nice in 2019.

In sailing, Ratcliffe partnered with Olympian Sir Ben Ainslie and, while so far they have failed to win the America’s Cup, together they have been the most successful British entrant in the competition in 60 years, thanks largely to Mercedes’ help with the technical input.

Ratcliffe also purchased the hugely successful and dominant Team Sky cycling franchise in May 2019, but in recent years the team has struggled against its rivals. Renamed as the Ineos Grenadiers, it has been accused of underperforming given its substantial budget, and it has also failed to attract cycling’s top talent.

Ineos has involvement in the New Zealand rugby union team and has backed the greatest marathon runner of all time, Eliud Kipchoge, who became the first person to run a marathon in under two-hours in October 2019.

There is no question about his prowess as a businessman, but Ratcliffe’s sporting investments are currently under the microscope. Mercedes returning to form would go some way to help alleviate that pressure.

In this article
Ben Hunt
Formula 1
Mercedes
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