Manchester United PLC (NYSE:MANU) chief executive Richard Arnold is exiting the Old Trafford club in a move that is being taken as a precursor to confirmation of Sir Jim Ratcliffe’s deal to buy 25% of the company.
Arnold took the top business role at the club last year, succeeding controversial colleague and former banker Ed Woodward. He departs after 16 years at the football club.
INEOS co-owner Ratcliffe is expected to usher in a number of changes at Old Trafford upon closing his US$1.5 billion deal to gain a minority stake with ex-Juventus, Olympics and Paris Saint Germain executive Jean Claude Blanc reportedly set to take up the chief executive position under the new regime.
Manchester United, in today’s stock market statement, told investors that a search process will be carried out for a new permanent CEO.
In the meantime, United’s general counsel Patrick Stewart will assume the role of interim chief executive and Arnold is set to provide "transitional support" up until the end of December.
“It has been an incredible privilege to serve this great football club for the past 16 years. Through highs and lows, the constant has been the dedication of our employees and fans,” Arnold said.
The outgoing chief executive initially received praise and support from United supporters as he represented a fresh outlook and approach following Woodward, who was unpopular with fans following a volatile period in the wake of Sir Alex Ferguson and David Gill, the club's football manager and chief executive who both left in the summer of 2013.
More recently, however, Arnold drew scrutiny as the football operations continued to struggle and, in particular, over the handling of the Mason Greenwood controversy – as Arnold reportedly u-turned on a plan to bring the player back into the club following allegations in his private life.
The speculated appointment of Blanc is among a number of senior appointments anticipated once Ratcliffe joins the club – others on the rumoured hiring list are former British cycling boss Dave Brailsford and former Tottenham and Monaco football director Paul Mitchell.
With Arnold’s departure confirmed, attentions will now been on the anticipated confirmation of Ratcliffe’s deal with majority shareholders, the Glazer family.
It is widely expected that Ratcliffe will be confirmed as the new minority owner of a 25% stake, after a full takeover bid from Qatar was withdrawn in recent weeks.
Overnight, meanwhile, media reports have pointed to meaningful changes in United’s public shareholder register with Wall Street firm Ariel Investments reportedly reducing "by more than half" whilst American hedge fund billionaire Leon Cooperman has bought some US$16.8 million worth of shares in recent days.
In New York, Manchester United shares rose 2.4% to US$19.28 in Wednesday’s premarket trade.