Manchester United sister club to be sold due to huge cut in TV rights
June 7th 2024, 23:18
As reported by The Independent, INEOS, the minority owner of Manchester United, is considering selling its sister club, OGC Nice. This move comes as both clubs face regulatory challenges from UEFA regarding dual ownership and competition eligibility in European tournaments.
Earlier this year, INEOS acquired a 27.7% stake in Manchester United, signaling their ambition to bring significant changes to the club. Jim Ratcliffe, the chairman of INEOS, is determined to restore Manchester United to its former glory as the preeminent force in English football. However, this vision requires substantial effort and investment to rejuvenate the team and their infrastructure at Old Trafford.
In the short term, UEFA is expected to grant both Manchester United and Nice a one-season transition period, allowing them to compete in the Europa League. This temporary measure will likely involve placing Nice in a âblind trust,â a strategy previously employed to navigate ownership conflicts, such as RedBird Capitalâs simultaneous interests in AC Milan and Toulouse last season. However, UEFA has made it clear that this workaround will only be permissible for the 2024/25 season, with stricter regulations anticipated for 2025/26.
British INEOS Group chairman Jim Ratcliffe looks on ahead of the UEFA Europa Conference League second-leg quarter final football match between Nice (OGCN) and FC Basel at the Allianz Riviera in Nice, on April 20, 2023. (Photo by Valery HACHE / AFP) (Photo by VALERY HACHE/AFP via Getty Images)INEOS looking to sell Manchester United sister club OGC NiceThis regulatory pressure is one of the driving factors behind INEOSâs openness to selling Nice. Complicating matters further is the precarious state of Ligue 1âs domestic television rights market. Currently, no broadcaster has secured the rights, leading to a significant drop in revenue forecasts from potential âŹ1 billion deals to around âŹ500 million.
The unresolved broadcasting agreement poses additional financial uncertainties for Nice and other French clubs.
