One of Britain’s richest men, Sir Jim Ratcliffe was long considered a magnate who kept a low profile. It helped that INEOS, a chemicals firm he founded in 1998, produced materials that consumers needed but rarely thought about, such as plastics used in food-packaging. But now Sir Jim has stepped into the limelight by expanding into a business that is not needed, but is constantly thought about: sports. Since buying FC Lausanne-Sport, a Swiss football club, in 2017, Sir Jim and INEOS have built a sprawling sports empire. On Saturday INEOS Britannia, the group’s sailing venture, will become the first British team since 1964 to take part in the final of the America’s Cup, the oldest competition in the sport. Success would be an astonishing coup in the rarefied world of sailing. But it would not quell doubts about INEOS’s sporting strategy.
The biggest source of concern comes from Sir Jim’s investment in Manchester United. In February he spent $1.6bn to purchase a 27.7% stake and control over sporting operations at the football club from the Glazers, an American family. United’s fans rejoiced: the Glazers are unpopular owners and Sir Jim, a supporter himself, was well placed to restore the club’s past glories. So far, such success has proved elusive: United are 14th in the Premier League. A guiding mantra at INEOS, Sir Jim has said, is “don’t do dumb shit”. The phrase features on the “INEOS
compass”, a diagram he devised to guide the firm’s growth from a single chemicals plant in Belgium to a global conglomerate reporting $65bn in annual revenue. Pointing north are words Sir Jim likes: “scepticism”, “safe”, “a beer”. To the south are those he doesn’t: “politics”, “winging it”, “lukewarm cappuccino”. The buzzwords also refer to Sir Jim’s upbringing. “Northerners” is on the positive side of the chart. Now 71, he was born on a council estate in Failsworth, a town now in Greater Manchester. The smokestacks outside his bedroom window sparked his interest in industry. That led to an early career in the oil sector and then private equity, which sharpened his dealmaking skills. He grew INEOS through a series of acquisitions.
Critics argue Sir Jim is now trying to launder his and his company’s reputation through sports. His strong support for fracking provokes environmentalists. Sir Jim has suggested the sporting ventures are simply an enjoyable way to spend his company’s profits. He is a fitness and adventure enthusiast, who in April ran the London marathon in just over four and a half hours. As well as sport, INEOS has moved into carmaking, producing a 4x4 off-road truck, the Grenadier. Why is Sir Jim pursuing such projects? He would probably respond: “Why not?” The unlikely sports mogul might even add that answer to the company compass.
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