Full sale off as Qataris bow out of Manchester United race
Qatar-based Sheikh Jassim bin Hamad al-Thani has withdrawn from the long running saga to buy Manchester United.
The Glazer family have raised their valuation of United to $5bn, despite the valuation of stock on the New York markets valuing it at $3.3bn.
The withdrawal now leaves the way clear for Sir Jim Ratcliffe to take a 25% stake in the club, which would leave US owners, the Glazer family, firmly in control of the board room.
Failsworth-born Sir Jim, a boyhood United fan and owner of chemical giant INEOS had previously bid for Chelsea. Many fans favoured a Qatari bid that promised investment in the stadium and club infrastructure.
Last week Old Trafford was not included in the list of stadiums named as a host venue for the Euro 2028 tournament, despite being the largest capacity club stadium in the Premier League.
The Old Trafford club was put on the block on November 23, last year, when the Glazers announced they would “consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the company”.
The Athletic has reported that the Glazers see more upside as Premier League football grows in global popularity, and consider a later bid for the whole club could arise with Ratcliffe in partnership with them.
If accepted, it would leave the Glazer family firmly in control of the asset they bought in 2005 for £800m, which sparked fury among fans over a rise in the cub’s debt levels, which have historically remained at around £600m.
Sir Jim’s previous offer is believed to have included a put-and-call arrangement, enabling him to acquire all the club’s shares after a three-year period.
The Glazer family have received offers for minority stakes in the business they see as a cash generative global sports and content brand.
Despite a failure to qualify for the UEFA Champions League, United are still likely to generate record revenues this year of between £630m and £640m, according to a revenue forecast released in June.
With Ratcliffe involved the Glazers can still take income off the table and to court interest from previous suitors such as US financial investor Carlyle, Elliott Management, the American hedge fund which until recently owned AC Milan, Ares Management Corporation, a US-based alternative investment group, and Sixth Street, which recently bought a 25% stake in the long-term La Liga broadcasting rights to FC Barcelona.
At market close on Friday (October 13), United’s shares were priced at $19.98 on the NYSE, giving the club a market valuation of $3.25bn.
Media pundit and former player Gary Neville posted his views on LinkedIn, asking whether a minority position can work:
“And what impact will it have on a struggling organisation?” he asked.
He restated his “non-negotiables on a takeover of Manchester United” which mainly require investment in Old Trafford: “1. A new sporting project; 2. A new or redeveloped Old Trafford; 3. A New training ground; 4. Full redevelopment of the surrounding land to create a Manchester United World and amazing fan experience; 5. Pay off the debt and stop taking dividends until the above is done; and 6. The club requires leadership that is statesmanlike on major issues that enables a fairer, more inclusive and diverse game. Leadership that builds a positive environment and culture whilst adhering to the clubs values and principles and one that is willing to make tough decisions to prevent an erosion in the clubs public image.”
He added: “My preference is and always will be now for a Glazer family full exit. They have overstayed their welcome in Manchester yet seem oblivious to this fact.”
