GLAZERS LOOKING FOR A SPORTS FRANCHISE RECORD £6 BILLION TO SELL MANCHESTER UNITED
Manchester United announced on Tuesday last week just hours after confirming Cristiano Ronaldo’s departure that the Glazer family was exploring bringing new investors into the club.
“Manchester United PLC, one of the most successful and historic sports clubs in the world, announces today that the Company’s Board of Directors (the “Board”) is commencing a process to explore strategic alternatives for the club,” the club statement read. “The process is designed to enhance the club’s future growth, with the ultimate goal of positioning the club to capitalize on the opportunities both on the pitch and commercially.”
The statement confirmed the Manchester United board “will consider all strategic alternatives” for the club including “new investment into the club, a sale, or other transactions involving the company.” The board will also assess initiatives to strengthen the club including stadium and infrastructure redevelopment and expansion of the club’s commercial operations on a global scale. The Glazer family appointed a team of consultants to plan the £200 million redevelopment of Old Trafford and the expansion of the club’s training facilities in April.
A statement from the Glazer family read: “As we seek to continue building on the club’s history of success, the board has authorized a thorough evaluation of strategic alternatives. We will evaluate all options to ensure that we best serve our fans and that Manchester United maximizes the significant growth opportunities available to the club today and in the future.”
“Throughout this process, we will remain fully focused on serving the best interests of our fans, shareholders, and various stakeholders.”
The Glazers have owned United since 2005, a 17-year period in which the club has been plagued with controversy and dwindling performances on the pitch, especially since former manager Sir Alex Ferguson left the club in 2013. The family has remained almost universally unpopular throughout their reign at the club with mass protests taking place at the time of their takeover, and again in 2010, 2021, and this year. The family is reportedly looking for a fee in the region of £6 billion to sell the club and are intent on cashing in by making Manchester United the most expensive sports franchise purchase in history.
The family has employed the Raine Group, the group that handled the £4.25 billion sale of Chelsea Football Club to LA Dodgers part-owner Todd Boehly and his consortium in May as the club’s “exclusive financial advisor.” They have also appointed Latham & Watkins LLP as their legal counsel. According to reports, the Raine Group has not yet put a deadline on receiving offers for Manchester United and it is expected that many of the same parties who took part in the process to buy Chelsea will register interest.
Although United’s statement alluded to partial ownership, ESPN’s Rob Dawson reports that a full takeover is the most likely outcome. Sources close to the club have also revealed that the statement issued Tuesday was deliberately vague so as not to weaken the Glazers’ negotiating position.
The move to sell the club comes after Manchester United star player Cristiano Ronaldo’s explosive interview with Piers Morgan a few weeks prior where the Portuguese international joined the criticism of the Glazers, claiming they had no interest in the welfare of the club.
“The Glazers, they don’t care about the club. I mean, professional sport, as you know, Manchester is a marketing club. They will get money from marketing – the sport, it’s, they don’t really care, in my opinion. The fans, they’re always right. I think the fans should know the truth. (They) should know the players want the best for the club. I want the best for the club. This is why I came to Manchester United.”
Ronaldo exited the club by “mutual agreement” last week.
As far as potential buyers, INEOS Chief Executive Officer Sir Jim Ratcliffe is reportedly ready to bid for the club once it is formally put up for sale. Ratcliffe is a lifelong United fan and had an interest in buying Chelsea when the club was put on the market. A spokesperson of the 70-year-old hinted in August that Ratcliffe’s desire to buy United was motivated by his “love for the club” rather than finances.
“This is not about the money that has been spent or not spent,” a close advisor to Ratcliffe said. “Jim is looking at what can be done now and, knowing how important the club is to the city, it feels like the time is right for a reset.” The Oldham-born billionaire was knighted by the Queen for services to business and investment in 2018 and is the second richest man in the UK with a net worth of £23.38 billion according to Bloomberg’s 2020 list of British billionaires. For context, the Glazer family is believed to be worth around £4 billion.
Investment Corporation of Dubai (ICD) is also said to be one of the frontrunners to acquire the club. Other potential buyers for the club include private equity pair Josh Harris and David Blitzer, and basketball moguls Stephen Pagliuca and Larry Tanenbaum. Apple’s CEO Tim Cook is also said to be interested in acquiring the club.
On Thursday, Manchester United Supporters Trust chief executive Duncan Drasdo called for the process used in the sale of Chelsea Football Club to become a model for United’s sale and demanded fans get a stake at Old Trafford if the Glazers indeed sell the club.
“We need owners who are going to want to work with supporters in partnership, are going to value supporters being part of the ownership structure,” Drasdo said. “Being part of a transparent relationship where everyone’s goals are aligned working towards success on the pitch and fans and the whole football club acting like a family.”
“I think when you look at the way Chelsea was sold – and of course, it was exceptional circumstances… but I think what the government did there is actually something they should be doing for all football clubs. Clubs shouldn’t be sold to the highest bidder, regardless of what their intentions are. And as I understand it, Chelsea didn’t go to the highest bidder. It went to the bidder that met certain criteria, including sustainable investment in the football club. So we think that should be extended to every football club regardless of those special circumstances.”
Whether the Glazers sell the club in whole or partially, Manchester United fans will surely see that as movement in the right direction. Fan involvement in club ownership is becoming a trending concern in football clubs all across Europe, and it’s just a matter of time before it becomes the norm. While the Glazers’ £6 billion asking price could be considered by most buyers to be steep considering United’s downhill trend in the past 10 years, one thing is clear, United fans are eager to see the American family leave and are looking for brighter and better days in the near future with a new regime.
-Maher Abucheri
Twitter: @pabloikonyero