Ineos Sports, led by Sir Jim Ratcliffe, may purchase a minority stake in Manchester United, while the Glazer family remains in control. The potential investment could amount to approximately £1.5bn for a quarter of United’s shares.
Sheikh Jassim is determined to acquire Manchester United, even though Sir Jim Ratcliffe is considering buying a small portion of the club.
Qatari banker Sheikh Jassim and British industrialist Ratcliffe have offered to buy United for around £5bn, but the Glazers are looking for higher offers.
The Glazers considered selling Manchester United last year and are still reviewing their options. United’s CEO confirmed this in a staff meeting in September.
Sheikh Jassim is determined to make a bid, while Ratcliffe, the billionaire, is considering buying a part of Manchester United instead of taking full control. This would help to resolve the club’s ownership situation, which has been ongoing for almost 10 months.
Ineos Sports has offered to buy a portion of the shares owned by the Glazer family and the publicly traded stock on the New York Stock Exchange in equal parts.
Sir Jim might make an offer to acquire a 25% stake in Manchester United, suggesting that he would pay the same price for both sets of shares.
Ineos Sports might consider buying a 25% stake in Manchester United for around £1.5bn, if the club’s valuation meets the expectations of the Glazer family. The Glazers reportedly want a minimum valuation of £6bn.
The Glazers would likely stay in control of Manchester United if this deal were to happen. They took over the club in 2005.
That would make United fans upset and raise questions about the club’s future.
In the matches, the men’s team didn’t start well this season. They lost at home against Crystal Palace in the Premier League and also lost their first game in the Champions League.
On Monday evening, there was uncertainty about how involved the Glazers and their advisers were with Sir Jim’s proposal for a minority stake.
The family bought something worth almost £800m in 2005. Since then, they haven’t said much to the NYSE about the potential buyers.
Sir Jim potentially becoming a major shareholder could bring in new capital for the club’s renovation of Old Trafford.
The process of acquiring a minority stake is unclear, it might involve a tender offer.
Ineos is considering making changes to its bid, as reported by Bloomberg News. Exact details of the restructuring have not been disclosed.
Some people who own shares in the company have concerns about Sir Jim’s previous plans. These plans involved buying shares from the Glazer siblings to have more control over the club.
One uncertainty is whether Ineos Sports would eventually gain full control of Manchester United through a minority deal.
Sky News reported in May that their offer at that time included agreements that would allow Sir Jim to acquire the remaining shares of the club three years after a takeover.
The Glazers got other offers for smaller stakes or money to invest in the club, besides the bids from Sir Jim and Sheikh Jassim.
Several prominent financial investors are interested in making deals. This includes Carlyle, a large American investor, Elliott Management, a hedge fund with previous ownership of AC Milan, Ares Management Corporation, an alternative investment group based in the US, and Sixth Street, which recently acquired a 25% stake in the long-term broadcasting rights of FC Barcelona in LaLiga.
United designed these to get money for updating their old physical infrastructure.
The Glazers feel that Manchester United is worth a lot because they can make more money from broadcasting rights and commercial opportunities.
United’s shares on the New York stock exchange have been fluctuating a lot lately. There have been reports indicating that a deal is close or that the Glazers were going to stop the sale process.
The price of the stocks was around $19.43 on Monday, which made the club worth $3.25 billion.
The Manchester United Supporters Trust recently urged for the auction to be completed promptly.
The Glazers’ ownership has caused controversy and protests. Fans are frustrated because Manchester United has not won the Premier League since Sir Alex Ferguson retired in 2013. Many are upset about the debt that came with the Glazers’ takeover.
Fans were angry about the European Super League and wanted new owners for the team instead of the Glazers.
Confirming the launch of the strategic review in November, Avram and Joel Glazer said: “The strength of Manchester United rests on the passion and loyalty of our global community of 1.1bn fans and followers.
“We will evaluate all options to ensure that we best serve our fans and that Manchester United maximises the significant growth opportunities available to the club today and in the future.”
The Glazers sold a small part of their ownership in the company in 2012 but still have most of the control through a special type of shares.
“Love United, Hate Glazers” has become a familiar refrain during their tenure, with supporters critical of a perceived lack of investment in the club, even as the owners have reaped large dividends as a result of its continued profitability.
No comment from Manchester United spokesman.
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