Unlock Editorial Digest for Free
FT editor Roula Khalaf chooses her favorite stories in this weekly newsletter.
Manchester United’s Qatari bidder is withdrawing from the race to buy the Premier League club, leaving a clear path for Sir Jim Ratcliffe to seal a deal with the Glazer family.
Sheikh Jassim bin Hamad Al Thani, the son of one of Qatar’s richest men, is the only one looking to acquire 100% of United, while Ratcliffe has explored a number of investment options , including recent minority stakes.
However, after a final round of negotiations with the Glazer family, which has owned Manchester United since buying it via a leveraged buyout in 2005, Sheikh Jassim’s bid was revealed by a person with knowledge of the bid. Sim decided to quit. The person added that the Glazers had set a “fanciful” valuation for the club, which is publicly listed on the New York Stock Exchange.
Sheikh Jassim, whose father was a former prime minister of Qatar and head of its sovereign wealth fund, had offered to buy the club outright without using debt. He also pledged to invest in team and club infrastructure. Both Manchester United’s home ground at Old Trafford and the team’s training center are in need of expensive upgrades.
The decision comes nearly a year after the Glazer family said they would consider a variety of strategic options for the club, including a potential sale. The family’s advisers are also in discussions with a number of institutional investors, including U.S. private equity firms, to explore alternative routes to raising capital.
The protracted sale process, handled by investment bank Raine, drew criticism from people close to each bidder. Several people familiar with the matter stressed that control of the club was divided between the six siblings, but they may not always agree with this.
Just a few months ago, US investors Clearlake Capital and Todd Boehly bought London rivals Chelsea FC for £2.5 billion, which remains a record for an outright sale of a football club. Within months, the Glazers were seeking offers for the club. The price fueled hopes that United – a club with higher revenues and a wider global following – could command a larger sum.
However, people close to the Glazer family and United have expressed doubts about the chances of Qatar’s bid being successful for months, pointing to Ratcliffe’s willingness to be structurally flexible. The British billionaire’s latest offer appears to be an attempt to keep his family at the club.
United’s New York-listed shares have fallen more than 12% this year, valuing the club’s equity at about $3.2 billion, a sign that investor expectations for a full sale have waned. Both bidders made offers that significantly increased the club’s value.
Ratcliffe, the founder of chemicals empire Ineos, is a lifelong Manchester United supporter and has long suggested that the club return to its local roots. However, his initial proposal only focused on buying out the Glazer family, which could lead to potential trouble for the club’s minority shareholders.
This summer, Ratcliffe’s team considered changing their offer to include potentially buying a minority stake from the Glazer family and those who hold listed shares in the club. One person said the latest acquisitions focused on around 25% of the club.
Sources familiar with the matter revealed that if Ratcliffe agrees to buy Manchester United, he may become the club’s next natural owner. Manchester United’s board will meet in the coming days, ahead of its next earnings report.
The American owner of Liverpool Football Club, another Premier League club with a storied history and a large global fan base, has also explored a potential sale following Chelsea’s buyout. However, Fenway Sports Group finally agreed last month to sell a small stake in the club to a new private equity firm, Dynasty Capital.
Svlook
