$5 billion buyout bid for Manchester United is still pending
According to sources close to the Qatari proposal, the process has halted because the Glazer family is unsure they want to sell after Sheikh Jassim made his final offer to buy 100% of Man Utd in a debt-free deal on June 7. Sheikh Jassim has made five bids to purchase Man Utd.
Sheikh Jassim’s $5 billion purchase bid for Manchester United is still on the table.
However, sources close to the Qatari bid said that because of worries the Glazer family may not be sure they want to sell, the process has paused.
Sheikh Jassim has submitted five offers to purchase United, with his most recent one, on June 7, offering to pay cash and acquire 100% of the team.
In a phased takeover, British billionaire Jim Ratcliffe has made competing offers to purchase 69% of the club held by the Glazer family.
The claims that Sheikh Jassim is close to purchasing Manchester United are known to his bid team, but in his eyes, nothing has changed.
In a phased takeover, British billionaire Jim Ratcliffe has made competing offers to purchase 69% of the club held by the Glazer family.
The claims that Sheikh Jassim is close to purchasing Manchester United are known to his bid team, but in his eyes, nothing has changed.
Because their primary focus has been on purchasing United, the Qatari offer has never mentioned any objectives or potential signings when it comes to transfers.
However, if United had been sold—which it still might be—the window would have been different.
Sheikh Jassim is still dedicated to paying off United’s debts, putting money into the academy, the men’s and women’s teams, and the infrastructure.
Senior members of United’s football department are unaware of the takeover’s developments.
The Qatari proposal has support within the club, and they would appreciate a quick resolution to the process.
A timeline of Man Utd’s takeover saga
In November of last year, the Glazers made the announcement that they might sell the team.
In a statement, United stated that its owners would consider “a sale or other transactions involving the company” as a potential source of new investment.
In a contentious £790 million leveraged buyout in 2005, the Glazers acquired United by taking on more than £500 million in debt to do so.
United has spent more than £1 billion servicing that debt, and according to the club’s most recent financial statements, it owes £725 million.
In February, first offers were publicly endorsed by Sir Jim and Sheikh Jassim. The third and final round of bidding ended on April 28, but Sheikh Jassim reacted after hearing rumors that Ratcliffe and INEOS had amended their offer, putting them in a strong position to buy United.
Process timeline for buying out Man United
November 22, 2022: The Glazers affirm that they are open to a sale, but they add that other options “including new investment” will be taken into consideration.
Sir Jim Ratcliffe and Sheikh Jassim Bin Hamad Al Thani make competing offers to purchase Manchester United on February 17, 2023. Qatari wants to purchase the entire club.
US hedge fund Elliott Management submits investment proposal to Manchester United on February 18, 2023.
Glazers split on sale on February 28, 2023, after offers fell short of the £6 billion valuation.
Sheikh Jassim, Ratcliffe, and an anonymous bidder advance to the next phase of the process on March 5, 2023.
On March 10, 2023, Elliott Management advances to the next round of the Manchester United sale procedure.
On March 16 and 17, 2023, Sir Jim Ratcliffe and the Qatari group will meet with the Raine Group at Old Trafford before receiving access to specific financial data. Sheikh Jassim avoids the area.
The deadline for second proposals was extended by Raie on March 22, 2023 in response to petitions from Sheikh Jassim and Ratcliffe. Before the soft deadline, Elliott Management did make a minority share bid.
The second proposal by Ratcliffe is made on March 23, 2023.
Sheikh Jassim submits his second offer on March 24, 2023.
April 11, 2023: The Glazers request that final offers from interested parties be submitted by the end of April before moving the selling process to a third round.
Sheikh Jassim makes a world record bid for Manchester United on April 28, 2023. Ratcliffe also submits his proposal before the cutoff.
16 May 2023: Sheikh Jassim submits his fourth offer, which is close to £5 billion. Man Utd is valued more highly in the INEOS deal, which is not for the entire club and would allow Glazers the opportunity to retain a 20% stake.
Sheikh Jassim presented a fifth, enhanced offer on June 7, 2023.
Although INEOS valued United higher, their offer is not for the entire club and would allow the Glazers to preserve a 20% ownership position.
The Glazers are they ready to sell?
Kaveh Solhekol, chief correspondent for Sky Sports News:
“A sizable portion of those participating in the process think that not all members of the Glazer family are fully committed to selling the club. United is owned by the Glazer family, but not all of them are on the same page.
The Qataris would be thrilled if such were the case, according to claims that they are close to purchasing Manchester United. But in my opinion, they still believe that nothing has changed. In order to make a deal, you need a buyer and a seller, and they are willing buyers but are not sure that the Glazers are willing sellers.
“The Glazers must receive the proper price in order to sell, and it is widely believed that they demand at least £6 billion. The bidders are prepared to pay more than necessary to acquire a trophy asset like United, but they won’t be taken advantage of when it comes to valuation.
According to the Glazers, they will also take into account the current school of thought in US finance circles that English clubs are undervalued and that the time to acquire, not sell, is now.
Sir Jim Ratcliffe has submitted repeated proposals, however his most recent offer, a phased purchase, is only for the 69% of the club controlled by the Glazer family. Dealing under those conditions would be challenging since other shareholders who own the remaining shares listed on the New York Stock Exchange might be prevented from participating in a transaction.
“Manchester United supporters as a whole want the takeover situation resolved as soon as feasible. They believe that this has gone on for too long. People believed it would be finished prior to the start of the transfer window and the start of the current season.
“United supporters are miffed and even irate that it took so long. But at the end of the day, the Glazer family owns the club, so they have the last say.
