According to latest reports in England, a group of Qatari investors have lined up a massive bid to buy Manchester United. The blockbuster takeover could provide manager Erik ten Hag with enormous financial backing, as the Dutchman attempts to take the Red Devils back to competing at the highest level.
Manchester United’s current owners – the Glazer family, had announced in November that they were open to putting the club up for sale. The Americans have set mid-February as the deadline for receiving bids from interested parties for the potential takeover.
Excerpts from the statement released by the Glazers to the New York Stock Exchange read:
“The process is designed to enhance the club’s future growth, with the ultimate goal of positioning the club to capitalise on opportunities both on the pitch and commercially.”
“As part of this process, the Board will consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the Company. This will include an assessment of several initiatives to strengthen the club, including stadium and infrastructure redevelopment, and expansion of the club’s commercial operations on a global scale, each in the context of enhancing the long-term success of the club’s men’s, women’s and academy teams, and bringing benefits to fans and other stakeholders.”
“There can be no assurance that the review being undertaken will result in any transaction involving the Company. Manchester United does not intend to make further announcements regarding the review unless and until the Board has approved a specific transaction or other course of action requiring a formal announcement.”
Manchester United Under the Glazers
The Glazers bought Manchester United in 2005 for a reported fee of 790 million pounds. The American business family purchased the club through a highly leveraged deal, which has been criticised in hindsight for loading debt onto the club.
The Red Devils were debt-free when Malcolm Glazer purchased the club from John Magnier and J.P McManus. Primarily financed through loans i.e. borrowed money, over 1 billion pounds have been spent to service the debt, or claimed by the owners.
#MUFC are the only Premier League club to pay dividends to their shareholders, mainly the Glazers. Since 2016 they have paid a hefty £166m, averaging £22m a year. Note: the high £33m payment in 2021/22 included including £11m delayed from 2020/21. pic.twitter.com/iVdTC0u3F6
— Swiss Ramble (@SwissRamble) August 16, 2022
The club still owes around 500 million pounds in debt. In fact, the Glazers spent only 270 million pounds of their own money in the purchase. According to the Swiss Ramble, the American owners also collected 154 million pounds in dividends over the last decade, the highest for any PL club.
Another 23 million pounds was paid as management fees under a consultancy agreement, according to the MUFC Finance PLC borrowing. The Glazers also made a profit of around 465 million pounds from the sale of class A shares, with none of the proceeds going to the club. In total, the owners have benefited at least 1.1 billion pounds since taking over.
The Red Devils have also spent heavily on transfers recently. According to the Football Observatory, United had a net spend of 903 million pounds in the last decade, the highest in Europe. This involved a payment of 1.3 billion to sign players, while 395 million was recouped by player sales.
Who Are The Potential Buyers?
As reported by the Daily Mail, a group of Qatari investors are looking to launch a blockbuster takeover bid for Manchester United before the deadline. The report states that the group of private, wealthy individuals are prepared to dislodge other interested parties and completely back Ten Hag in the upcoming transfer window.
The Glazers have set a price tag of 6-8 billion pounds to sell the club. This exceeds the amount Sir Jim Ratcliffe, the frontrunner to buy the club, is willing to pay. The INEOS chief has also roped in investment banking firms Goldman Sachs and JP Morgan to assist him in the takeover.
However, no progress has been made in the talks, meaning Ratcliffe may not budge from the 4 billion fee he is ready to pay. However, the Americans may only drop their asking price if they feel the interest from Qatar isn’t serious enough.
The Qatari investors in the running could offer a marginally higher bid for Manchester United, between 4.1-4.5 billion pounds, and this has gotten Sir Jim Ratcliffe worried. One of the potential buyers could be Sheikh Tamim bin Hamad Al Thani, the Emir of Qatar.
Now, UEFA does not allow two clubs who can meet in a European competition to share an owner. The Emir already owns PSG but has a strategy in place to circumnavigate the existing rules. The idea would be to show UEFA that PSG and United will be owned by separate entities and run by a different set of personnel.
Such a system has earlier worked for RB Leipzig and RB Salzburg, so there is a possibility it could be accepted. More recent reports suggest that the European football’s governing body have, in fact, accepted the model, as long as the Emir adopts a hands-off approach.
Read More:
- Sir Jim Ratcliffe Is Getting Closer to Buying Manchester United, Negotiations at an Advanced Stage Over A Potential Takeover
- Amazing News For Fans As Teenage Sensation Agrees New Long-Term Contract To Extend His Stay At Manchester United
- Erik Ten Hag Denies Another Loan Move For South American Youngster, Wants Him to Stay at United
If the deal does go through, Manchester United will be the third club in recent times to undergo a big-money purchase, after Newcastle United and Chelsea. The latter duo have made significant investments in transfers since their respective takeovers, with contrasting success.
What are your thoughts on a potential takeover of Manchester United by the Qatari group of investors? How could it involve the image and future of the club? Share your thoughts in the comments.
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