Skip to main content

Don't knock Glazers United bidders told

Bidders for Manchester United have been told to stop running public campaigns which could damage the Glazer family following the official start of the race to take control of the club.

A statement from the Qatar bid in particular is understood to have caused consternation among those running the process, with the promise to return United to its “former glories” seen as implied criticism of the present owners.

The confirmed bidders are a group led by Sheikh Jassim bin Hamad bin Jaber Al Thani, chairman of one of the Emirate’s biggest banks and Ineos, fronted by British billionaire Sir Jim Ratcliffe. It is understood there is no bid from Saudi Arabia despite initial interest.

On Friday, the Qatari bid issued a detailed statement outlining plans that were clearly designed to appeal to supporters critical of the Glazer regime. This included the declaration that it would be a “completely debt free” purchase following the controversies of the Glazers’ leveraged buyout.

The Qatar bid was not alone in issuing a statement timed to coincide with Friday’s 10pm UK time “soft deadline” for opening bids. The Ineos bid issued its own statement on Saturday morning in which it talked of “putting the Manchester back into Manchester United” while investing “to make them the number one club in the world once again”.

The Times understands that has prompted Raine, the New York bank managing the sale for the Glazers, to firmly remind bidders that the process is meant to be private, having been required to sign comprehensive non-disclosure agreements as part of the process.

It is not yet clear how many other groups have entered the race to buy United. The main rivals to the Qatari and Ratcliffe bids are expected to be private equity funds in the United States, with The Sunday Times reporting that US hedge fund Elliott is linked to one offer.   This could be a bid for a minority stake or to fund other bidders.

Both known bids are thought to value United somewhere between £4 billion and £5 billion, which the Glazers will hope to drive up. While the Qatari bid is for the entire club, Ratcliffe’s Ineos offer is for “majority ownership” by purchasing the Glazers’ 69 per cent stake, including the Class B shares which carry the majority of the voting rights. Ratcliffe’s group could then seek to pick up the rest of the shares once they have control.

United’s debt is understood to be around £570 million and the Qatari bid claims it would immediately wipe the whole amount off the books. Ineos has spoken to banks including JP Morgan and Goldman Sachs about possible support, though the petrochemicals company insists that it will not load any fresh debt onto the club and is seeking to run the club as a successful sporting enterprise rather than a business.


Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....
Post a Comment
Read more