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Options for United's sale

It’s been almost six months since the Glazers said they would explore a sale of Manchester United, the football club owned by the Floridian family since 2005.

Two suitors have emerged so far: UK chemicals billionaire Jim Ratcliffe and Sheikh Jassim, the son of one of Qatar’s richest men. Ratcliffe submitted his second bid — putting a value on the club above £5bn — on Thursday evening.

But supporters are still worried that the Glazers won’t sell up in full, and are instead planning to extend a stay that has been protested from day one. Many are still angry at the amount of debt put on the club to fund the original takeover, as well as fading fortunes on the pitch.

If the Glazers want to remain in charge, they will have plenty of options. A number of US investment firms, including Elliott Management, are keeping a watchful eye on the process in case an opportunity arises.

The Glazer siblings could opt to sell a slice of the business, leaving some of them in control but bringing in new minority shareholders.

They could also seek some new financing, perhaps with a view to investing in the club’s infrastructure. Old Trafford, once the pinnacle of English football stadiums, and the Carrington training ground both need money spent on them. But that sort of funding won’t come cheap, and the club already has sizeable debts.

Another option could be to copy what Real Madrid and Barcelona have done — take in money tied to a particular revenue stream, such as commercial or media rights. Barcelona sold off a chunk of its future TV revenue, generating more than €500mn in cash. Real Madrid received €360mn in return for rights to stage non-football events at its revamped stadium. In both cases, this came from Sixth Street, another US investor keeping close tabs on the Man Utd process.

People close to one of the bidders warned this week that the Glazers might be stringing everyone along to augment their negotiating power as they explore other options that would leave them at the helm of one of the world’s most famous sports teams.

On the other hand, one private investment firm speculated that they were being used to squeeze every penny from Ratcliffe and Sheikh Jassim. Paranoia is everywhere.

United’s New York-listed shares have roughly doubled since the club was put on the block. But there have been a few bumps along the way, and the current enterprise value of roughly $5bn (£4.1bn) remains some way short of Ratcliffe’s latest offer. The market looks positioned for a deal, but has yet to be convinced.

 

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