The most interesting soap opera in the world of football right now is not the one about Lionel Messi’s future, but the one about the possible sale of Manchester United.
• Also read: Manchester United: The prestige English club is up for sale, making the rich salivate
The UK media has been making a big fuss about this news for a few weeks now, all the more so since the deadline for submitting bids to the Glazer family, the current owners, expired last Friday.
The American family has received offers from Qatari Sheikh Jassim Bin Hammad Al Thani, who is of royal family origin, as well as Britain’s Sir Jim Ratcliffe and his INEOS group.
However, we learned on Saturday that the American fund Elliott Management had also submitted a financing offer.
A lot of money
According to leaked data, the Glazer family want £5.1 billion (C$8.3 billion) to part ways with the prestigious club.
The Financial Times values the club at £2.9 billion (CA$4.7 billion).
That’s a very important difference, but there’s more to it because the club is heavily in debt. According to the Telegraph, Man’s debt stood at £514.9m (CA$841m) in 2022, up 23% from £419.5m (CA$685m) in the financial year corresponds to 2021.
This is where Sheikh Jassim’s proposal becomes interesting as he offers to pay off the club’s debt in full to return it to its former glory.
Invest
Sheikh Jassim’s offer applies to the whole club, but does the Glazer family want to sell permanently or are they looking for a financial partner?
The Sheikh, who runs one of Qatar’s biggest banks, was educated in England and is a die-hard Manchester United fan. He looks big for his heart club.
“The Nine Two Foundation will write off the debt and then invest in the teams, training centre, stadium, infrastructure, fan experience and communities supported by the club,” read a press release transcribed by the Telegraph.
“Our vision is for Manchester United Football Club to be recognized for excellence in football and be perceived as one of the greatest football clubs in the world,” the statement added.
Sale or Investment?
There is one unknown detail that will make all the difference in this case. Does the Glazer family want to sell at any price or get fresh money? Nobody is able to answer this question.
The Qatari bid envisages a clean and simple takeover and that appears to be the case with the one put forward by Sir Jim Ratcliffe as well. However, observers agree that the latter will not be able to compete with Sheikh Jassim’s very deep pockets.
Elliott Management’s offer is different, as it suggests organizing a financial package for a third-party takeover. In the end, the American company wants to pass itself off as a matchmaker.
And when should everything work?
In an ideal world, by the end of the season when the transfer window opens, the new administration will be in place.
Sky Sports football analyst Kaveh Solhekol believes things could be settled fairly quickly with just two offers on the table.
A look inside the Glazer family
Manchester United is owned by the American Glazer family. It was the late Malcom Glazer who first took over the team after owning the Tampa Bay Buccaneers in the NFL.
Originally from Rochester, New York, he made his fortune in real estate, owned a bank, and founded First Allied Corporation, which invested in a variety of companies including Harley-Davidson and Tonka Toys.
In September 2003 he bought his first shares in Manchester United, a company then listed on the London Stock Exchange. At the end of 2003 he held 15% of the club’s shares and doubled his stake in October 2004.
In May 2005, he bought 28.7% of the shares from two other owners, eventually receiving 57% of the shares.
A few days later, his ownership increased to 75% within a month, he owned 98% of the club and then bought the remaining 2%. In total, he will have spent £790m (CAD$1.3bn) to become the sole owner of the club.
To refinance, the Glazers sold shares on the New York Stock Exchange. Since Malcolm Glazer’s death in 2014, the family’s holdings (90%) have been split equally between his six children.
Debts
Most of the capital used for this purchase came from loans, which carried annual interest of £60 million (C$98.3 million).
The level of debt raised doubts among supporters, who were reluctant to see the Glazer family’s arrival. Some of them founded FC United of Manchester, a club that played in the sixth division from 2015 to 2019.
The Manchester United Supporters’ Trust has been working since 2010 to find a way to return ownership of the club to supporters.
On June 29, 2005, around 300 fans demonstrated at Old Trafford, the club’s home stadium, and around 100 police officers had to intervene. Supporters claimed the Glazers are enemies of Manchester United. The Love United Hate Glazer campaign lasted for several years, while membership of the Manchester United Supporters’ Trust swelled to 125,000 in 2010.
Other demonstrations
The relationship between the Glazers and supporters is therefore tumultuous, and the failed attempt to create the European Super League in 2021 has added fuel to the fire.
Although the club quickly recanted following the protests, on April 22, 2021, around 20 supporters invaded the club’s training ground to demonstrate against the Glazer family. Two days later they were 2000 to demonstrate.
Another protest took place at Old Trafford on May 2 in connection with a game against Liverpool. This time there were 10,000 people. About 100 protesters took the field and the game was delayed and then postponed.
It was the first time in Premier League history that a game had been postponed due to partisan protests.