The Qatari group, led by Sheikh Jassim bin Hamad J.J. Al Thani, is growing more confident that it has won the bid war for Manchester United plc. This comes as the sale of football club continues into the summer months.
People with knowledge of this matter claim that the transaction was delayed by the failure of bids to meet the expectations of the Glazer family selling the company, disagreements between owners over whether or not to sell, and the fear of litigation among minority shareholders.
According to people, those in the inner circle have begun to express their confidence that Qatar will win and they believe it is only a matter time before a formal announcement is made.
One of the sources said that, as the sale process enters its eighth months, the Glazers may decide to hold on to the English Premier League Club, accepting money from an investor to renovate their club’s deteriorating stadium and training facilities. The people asked to remain anonymous when discussing confidential information.
Qatari and Manchester United spokespeople declined to comment. A representative of Raine group in New York, the bank that advises Manchester United’s owner, did not respond to an inquiry for comment. Manchester United shares were up as much as 8.3% in New York on Wednesday, and have risen by about 90% since The Glazers started their strategic review.
In the sale of Manchester United, Wall Street and grand alliances of wealth have been pitted against each other to gain control of one of the world’s most recognizable sporting assets. Ratcliffe secured financing from Goldman Sachs Group Inc. Other banks offering advice or capital include JPMorgan Chase & Co. Rothschild & Co. Bank of America Corp.
Elliott Management, owned by billionaire Paul Singer, has also offered to finance the bids, competing against rival investors Carlyle Group Inc. Sixth Street Partners and Ares Management Corp.
Ratcliffe, however, has been viewed as the favorite throughout the entire process. The people who spoke to him said that his plans included keeping Joel and Avram as minority shareholders.
Joel has been involved in recent decisions on ticket prices and commercial matters, adding to speculation that the brothers could strike a deal with Ratcliffe or another minority investor. Joel was involved in recent decisions about ticket prices and other commercial issues, which has led to speculation that the brothers might strike a deal with Ratcliffe.
This would allow Joel and Avram to remain owners while their four siblings could sell their stakes. The Glazers were considering this option nearly 12 months ago when Bloomberg News reported the US family could sell a minor stake in the Premier League club.
The people who spoke to us said that the structure of Ratcliffe’s deal had provoked opposition among current minority shareholders at Manchester United, who refused to be bought out. The Glazers own 69% of Manchester United, with the remainder being owned by multiple shareholders who have shares listed in New York. These public shares only have a fraction the voting rights as those owned by Glazers.
The people who spoke to us said that a top-three shareholder wrote a letter warning the independent directors that they could be sued if they recommended a bid which favored one group of shareholders over another. Lindsell Train is the largest shareholder, followed by Ariel Investments LLC, and Eminence Capital. Representatives from all three companies declined to comment.
Ratcliffe does not want to alter the terms of his agreement, and Sheikh Jassim is not willing to increase his offer, which, it is believed, puts the market value of this club at more than $5 billion. The Glazers had hoped to sell the club for more than $6 billion. This would have made it the most expensive team in sports history, along with the Washington Commanders of the NFL.
Uncertainty surrounds the date of a formal announcement. This week, the religious festival Eid al-Adha starts and Manchester United prepares for its high-profile US tour in July.
One person who is familiar with the situation has said that Manchester United will have about £260 ($329 millions) to spend on players during the current transfer window. The rules of financial fair play meant, however, that this money would not be spent in full.