Manchester United in Talks to Sell Itself for Over $6 Billion to Qatar Consortium Led by Sheikh Jassim bin Hamad Al-Thani
Manchester United, one of the most iconic football clubs in the world, is in talks to sell itself for more than $6 billion to a consortium led by Qatar’s Sheikh Jassim bin Hamad Al-Thani. This development represents a major milestone in Sheikh Jassim’s efforts to take over the sports brand. The Glazer family, who own minority stakes in Manchester United and control it thanks to a dual-class share structure, would be cashing out as part of the proposed deal.
Qatari Offer More Favorable Than British Billionaire Jim Ratcliffe’s Bid
The Qatari offer is currently viewed by the Glazers more favorably than a bid from British billionaire Jim Ratcliffe, founder of chemicals producer INEOS. Ratcliffe’s offer envisions that the Glazers would keep some interest in Manchester United. Manchester United would not be allowed to negotiate with any bidder other than Sheikh Jassim for the exclusivity period. It could not be learned how long this period may last. The sources cautioned that the situation remained fluid and a new bid from Ratcliffe could prevent Sheikh Jassim from securing exclusivity.
Potential $6 Billion-Plus Deal Would Be One of the Biggest Ever in Sports World
A $6 billion-plus deal for Manchester United would be one of the biggest ever in the sports world, following a similarly sized sale of the National Football League’s Washington Commanders earlier this year. It would also represent a significant premium to other soccer deals. Last year, the $3.1 billion acquisition of Chelsea Football Club by an investment group led by Todd Boehly and Clearlake Capital valued it at 5.7 times revenue for its last financial year. A sale for more than $6 billion would value Manchester United at more than 10 times last year’s annual revenue, according to Refinitiv data.
Manchester United Fans Clamoring for Change of Ownership
Record 20-time English champions, Manchester United has over 650 million fans worldwide, according to market research firm Kantar. A large number of them have been clamoring for a change of ownership. That is because the Glazers have overseen a significant downturn in the club’s fortunes, with the club winning just the last of their 20 top-flight titles in former manager Alex Ferguson’s final season in charge in 2012-13. Manchester United won the League Cup under Erik ten Hag this season, but their third-place finish in the league, 14 points behind local rivals and treble winners Manchester City, underscores the scale of the turnaround required.
Conclusion
Manchester United is in talks to sell itself for more than $6 billion to a consortium led by Qatar’s Sheikh Jassim bin Hamad Al-Thani. The potential deal would be one of the biggest ever in the sports world and represents a major milestone in Sheikh Jassim’s efforts to take over the sports brand. The Glazer family, who own minority stakes in Manchester United and control it thanks to a dual-class share structure, would be cashing out as part of the proposed deal. Manchester United fans have been clamoring for a change of ownership due to the significant downturn in the club’s fortunes under the Glazers’ control.