Man United bidders get a closer look ahead of potential sale
MANCHESTER, ENGLAND >> Bidders are getting a closer look at Manchester United as the potential sale of one of the biggest soccer clubs in the world gathers pace.
Representatives of Sheikh Jassim bin Hamad Al Thani toured United’s famed Old Trafford stadium and Carrington training base on Thursday as part of a series of meetings with contenders bidding to buy out current owners the Glazer family.
The latest step in the process comes after indicative offers for the Premier League club were made last month via U.S. merchant bank Raine Group, which is handling what could be the biggest-ever sale of a sports team.
Sheikh Jassim, the chairman of Qatar Islamic Bank and son of a former Qatari prime minister, is aiming to take 100 percent ownership of United. He did not travel to Manchester for meetings with club executives but sent advisers including Shahzad Shahbaz, who is the president of the Nine Two Foundation set up to complete the takeover.
Another bidder, INEOS owner Jim Ratcliffe, will reportedly tour United on Friday.
No other contenders have publicly declared their intention to buy United.
Ratcliffe has submitted a bid for majority ownership.
It is still not certain the Glazers will cede total control of the club the Americans have owned since 2005.
Much will depend on how high the bidding goes, with figures of up to $6 billion estimated.
That is about twice as much as Premier League rival Chelsea sold for last year when it was bought by a consortium led by Todd Boehly and Clearlake Capital. Raine also handled that sale.
The Glazers, who also own the Tampa Bay Buccaneers, announced in November that they were open to selling United as they explored “strategic alternatives.”
“It is a phenomenal asset with a tremendously loyal following all around the world,” said Christopher Zook, chairman and chief investment officer of CAZ Investments, which has extensive experience in sports investments. “It is truly a worldwide brand. There are very few assets on the planet that carry that kind of recognition. So yes buying that asset would be a fantastic thing to do at the right price.”
That price remains a source of debate and the lack of public declarations of interest could reflect the limited number of viable candidates able to fund a takeover.
By comparison, a host of would-be buyers came forward for Chelsea, including Chicago Cubs owner the Ricketts family, Boston Celtics part-owner Steve Pagliuca and New York Jets owner Woody Johnson. There were also British-based bids and rumored interest from Saudi Arabia.
Chelsea eventually sold for just over $3 billion with a commitment to invest a further $2 billion.
Prospective new owners of United would likely need to invest extensively in the stadium, which could include a rebuild at an estimated cost of around $1 billion.
The tours held this week should give buyers a further indication of how high to pitch their next bids, which could be made within the next 10 days.
Sheikh Jassim has said he will look to “invest in the football teams, the training center, the stadium and wider infrastructure.”
His bid will also be debt free. Ratcliffe said he would take “fan-centered approach” to ownership, adding that he is “focusing on winning the Champions League.”
The statements from both bidders will chime with United fans who have had to watch rivals Manchester City and Liverpool dominate English soccer in recent years.
Many supporters are also desperate to drive out the Glazers, who have been subject to numerous protests during their ownership.