Manchester United Sale Extension Fuels Uncertainty and Stock Drop
The bankers overseeing the sale of Manchester United extended a tentative deadline for bids on Wednesday, triggering speculation that the American owners of the team, the Glazer family, won’t sell the club.
The club’s stock (NYSE: MANU) dropped 7.26% on Thursday amid concerns that the family will retain control of the club and sell a minority stake to a U.S. hedge fund.
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Meanwhile, before the tentative Wednesday deadline, INEOS founder Jim Ratcliffe revised his offer of £5 billion ($6.12 billion, including debt), but could not match Qatari Sheikh Jassim bin Hamad Al Thani’s offer, people close to the negotiations told Sportico. Al Thani’s most recent bid for the team appears to be in the ballpark of £6 billion ($7.3 billion), the amount the Glazer family is asking for the 145-year-old team, said the people. They added that Al Thani, the president of the Qatar Islamic Bank (QIB), had two more rounds of meetings with the Glazers last week.
In addition to Ratcliffe and al Thani, six more bids, including parties from Saudi Arabia and U.S.-based funds Elliott Investment Management, Ares Management and Sixth Street, have met with the Glazers offering financing. On Thursday, Finnish entrepreneur and former Nokia executive Thomas Zilliacus joined the bidders, according to Reuters, and he said he’s “willing and expects to go higher than that $3.9 billion,” in a statement. The market capitalization of the team was over $4 billion as of Wednesday’s close. As part of his bid, Zilliacus said he will invite Manchester United supporters from around the world to be co-owners.
A few more groups, including American investor Bruce Karsh’s Oaktree Capital, are expected to meet with Glazers soon.
Raine Group, which is overseeing the sale for the Glazers, declined to comment.
Last November, the Glazer family announced they are considering selling the team the late Malcolm Glazer bought in 2005 for about $1.5 billion. The family sold 10% of their holding via the 2012 U.S. listing and have sold more shares since but retain majority ownership. Six of Malcolm Glazer’s children currently own a combined 69% of the team.
According to Sportico’s valuations, Manchester United is worth $5.95 billion.
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