The Manchester United takeover process is not expected to reach a swift conclusion, with the Glazer family “fully committed” to exploring opportunities before committing to a full sale.
Confirmation of the club appointing investment banks to oversee a possible sale came on Tuesday night but i has learned the club has effectively been up for sale since the summer. Liverpool’s decision to formally confirm they were looking at investment opportunities may have pushed Manchester United to do the same.
But any hope of a quick conclusion to the process is slim. No buyer is lined up yet and sources told i the process would be “thorough”.
As i reported on Tuesday night, the Glazers are looking for a minimum of £5bn to buy Manchester United – significantly more than Liverpool’s owners Fenway Sports Group want for full control of the Reds.
The price reflects Manchester United’s global fanbase, commercial potential and has baked in future media contracts and the potential to expand through ventures like the Metaverse which insiders believe will connect and monetise the millions of supporters they have around the world.
It is a huge price and could prompt a group of wealthy investors to pull together in a consortium to fund the bid, similar to Chelsea’s Todd Boelhy-fronted deal.
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Takeover sources told i the most likely source of interest will come from the US, although Kuwait and Dubai may register interest in owning arguably the biggest club in the world. Qatar, Saudi Arabia and Abu Dhabi already own football clubs, although wealthy individuals from those states could – in theory – put together a bid as they did for Chelsea.
The appointment of the Raine Group to oversee the sale is significant given the proximity to the Stamford Bridge takeover. The New York merchant bank have the contacts and experience to connect a raft of high net worth clients with the process.
The public announcement should accelerate the process but it would be a major surprise if the club is under new management before the turn of the year.
While the Chelsea sale took only three months, that was driven by the Government sanctioning owner Roman Abramovich. The Glazers are under no such pressure and will look to sell at the top price point. They are also open to other investment opportunities, including a partial sale or commercial partnerships which would see fresh funds pumped into the club.
But realistically, it is the prospect of a full sale – and cashing out when the market remains buoyant – that is the real end game for both buyers and sellers.
Given the complexities surrounding a deal of this scale, sources told i any hopes of a takeover being completed in time for the January transfer window were “unrealistic” and instead believe that any buy out is likely to come towards the end of the Premier League season.
That would allow any new owners to get their ducks in a row in time to make changes in the close season, which is a pivotal trading window for a club that desperately needs further investment to make them competitive in the Premier League.
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Therein lies the rub for any interested parties – the relative lack of investment from the Glazer family means they will need to have access to significant capital to make the club successful.
A huge stadium revamp is in the early investigation stages while the club have also signalled their intention to make their newly-launched data department the best in the world. They have fallen behind other clubs in terms of facilities and playing staff and any new owners would have to address that.
There is also the rising threat of Newcastle United to the Champions League hegemony and the fall-out of the European Super League breakaway to contend with.
While the appeal of owning such a gigantic institution is clear, it does not come without pitfalls.
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