Sir Jim Ratcliffe’s public confirmation that he will bid for Manchester United will begin a “beauty parade” of potential buyers, experts believe.
Billionaire petrochemicals magnate Ratcliffe and his Ineos group became the first serious suitor to declare an interest in buying the club and have held talks with the Raine Group, who are overseeing the process on behalf of the Glazer family.
What that means in practice is that they are now committed to exploring the Red Devils’ books, which will enable them to do enhanced due diligence ahead of a planned formal offer for the club sometime in spring.
Like all of the groups who have registered interest, they will have to sign a non-disclosure agreement preventing them from sharing any of the sensitive financial information they will get access to.
It is a relatively inexpensive process given the size of the potential transaction but it is sign of intent from Ratcliffe, who – as a boyhood Manchester United fan – would be a popular option among a supporter base desperate to rid themselves of the Glazer family.
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“I think the next stage is that we will have a beauty parade of potential owners,” football finance expert Kieran Maguire told i.
“There is absolutely huge interest in buying Manchester United because as a global brand it’s probably unrivalled in football.
“Now Raine’s job is to identify and weed out the charlatans and the tyre kickers and find those groups with genuine aspirations to buy the club. They will then go to the Glazers and say this is what these groups are prepared to pay, let’s compare it with your asking price.
Manchester United’s owners are looking for north of £6bn for the club and those close to the process believe they are yet to decide whether to opt for a full sale or just selling a minority stake in the club.
Maguire believes that asking price is “significantly overvaluing” the club and, as i reported on Tuesday, Ratcliffe would not be willing to meet that asking price. There is a possibility any offer would likely be dependent on the club qualifying for the Champions League, with a lower price if they miss out.
“The Glazers want a bidding war and will be encouraged by what has happened so far,” one source who has worked on a Premier League takeover recently told i.
The Chelsea sale attracted more than 200 expressions of interest and that source felt the Manchester United sale had the potential to “far outstrip that”.
It’s understood that declarations of interest have come from the Middle East, Asia and the US. Ratcliffe is the most high-profile and viable UK-based investor to step forward so far.
One area of intrigue is why Ratcliffe has chosen to go public given other potential bidders have opted to stay quiet, with Maguire admitting it isn’t “immediately clear how it benefits him”.
One theory is that he is trying to leverage supporter enthusiasm and create some momentum around his bid. “He is probably the romantic choice of Manchester United fans given he is a boyhood supporter, but it’s difficult to see that mattering much to the Glazers,” Maguire said.
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