Manchester United’s owners, the Glazer family, have remained silent in the recent takeover drama, leaving bidders frustrated.
We have three known interested parties after the “soft deadline” for bids passed more than a week ago. The first proposal is led by Sir Jim Ratcliffe, a wealthy United supporter and the creator of the industrial chemicals company INEOS.
The second is the Qatari offer, which is being led by financier Sheikh Jassim bin Hamad Al Thani. Finally, there is a bid from US hedge fund Elliott Management, which formerly owned AC Milan and is currently concentrating on United.
The Glazers are reportedly holding out for between £5 billion and £6 billion and have tasked Raine Group with managing the deal. It is believed that they are delaying the bid procedure to see if more interested parties express their interest. The Glazers’ decision to stay at the club would be the worst-case scenario if United were to be sold.
The Athletic reports that there are “no certainties” that the Glazers will sell out in any way. Joel and Avram Glazer are reportedly still “reluctant” to sell, with Joel specifically being “in his own way, still emotionally invested” in the Old Trafford team.
The problem is that Kevin, Bryan, Edward, and Darcie want to “cash in for great profit,” yet neither of the two brothers has the money to buy out their four siblings personally.
However, the two offers that have been made fall short of the Glazers’ estimated value of £6 to $8 billion. Joseph Ravitch, the investment banker in charge of the discussions, reportedly advised them to “not part with United for anything less than £6 billion.”
The US hedge fund Elliott Investment Management has offered to help finance any potential takeover but has also indicated that it would provide financing to the Glazers should a sale fail to materialize. This could help the Glazers maintain their position of power.
In the meanwhile, the story speculates that United’s statement that they are increasing season ticket prices for the first time in 11 years may be an indication that the Glazers are ready to stay.
According to them, the decision provides the American family with an “insurance policy” of greater club revenue in the event that they decide against selling.
The six Glazer siblings presently hold 69% of United’s stock, but importantly, they are Class B shares, which have 10 times the voting power of the remaining 31% that they do not own.
It’s easy to assume that United supporters won’t be pleased if they decide to stay in power at Old Trafford.
