Swift conclusion unlikely as Ratcliffe enters Manchester United race
British billionaire tycoon Jim Ratcliffe has become the first individual to confirm publicly an interest in acquiring Premier League giant Manchester United – but rapidity out of the blocks may not necessarily prove advantageous in what is set to be a marathon auction.
It is already two months since the Glazer family, which has owned United since 2005, announced the club was up for sale. Last year, Roman Abramovich’s £2.5bn sale of Chelsea to Todd Boehly’s consortium was completed in less than three months despite the complications of sanctions against the Russian businessman.
The Glazers have followed Chelsea’s lead by selecting the same US merchant bank, Raine Group, to lead the sale process. However, that is where the similarities appear to end.
While Abramovich had a reason to sell quickly, there is little to push the Glazers towards the exit door – particularly with United performing admirably on the pitch under head coach Erik ten Hag and perhaps on course for a UEFA Champions League return.
Reports suggest the Glazers are playing hardball over their £5bn valuation – and that would be just the start of the spending for potential suitors, with up to £2bn thought to be required for stadium redevelopment in the coming years.
Indeed, according to new analysis by US sports business analysis website Sportico, United’s valuation has increased by 28% over the past two years to a Premier League high of $5.95bn (£4.8bn) – above Liverpool at $4.71bn, Manchester City at $4.43bn, Arsenal at $3.6bn and Chelsea at $3.47bn.
According to various reports, the lofty price tag could lead to alliances or even the Glazers sticking around with a partial investment – a fixed-term sale of one part of the business in return for an up-front cash payment, as seen between Spanish clubs Real Madrid and Barcelona and US investor Sixth Street.
Furthermore, United is by no means the only top-tier Premier League club seeking investment.
Fenway Sports Group, which owns Liverpool, initially recruited Goldman Sachs and Morgan Stanley to assess the market conditions, but a minority divestment rather than a full sale of the club is now reportedly more likely.
Ratcliffe and his Ineos group – which already owns OGC Nice in France, FC Lausanne-Sport in Switzerland and Racing Club Abidjan in Ivory Coast – may be ready to rifle through the finer details of United’s accounts alongside US-based private equity groups.
However, just as fans in the Stretford End hold their breath in anticipation of a Marcus Rashford winner, could the Glazers be expecting a sovereign wealth fund to join the list of suitors?
United supporters have waited six years for a trophy and a decade since their most recent Premier League title; they may have to be patient until the future of the club’s ownership is resolved.
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