The billionaires are circling as the Glazers prepare to get out of Dodge…
Sir Jim Ratcliffe has pushed himself to the front of the queue in the battle to buy Manchester United, with some of the world’s richest people alerted to the possibility of taking over at Old Trafford. There is growing confidence the Glazer family are finally ready to sell control of the club in the face of mounting pressure from fans.
Ratcliffe – as confirmed by GOAL – wants to take full ownership by staging a buy-out of United’s hated US owners. And he has been quick to make it clear he is in position to complete what would be the biggest ever purchase of a sports team in the face of fierce competition.
The most expensive sports team ever
Industry insiders estimate the Glazers could command as much as £6bn by selling up – dwarfing the £4.25bn Todd Boehly and Clearlake Capital paid for Chelsea in May.
That figure included a £1.75bn obligation to invest in the club, including a rebuild of Stamford Bridge.
Roman Abramovich also wrote off £1.5bn in loans.
Initial expectations were that Chelsea would be sold for considerably less – as low as £2bn – but such was the competition from investors around the world that the price ultimately rocketed.
AdvertisementGetty ImagesBidding war
The Glazers expect even greater interest in United, who are arguably the biggest football club in the world, playing in the most lucrative league.
US investors, in particular, are drawn to the broadcast revenues generated by the Premier League – and believe those rights can be further exploited.
United’s match day revenue generated by around 75,000 fans packing into Old Trafford is also a huge draw.
But there's a catch…
But a price of around £6bn is likely to be a flat fee, with the current debts of £591.5million belonging to the club, not the Glazers.
In addition, the much-needed modernisation of Old Trafford could cost several hundreds of millions of pounds.
It is understood potential buyers have been put off by the level of debt in the past – and it remains to be seen how much of an impact that would have on the Glazers’ ability to maximise the sale price.
Ratcliffe is serious
Due to the requirement to issue regular financial updates to the New York Stock Exchange, United are obliged to be one of the most transparent clubs in the world – meaning potential buyers will already have a strong overview of their finances.
Ratcliffe will go into any bid with his eyes open – even before being granted more detailed access to accounts.
It is notable that his late move for Chelsea earlier this year came despite not being involved in the bidding process, in which buyers were allowed full view of the ‘data room’ to get a clear picture of the Stamford Bridge club’s finances.
That bid – being placed after the final deadline had passed – bemused the fellow contenders. But it was widely seen by insiders as a notice of intent to United of Ratcliffe’s ability to buy-out the Glazers and his interest in owning a Premier League club.