Manchester United discusses granting exclusivity to Qatari Sheikh in $6
billion-plus sale -sources
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[June 16, 2023]
By Anirban Sen
(Reuters) - English football club Manchester United is negotiating
granting exclusivity to the consortium led by Qatar's Sheikh Jassim
bin Hamad al-Thani in talks to sell itself for more than $6 billion,
people familiar with the matter said on Thursday.
While a deal remains uncertain, the development represents a major
milestone in the efforts of Sheikh Jassim - the son of Qatar's
former prime minister who is one of the richest men in the Gulf
state - to take over the iconic sports brand.
Members of the Glazer family, who own minority stakes in Manchester
United and control it thanks to a dual-class share structure, would
be cashing out as part of the proposed deal, one of the sources
said.
The Qatari offer is currently viewed by the Glazers more favorably
than a bid from British billionaire Jim Ratcliffe, founder of
chemicals producer INEOS, the sources added. Ratcliffe's offer
envisions that the Glazers would keep some interest in Manchester
United.
Manchester United would not be allowed to negotiate with any bidder
other than Sheikh Jassim for the exclusivity period. It could not be
learned how long this period may last. The sources cautioned that
the situation remained fluid and a new bid from Ratcliffe could
prevent Sheikh Jassim from securing exclusivity.
The sources requested anonymity because the matter is confidential.
Representatives for Manchester United and Sheikh Jassim did not
immediately respond to requests for comment.
Shares of Manchester United jumped as much as 15% on the news and
ended trading in New York on Thursday up 6.8% at $24.81.
A $6 billion-plus deal for Manchester United would be one of the
biggest ever in the sports world, following a similarly sized sale
of the National Football League's Washington Commanders earlier this
year.
It would also represent a significant premium to other soccer deals.
Last year, the $3.1 billion acquisition of Chelsea Football Club by
an investment group led by Todd Boehly and Clearlake Capital valued
it at 5.7 times revenue for its last financial year.
A sale for more than $6 billion would value Manchester United at
more than 10 times last year's annual revenue, according to
Refinitiv data.
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Soccer Football - Champions League -
CSKA Moscow vs Manchester United - VEB Arena, Moscow, Russia -
September 27, 2017 General view of the Manchester United logo before
the match Action Images via Reuters/John Sibley/File Photo
The Glazer family, which made its fortune in real
estate, retail and healthcare and also owns the NFL's Tampa Bay
Buccaneers, bought the team for 790 million pounds ($1 billion) in
2005.
Record 20-time English champions, Manchester United has over 650
million fans worldwide, according to market research firm Kantar. A
large number of them have been clamoring for a change of ownership.
That is because the Glazers have overseen a significant downturn in
the club's fortunes, with the club winning just the last of their 20
top-flight titles in former manager Alex Ferguson's final season in
charge in 2012-13.
Manchester United won the League Cup under Erik ten Hag this season,
but their third-place finish in the league, 14 points behind local
rivals and treble winners Manchester City, underscores the scale of
the turnaround required.
While a section of supporters may view the deep pockets of a new
Qatari owner as the quickest way to shrink the gap between United
and Abu Dhabi-backed Manchester City, others have expressed "deep
concern" at Qatar's human rights record.
Several Middle Eastern nations have made huge investments in sport
in recent years, leading to criticism that they are trying to "sportswash"
their images.
Qatar hosted football's showpiece event, the World Cup, in 2022,
while state-run Qatar Sport Investments (QSI) owns Ligue 1 club
Paris St Germain.
Saudi Arabia's Public Investment Fund (PIF) bankrolls the breakaway
LIV Golf Series, which recently agreed to merge with the PGA Tour,
as well as Premier League team Newcastle United.
(Reporting by Anirban Sen in New York; Additional report by Amy-Jo
Crowley in London; Editing by Greg Roumeliotis, Deepa Babington and
Matthew Lewis)
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