Manchester United are for sale.
Later this week, Raine Group, the New York-based investment bank, will assess offers made to buy, or invest in, the Premier League club after setting a February 17 deadline for confirmed bids to be submitted.
But having announced last November that they were exploring “strategic alternatives” in order to find the best way to “continue building on the club’s history of success,” United’s owners, the Glazer family, still have to clarify whether they are seeking a complete sale or a partner investor to boost the finances at Old Trafford.
Sources told ESPN last week that some potential bidders are uncertain of the Glazers’ objectives, with scepticism surrounding the question as to whether they are prioritising a full sale.
Wealthy Investors From Qatar
Reports also linked wealthy investors from Qatar and Saudi Arabia with a move to buy United, while Jim Ratcliffe, Britain’s richest man, has confirmed his intention to buy the club he grew up supporting as a boy.
The future of the Glazers and Manchester United is a complex one, however, and it is not a simple story of keep or sell.
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In real terms, at close of business on the New York Stock Exchange (NYSE) on February 10, Manchester United were valued at $3.88 billion (£3.22 bn).
Share Price Climb
Since going public with their search for either new investment or a sale last November, the Glazers saw United’s share price climb from $13.03 to a high of $25.39 on February 9.
As the biggest club in the world’s most high-profile domestic league, United have a scarcity value that has led to some reports suggesting the club could be worth as much $10bn on the open market.
That would seem an unrealistically high figure, but if you imagine that United is the biggest house in the most exclusive neighbourhood in town, albeit with some work needed to be done to restore it to former glories, then the appeal to potential buyers is obvious.
Premier League rivals Chelsea were sold for £2.5bn ($3.01bn) last May, with the new owners, led by L.A. Dodgers co-owner Todd Boehly, pledging another £1.75bn ($2.11bn) in new investment into the club.
The Denver Broncos became the most expensive sports franchise last summer when the team was sold for $4.65bn (£3.86bn).
In football terms, only Real Madrid and Barcelona can match the power of United as a global brand, and that is another factor in their ultimate valuation / sale price.
