The Nasdaq-listed investment giant has suggested a minority investment in the Carabao Cup victors.
As the auction of the Premier League club nears its conclusion, the colossal American investor Carlyle is in negotiations to make a substantial investment in Manchester United Football Club.
Carlyle is one of several parties that have proposed acquiring a minority interest in the Old Trafford club.
Carlyle, which manages more than $370 billion (£298 billion) in assets, is one of the world’s greatest private equity firms.
In the United Kingdom, it has owned the RAC breakdown recovery service and the Addison Lee taxi group.
Carlyle’s interest in Manchester United was “serious” and had been continuous, a source said this weekend.
Carlyle’s proposal’s structure and capital deployment have yet to be finalised.
Deadline fixed for final proposals
Two weeks before Raine Group’s deadline for formal acquisition or investment proposals, Carlyle declared interest in Manchester United.
The Glazer family’s plan to evaluate the club it has owned since 2005 triggered a five-month campaign to buy it.
Since then, scores of parties have expressed interest, but just a few have emerged as genuine bids.
The Raine Group, the merchant bank handling the sale, has set a bid deadline of April 28. The Raine Group oversaw Todd Boehly and Clearlake Capital’s £2.5 billion Chelsea buyout last year.
United are in the semi-finals of the FA Cup next weekend against Brighton and Hove Albion. And the second leg of their Europa League quarter-final against Sevilla is poised at 2-2.
In February’s Carabao Cup final, Manchester United won their first trophy in six years by defeating Newcastle United 2-0.
Who is in the running?
Sheikh Jassim bin Hamad al-Thani, a Qatari industrialist and chairman of the Gulf state’s Qatar Islamic Bank, and Ineos Sports, part of the petrochemicals group owned by Sir Jim Ratcliffe, remain in the running to acquire the Glazers.
Both parties have reportedly submitted bids below £6 billion, which has been rumored to be the Glazers’ asking price for the club they purchased in 2005 for less than £800 million.
In addition, several financial investors have expressed interest in becoming minority shareholders or providing the club with some form of structured financing to enable it to modernize the infrastructure of its Old Trafford stadium and Carrington training facility.
Elliott Management, the American hedge fund that until recently owned AC Milan, Ares Management Corporation, an American alternative investment group, and Sixth Street, which recently acquired a 25% stake in FC Barcelona’s long-term La Liga broadcasting rights, are among those who have submitted minority investment proposals to Raine.
Manchester United’s sale for £5 billion, below the Glazers’ rumoured asking price, would be the largest sports club transaction ever.
It dwarfs Josh Harris’ $6 billion (£4.8 billion) purchase of the Washington Commanders NFL team this week.
According to bankers, potential future control of the club’s lucrative broadcast rights and the perception that the world’s most famous sports brand can be commercially exploited more effectively contribute to the allure of this valuation.
Manchester United’s New York-listed shares fell nearly 5% to $22.02 on Friday, valuing the club at roughly $3.8bn (£3.1bn).
Glaziers have been instructed to sell ‘without further delay’
This week, the main fan organization of Manchester United, the Manchester United Supporters Trust (MUST), demanded that the auction be concluded: “without further delay.”
“When it was announced in November that the Glazers were conducting a strategic review’ and inviting offers to buy the club, MUST welcome the news and urged the majority owners to move quickly so that any period of uncertainty would be kept to a minimum,” MUST said in a statement.
Nearly five months later, we read rumours that prospective buyers’ proposals remain below Glazers’ valuation. And that a third round of bids will be solicited.
With Erik ten Hag having made such significant strides in his first season, and with the crucial summer transfer window just a few weeks away, the news of these delays and protracted uncertainty is extremely concerning.
Since Sir Alex Ferguson’s 2013 retirement, the Glazers’ debt-fueled purchase has enraged fans.
The European Super League’s failure increased fans’ yearning for new owners. Although a transfer to state-affiliated Middle Eastern investors would be controversial, similar to Newcastle United’s Saudi-led takeover.
United’s executive co-chairmen Avram Glazer and Joel Glazer confirmed the commencement of the strategic review in November. “The passion and loyalty of our global community of 1.1 billion fans and followers makes Manchester United strong,” he said.
“We will evaluate all options to ensure that Manchester United maximizes the significant growth opportunities available to the club today and in the future and provides the best service to our fans.”
In 2012, the Glazers listed a minority stake in the company on the New York Stock Exchange. However, due to the company’s dual-class share structure, the Glazers retain nearly all voting rights and thus retain control.
The club has promised a small-scale supporter ownership system with voting rights equivalent to the Glazer family for two years.
The initiative has not been implemented despite a vow to do so by the 2021-22 season.
Despite the Glazers’ huge revenues from the club’s commercial success, fans have chanted “Love United, Hate Glazers” during their reign.
