- Share Price Volatility and Fan Sentiment at Manchester United
- Ineos may acquire 25%
- Deal near completion
Early the following week, Sir Jim Ratcliffe’s Ineos Sports may announce an agreement to acquire a 25% stake in the Red Devils for approximately $33 per share.
The Glazer family and Sir Jim Ratcliffe are nearing completion of a $33-per-share transaction in which the petrochemicals magnate will acquire a 25% stake in Manchester United Football Club.
Long-Standing Negotiations
After months of negotiations spanning the last 18 years, the controlling investors of the Red Devils and the Ineos magnate have reached a price of approximately $33 per share.
Should it be verified, the price would be in excess of 75% higher than the closing price of $18.43 on the New York Stock Exchange on Thursday. At that time, the market capitalization of the Old Trafford club was $3.04 billion (£2.44 billion).
Preliminary Nature of Agreement
On Friday, concerned parties warned that the agreement was still in exploratory negotiations and not finalised.
However, nearly exactly one year to the day after the Glazers confirmed that they were commencing a strategic review of Manchester United’s ownership, a transaction between the two parties is nearly complete.
According to sources, the announcement could occur as early as Monday, but it could be delayed by a few days.
Reportedly, the Glazers are eager to conclude the agreement prior to Thursday’s start of the American Thanksgiving holiday.
Sir Jim’s Ineos Sports plans to buy 25% of the Glazers’ listed A-shares and B-shares, which have enhanced voting rights.
A sign of Sir Jim’s influence, the club announced earlier this week that chief executive Richard Arnold will resign after only two years in the position. Patrick Stewart, the general counsel of United, will assume the role of interim chief executive.
Club’s Recent Achievements and Future Investments
Despite the fact that United defeated Newcastle United to win the Carabao Cup last season, its first trophy in six years, the past year has been marked by considerable unrest both on and off the pitch.
“Take a step towards financial freedom – claim your free Webull shares now!”
In addition to the over £1 billion he will spend to acquire a 25% stake, Sir Jim is reportedly planning to invest $300 million (£245 million) of his multibillion-pound fortune in modernising United’s ageing infrastructure.
The funds will be personally financed by Sir Jim and will not be added to the existing debts of Manchester United.
In recent weeks, there have been rumours that the magnate, along with former cycling supremo Sir Dave Brailsford and other Ineos Sports colleagues, will assume immediate authority over football affairs at the club.
Numerous United supporters have voiced concern regarding the possibility of Sir Jim acquiring a minority stake, as it would enable the Glazers to maintain their influence at Old Trafford.
The family, which acquired the club for just under £800 million in 2005, has been impenetrable throughout the process and has not provided the NYSE with any substantive statements since the engagement with potential purchasers commenced.
Restructuring Proposals and Competitive Offers
Previous versions of Sir Jim’s proposals for the club, which centred on attaining complete control, incorporated put-and-call agreements that would become active three years subsequent to an acquisition in order to facilitate his purchase of the club’s remaining shares.
Last month, the Monaco-based tycoon, who owns Nice, presented a restructured arrangement to resolve United’s future deadlock.
Following a price impasse, Sheikh Jassim bin Hamad al-Thani, a Qatari industrialist, retracted his offer to acquire 100 percent of the club.
In addition to Sir Jim and Sheikh Jassim’s offers, the Glazers received other credible minority stake or financial options to finance their club acquisition.
The aforementioned entities comprise an offer from Carlyle, a prominent American financial investor; Elliott Management, an American hedge fund that owned AC Milan until recently; Ares Management Corporation, an alternative investment group based in the United States; and Sixth Street, which recently acquired a 25% interest in the long-term La Liga broadcasting rights of FC Barcelona.
The Glazers value the club highly because they believe it can commercialise the world’s most famous sports brand and earn more lucrative broadcast rights in the future.
Share Price Volatility and Fan Sentiment
Rumours of nearing completion or formal withdrawal by the Glazers have caused significant volatility in the shares of United, listed in New York, in recent months.
Controversy and demonstrations have plagued the Glazers’ tenure, and the lack of a Premier League championship since Sir Alex Ferguson’s retirement in 2013 has fueled supporter indignation over the debt-driven nature of their acquisition.
The supporters’ ire over the Glazers’ proposed participation in the ill-fated European Super League initiative in 2021 solidified their desire for new ownership.
“Avram and Joel Glazer, in confirming the commencement of the strategic review in November, stated: “The fervour and allegiance of our worldwide community of 1.1 billion fans and followers are the foundation of Manchester United.”
“We will evaluate all options to ensure that we best serve our fans and that Manchester United maximises the significant growth opportunities available to the club today and in the future.”
The Glazers listed a minority stake in the corporation in New York in 2012.
Throughout their tenure, the phrase “Love United, Hate Glazers” has gained widespread usage, as supporters bemoan what they perceive to be inadequate investment in the club, while the proprietors profit substantially from its capacity to generate profits.
Shankland’s late goal sustains Scotland’s table-topping aspirations
