Mister Ineos and the sheik: the auction for United is already a record

Five billion pounds, 5.7 billion euros. It is the psychological threshold that the Glazer family has set for the sale of Manchester United, the one that would transform the Red Devils into the highest paid sports club ever, a record that currently belongs to the Denver Broncos, an NFL franchise that changed hands last year for 4.3 billion euros. The deadline for interested parties to present a new offer has expired at 10 pm Italian time. And the Glazers, according to the first rumors arriving from Manchester, have gotten what they wanted.

The sheik and the billionaire

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The favorites remain those of the first hour, Sheikh Jassim from Qatar and Jim Ratcliffe, the richest man in Great Britain at the helm of Ineos. Both impressed the Glazers during their visits to Manchester last week, with Ratcliffe particularly impressed by his choice to introduce himself. By the first deadline, which expired on February 17, both had presented offers of just over 5 billion euros, enough to get to the second phase, that of talks, not to immediately convince the Glazers. Sheikh Jassim remains convinced that he has United in hand: he is ready to buy 100% of the club (the Glazers own 69% of the shares), he does not have too close ties with the ownership of PSG, avoiding those conflicts of interest prohibited by the ‘Uefa, and as an avowed Red Devils fan, he has ambitious plans for their relaunch on the pitch and their continued expansion outside, where they have a billion supporters and are one of the most recognized football brands in the world. Ratcliffe based his idea on giving United back to the fans and Manchester: he’s aiming for 69% of the club and for this too he could benefit from a partnership with one of the other interested groups.

The outsiders

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Yes, because the sheik and Ratcliffe aren’t the only ones interested in the team. The Glazers expect to receive at least 6 offers, including one from the Elliott fund, the same one that owned Milan before selling it to RedBird. Unlike what was done with the Rossoneri, however, Elliott is not interested in buying United but in becoming a partner, providing funds to some of the consortiums interested in taking over the club. Elliot’s representatives landed in Manchester last week, having access like the other consortiums admitted to the second phase of the sale process at Old Trafford, the “Theater of Dreams” which is in urgent need of a makeover, and at Carrington, the training center of the club, and in talks with the current ownership. There are other investment funds ready to move, but their identity has not yet been revealed.

How does it work

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Raine, the New York bank that is handling the club’s sale process, has collected the second offers and will inform the groups admitted to the third and final phase of the sale process by the end of the month. The one in which the Glazers will decide which offer satisfies them the most and will begin a period of exclusive negotiation with that consortium. The US family that has owned United since 2005 could also decide not to sell, if it does not receive an offer deemed adequate. In that case it is possible that Elliott will step forward as a minority partner, with the Glazers still owners but with new capital to use to give the club the investment it needs. It seems an implausible scenario, because Sheikh Jassim and Ratcliffe have further raised the bar, exceeding that psychological threshold which represents the point of no return for the Glazer family, the one in which the team will change hands for the highest amount ever spent for a sports club. It remains only to decide to whom.