Exclusive: Manchester Utd negotiating exclusivity with Qatar’s Sheikh Jassim in $6 billion-plus sale talks
June 15 (Reuters) – English soccer membership Manchester United (MANU.N) is negotiating granting exclusivity to the consortium led by Qatar’s Sheikh Jassim bin Hamad al-Thani in talks to promote itself for greater than $6 billion, individuals acquainted with the matter stated on Thursday.
While a deal stays unsure, the event represents a serious milestone in the efforts of Sheikh Jassim – the son of Qatar’s former prime minister who is without doubt one of the richest males in the Gulf state – to take over the enduring sports activities model.
Members of the Glazer household, which personal minority stakes in Manchester United and management it due to a dual-class share construction, can be cashing out as a part of the proposed deal, one of many sources stated.
The Qatari provide is presently seen by the Glazers extra favorably than a bid from British billionaire Jim Ratcliffe, founding father of chemical substances producer INEOS, the sources added. Ratcliffe’s provide envisions that the Glazers would preserve some curiosity in Manchester United.
Manchester United wouldn’t be allowed to barter with any bidder apart from Sheikh Jassim for the exclusivity interval. It couldn’t be discovered how lengthy this era could final. The sources cautioned that the scenario remained fluid and a brand new bid from Ratcliffe may forestall Sheikh Jassim from securing exclusivity.
The sources requested anonymity as a result of the matter is confidential. Representatives for Manchester United and Sheikh Jassim didn’t instantly reply to requests for remark.
Shares of Manchester United jumped as a lot as 15% on the information, and have been buying and selling up 10% at $25.53 in afternoon buying and selling in New York on Thursday.
A $6 billion-plus deal for Manchester United can be one of many largest ever in the sports activities world, following a similarly-sized sale of the National Football League’s Washington Commanders earlier this yr.
It would additionally characterize a major premium to different soccer offers. Last yr, the $3.1 billion acquisition of Chelsea Football Club by an funding group led by Todd Boehly and Clearlake Capital valued it at 5.7 occasions income for its final monetary yr.
A sale for greater than $6 billion would worth Manchester United at greater than 10 occasions final yr’s annual income, in accordance with Refinitiv information.
Record 20-time English champions, Manchester United has over 650 million followers worldwide, in accordance with market analysis agency Kantar. Numerous them have been clamoring for a change of possession.
That is as a result of the Glazers have overseen a major downturn in the membership’s fortunes, with the membership successful simply the final of their 20 top-flight titles in former supervisor Alex Ferguson’s ultimate season in cost in 2012-13.
Manchester United received the League Cup beneath Erik Ten Hag this season, however their third-place end in the league, 14 factors behind native rivals and treble winners Manchester City, underscores the dimensions of the turnaround required.
While a piece of supporters could view the deep pockets of a brand new Qatari proprietor because the quickest solution to shrink the hole between United and Abu Dhabi-backed Manchester City, others have expressed “deep concern” at Qatar’s human rights file.
Several Middle Eastern nations have made large investments in sport in latest years, resulting in criticism that they’re attempting to “sportswash” their pictures.
Qatar hosted soccer’s showpiece occasion, the World Cup, in 2022, whereas state-run Qatar Sport Investments (QSI) owns Ligue 1 membership Paris St Germain.
Saudi Arabia’s Public Investment Fund (PIF) bankrolls the breakaway LIV Golf Series, which just lately agreed to merge with the PGA Tour, in addition to Premier League group Newcastle United.
Reporting by Anirban Sen in New York
Additional report by Amy-Jo Crowley in London
Editing by Greg Roumeliotis and Deepa Babington
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