Manchester United stock spiked Tuesday on rumors that the English Premier League soccer club finally decided on a new owner. MANU shares jumped nearly 14% during trading, toward two-month highs.
Manchester United's owners, the Glazer family, also own the NFL's Tampa Bay Buccaneers. The Glazers have been fielding bids for months after initially announcing plans to seek outside investment in November. The family's U.S.-based ownership group first took the reins of the EPL powerhouse back in 2005, but have fallen out of favor with fans in recent years as the club struggled to maintain its history of on-pitch success.
Manchester United Bid Rumors
Late Monday, Qatar newspaper al-Watan reported that Sheikh Jassim bin Hamad al-Thani was positioned to be the preferred bidder for Manchester United. Jassim is the chairman of the Qatar Islamic Bank, member of the royal family and son of Sheikh Hamad bin Jassim bin Jaber al-Thani, Qatar's prime minister between 2007 and 2013.
Sheikh Jassim and his 92 Foundation's (pronounced 'Nine Two Foundation') most recent proposal from last week includes 100% club ownership, a separate fund to redevelop Old Trafford stadium and improve the playing squad, and promises to remove all the debt amassed by the previous owners. According to Mirror reports, the bid is around 5 billion pounds ($6.3 billion) and promises 1 billion pounds ($1.26 billion) in further investments.
However, Manchester United and Sheikh Jassim have not publicly confirmed the rumors. A representative of Jassim called the news of a successful bid "pure speculation," the Mirror reported.
The bidding war has narrowed to Jassim and Sir Jim Ratcliffe, CEO of Britain's Ineos Group, as the final prospects to be Manchester United's new owners. Ratcliffe's offer reportedly ranges from 5 billion ($6.3 billion) to 5.5 billion pounds ($6.93 billion) for 60% ownership. It also includes arrangements that would allow members of the Glazer family to maintain a minority stake until 2026, at which point it would be purchased by Ratcliffe and Ineos.
Although an official deal has yet to be confirmed, various local reports say an announcement is imminent. The summer transfer window kicked off on June 14, meaning teams are scrambling to sign players and finalize their squads for preseason training. The new owner will only have until Sept. 1 to make an impression by signing big-name players.
Foreign Ownership Takes Over EPL
Non-U.K.-based investors own or have a majority stake in about half of the Premier League's 20 teams. Sheikh Mansour bin Zayed Al Nahyan, vice president of the United Arab Emirates, owns Manchester United's local rivals Manchester City. City enjoyed unrivaled dominance since Mansour's 2008 takeover, winning seven Premier League titles since 2011 and the club's first UEFA Champions League title this season. It helped that Mansour has forked out billions on player transfers during his tenure.
Arsenal, Liverpool, Aston Villa and West Ham are also owned by investors based outside the U.K.
A consortium led by Saudi Arabia's Public Investment Fund bought an 80% stake in Newcastle United in late 2021. Newcastle finished in the top four of the Premier League this past season to guarantee a spot in the UEFA Champions League, the club's first appearance in the biggest annual European soccer tournament in 20 years.
But wealthy ownership doesn't always guarantee success. Eldridge Industries CEO Todd Boehly bought Chelsea Football Club for roughly $5.4 billion last year. Prior Russian owner Roman Abramovich was forced to sell the club in May 2022, following Russia's invasion of Ukraine.
Boehly spent nearly $680 million to sign 17 different players during his first two transfer windows. But Chelsea finished 12th in the Premier League standings despite the spending spree, marking its worst season since 1996.
Manchester United Stock
Manchester United stock soared 13.7% during trading Tuesday. Shares are near their highest level since hitting 23.78 on April 13. MANU stock peaked this year at 27.34 on Feb. 16, which nearly eclipsed its all-time high of 27.70 from August 2018.
Manchester United stock is down 1.9% since the start of the year.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison.
