Avram and Joel Glazer have been offered a “best of both worlds” deal in order to agree the sale of a controlling stake in Manchester United to Jim Ratcliffe and his Ineos group. An improved bid valuing the Premier League club at more than £5billion enables United's Executive Co-Chairmen to retain their shares post-takeover; or to sell them at a guaranteed additional premium during the first two years of a Ratcliffe/Ineos regime.
The English billionaire's latest offer targets division amongst the Glazer family over the timing of a sale. Four of the six Glazer siblings want to profit immediately from a valuation more than double the record £2.5bn paid for Chelsea last year. Arvam and Joel, however, believe that external investment can help develop United into a £10bn company and are interested in “strategic alternatives” to a full sale of the family shareholding.
Ratcliffe's revised proposal would see Ineos take over the running of the club while spending on new players, sports science and improvements to Old Trafford and the Carrington training ground. Avram and Joel would step down from their executive roles, yet retain an inside seat to assess the effectiveness of the Ineos-led overhaul. As a condition of the takeover agreement, it is understood that the pair would be granted options to sell their shares – at a premium to the current bid price – after year one and year two of Ineos' stewardship; or to retain their minority ownership indefinitely.
Individuals familiar with the negotiations say that a deal is “close” to being agreed. Record Sport understands that Ratcliffe is confident that his latest offer will be accepted by the Glazer family. In contrast, a competing bid from Qatar fronted by Sheikh Jassim bin Hamad al-Thani, the chairman of Qatari Islamic Bank, would take Manchester United private by buying the New York Stock Exchange-listed plc's shares in full. Though the Qatari offer – which is also said to have been improved to over £5bn in Friday's “final round” of bidding – promises to make United “completely debt-free”, it would force the entire Glazer family to relinquish their shareholdings, directorships and the prospect of future profits.
Both Ratcliffe, 70, and Sheikh Jassim, the son of Qatar's former prime minister, Sheikh Hamad bin Jassim bin Jaber Al Thani, have marketed themselves as being United supporters since childhood. Monaco-based Ratcliffe has charged Dave Brailsford, the former head of British Cycling, with establishing a best-of-class sports department at United should Ineos' bid be accepted.
The Qatari offer is understood to have been approved by both Paris Saint-Germain president Nasser Al-Khelaifi and the Emir of Qatar, Tamim bin Hamad Al-Thani. If successful, United would be placed at the helm of a multi-club network alongside PSG and Sporting Braga. In addition to its ownership of PSG and recently acquired minority stake in Liga Portugal's Braga, Qatar Sports Investments is working on adding further European clubs to its portfolio.
Several US-based financial organisation including Elliott Investment Management and Carlyle Group have also made offers to buy minority stakes or provide financing as part of the Glazers' “strategic review”. Finnish businessman Thomas Zilliacus has bid to buy a majority stake with the “final price subject to negotiations with the sellers.”
Upon announcing its intention to explore “all strategic alternatives, including new investment into the club, a sale, or other transactions involving the Company” last November, United's board made it clear that the process remained exploratory.
“There can be no assurance that the review being undertaken will result in any transaction involving the Company,” a club statement read. “Manchester United does not intend to make further announcements regarding the review unless and until the Board has approved a specific transaction or other course of action requiring a formal announcement.”
READ MORE
