The Manchester United takeover is ‘set to be delayed’ until May despite earlier reports suggesting that the deadline was set for this month, according to The Guardian. Many offers have been made for the Old Trafford club over the past two weeks, with the highest bids submitted coming from Sir Jim Ratcliffe and Sheikh Jassim bin Hamad al-Thani, both at £4.5 billion.
The Glazer family is committed to getting their £6 billion asking price for Manchester United, which apparently happens to be the reason for the delay. The most recent evaluation of the club conducted by the Financial Times’ ‘Lex’ column has put the Glazers’ £6 billion asking price into a starker perspective. United was assessed at just £1.32 billion using a method called ‘discounted cash flow analysis’, which is less than a fifth of the £6 billion the Glazers are seeking.
Glazers’ £6B Manchester United evaluation disputed
Manchester United may have been in shambles in recent years, but the club continues to gain from its global outreach and fame as the biggest club of England and arguably Europe. The club is valued at £3.55 billion using the metric established when Raine Group sold Chelsea to Todd Boehly last summer, which makes sense given that United shares, which trade on the New York Stock Exchange, offer a figure of £2.8 billion.
These figures could force the announced bidders to ‘go low’, as Sheikh Jassim wants full ownership while Ratcliffe’s Ineos petrochemicals company is only interested in acquiring the Glazers’ 69% holding. But a different offer from the Luxembourg-based hedge firm Genevra Associates may allow them to take a ‘minority position’ alongside the Glazers, who are the ‘current majority owners’.
Meanwhile, The six Glazer siblings are reportedly divided over whether to sell Manchester United, with each having their own agendas in mind, according to The Guardian. It is the family’s intention to sell the club, according to the report, but a deal being reached by the end of the month is now in doubt and will be delayed until after the season is over. It follows Sportsmail’s Monday revelation that those who submitted bids for the Old Trafford club anticipate hearing from the people overseeing the process this week.
Moreover, the price had experienced a dip by about 13% following rumours that the Glazers family, in an U-turn were thinking about keeping control of the the club. The ‘soft deadline’ for submission of offers was February 17. In preparation for the next process, Raine Group has been sorting through the bids. Following their first indications of interest, those who are still in the race should be granted access to United’s complete financials.
First proposals are unlikely to be accepted, and a period of negotiation is anticipated to follow. There is even a dispute amongst the bidders that the Glazers’ asking price of £6 billion is an unrealistic amount. Given the current developments, it won’t be a surprise to the Manchester United fans who are keeping their Anti-Glazer sentiment intact despite the club lifting their first trophy since 2017 in the Carabao Cup, that a sale is delayed until May.