Sheikh Jassim aims to win Manchester United takeover battle with extra $1bn
The Qatari bid for Manchester United, led by Sheikh Jassim Bin Hamad Al Thani, hopes to swing the takeover battle in its favour with the promise of an extra $1bn set aside for investment in the club.
The $1bn (£800m) is additional to Sheikh Jassim’s offer for the club, which values United at around £5bn, and would be ring-fenced for spending on improving the stadium and training ground as well as transfers, industry sources told City PM
British billionaire Sir Jim Ratcliffe’s rival offer is believed to value United slightly higher, although it is for only a shade over half of the club while Sheikh Jassim has proposed a full buyout of the Glazers and minority shareholders.
Both bids are understood to value United at £5bn or more, a significant premium on the Premier League club’s current share price and a world record sum for the sale of any sports team.
Chemicals tycoon Ratcliffe’s offer is believed to involve borrowing and would give the Glazers, who own 69 per cent of the club, the chance to retain a stake. Sheikh Jassim’s bid is said to be debt-free.
The chair of Qatar Islamic Bank’s pledge of an additional $1bn investment has similarities with Todd Boehly’s winning bid for Chelsea last year, which included a promise to inject a further £1.75bn into the club, on top of the £2.5bn purchase price.
United’s sale process, like Chelsea’s, is being handled by US merchant bank the Raine Group. The Glazers are expected to examine the third-rounds bids this week, with suitors keen to wrap up any deal by early May in order to plan for the summer transfer window.
Several institutional investors have offered financing, bid for a minority stake or both, should the Glazers wish to retain control of the 20-time English champions.
Supporters have called on the Glazers to sell up in full, 18 years after the family bought the club for £790m in a highly leveraged takeover. Since then they are estimated to have taken more than £1bn out of United in fees and dividends.
Thousands of United fans made their point in a march before Sunday’s win over Aston Villa, which tightened their grip on a top-four place in the Premier League.
Sections of Old Trafford cheered during the game when United manager Erik ten Hag picked up a green and gold scarf synonymous with a campaign to oust the Glazers.