Manchester United’s owners are hoping to sell the club for an astronomical price of between £6 billion and £7 billion.
This is according to The Athletic’s Laurie Whitwell, who reports that United’s exclusive financial advisor, the Raine Group, an investment banking firm, is aiming to get the Glazers as high a fee as possible as they prepare to part ways with United.
The Athletic reports, “Raine is aiming for a full sale in the first quarter of 2023 at a price between £6 billion and £7 billion.
“Whether that money and timetable can be achieved, only time will tell — and there are people in the City of London who believe such a valuation far surpasses reality.”
“They [Raine Group] want to amplify optimism to increase the amount of cash that bidders are willing to pay. They have privately communicated that many parties have registered an interest. Negotiations are intended to start at a high number.”
Whitwell insists that while the Raine Group led by Joe Ravitch, co-founder and partner of Raine, has a deadline, they are insistent they will not be in a hurry as they were during the Chelsea talks.
The investment bank spearheaded the Chelsea sale and it’s expected the sale of United will follow a similar blueprint as the London club.
The problem with this is that potential bidders may hold on and wait for United’s already dire financial situation to collapse even further before they make their move – this would have the effect of strengthening a bidder’s hand during negotiations.
The Athletic stipulates that a potential buyer for the Red Devils that has been mooted is Amazon. Amazon already has a level of involvement in European football. They have a sleeve sponsorship with Napoli and have the authority to broadcast a few Premier League games.
Another suitor is British billionaire Sir Jim Ratcliffe, who as per Whitwell, may have made a bid for United in the summer that was rejected by the Glazer siblings.
The Athletic confirm that reports of interest from Apple and the Ortega family, owners of Zara, were wide of the mark.
Despite massive interest, no serious talks have yet begun, mostly due to the Glazer family’s ridiculous valuation. It is thought that the Raine Group is also desperate to keep genuine bidders out of public discourse.