Home » Formal bids for Manchester United expected in the coming week

Formal bids for Manchester United expected in the coming week

by Ayantan Chowdhury

Manchester United have a lot going on currently surrounding the club, both on the field and off it.

While the Mason Greenwood incident has once again reared its ugly head, there is also the small matter of the club finding new owners within the first quarter of the year.

There have been a lot of talk over a potential sale and the prices involved and we could be getting the first real concrete steps in that direction sometime this week.

Formal bids for United expected very soon

The Mail on Sunday have revealed that “Formal bids for Manchester United are due to be submitted in the next week or so.”

A minimum price of £4billion is expected and initial offers are expected from potential buyers in the US, the Middle East and Asia.

“But the early front-runner in the race to buy United is British billionaire and boyhood fan Jim Ratcliffe, owner of the Ineos chemicals conglomerate,” the report stated.

The club are currently valued at £3billion ($3.67billion) on the New York stock market with the prices of United’s shares increasing since the talk of new ownership.

Football finance expert Kieran Maguire of Liverpool University explained the bid process in a clear and succinct manner in the report.

A buyer is expected to pay around 25 percent more than that for full ownership and control, implying a current and minimum £4billion price tag.

Analysts say in United’s case the recent share price rise means this premium is already included but higher bids are still likely.

New owners will have their task cut out

It must also be remembered that the new owners will have to spend considerably on the squad whilst simultaneously improving facilities at Carrington and rebuilding or revamping Old Trafford.

“There is a vanity asset premium in relation to Manchester United which I suspect has not yet been factored in by the market,” said Maguire.

“The Glazers are hoping for £6billion to £8billion but (the) business fundamentals do not justify that price, especially with a substantial capital expenditure commitment (needed) for a new or enhanced Old Trafford.

“Therefore it will either be auction headiness or testosterone that results in a price of that nature, but we’ve seen that before.”

The Glazers have been trying to drum up interest in recent weeks. Co-owner Avram Glazer reportedly flew to the World Cup in Qatar where he is said to have held a number of informal meetings with potential investors.

They were also spotted in Dubai recently while the club even even opened a pop-up shop in the Swiss ski resort of Davos during the recent meeting of the World Economic Forum.


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