Both public bids for a full takeover of Manchester United have passed the first stage and the bidders Sir Jim Ratcliffe and Sheikh Jassim bin Hamad Al Thani have been given the green light by the Glazers to enter more serious negotiations.
According to Telegraph Sport, both bidders have been informed that the sale is a three-step process and they will enter the second stage.
As of now, no detailed financial information has been shared by the Glazers despite more than a fortnight having passed since the the tabling of their indicative offers.
United sale reaches Round 2
As things stand, the offers tabled by the two bidders are considerably less than what the greedy American family are targeting.
But recent reports have indicated a compromise in between the two prices could be reached with the Americans holding out for £6 million while the bids are likely to be less than £5million.
The prospective new owners are staring at the prospect of financing a new stadium and training ground, or renovating both.
There is also the need to prepare a summer transfer budget so as to help Erik ten Hag continue to improve the team with the same momentum. All this could add up to anywhere between £1bn and £2bn.
🚨🚨🌕| NEW: The sale is a three-stage process and the leading contenders have been told that they have entered the second stage now. [@TeleFootball]
— centredevils. (@centredevils) March 4, 2023
On top of this, the Glazers plan to keep the debt for the new owners to deal with. The report mentioned that United’s gross debt, according to their latest accounts, stands at £680 million.
The Telegraph report also detailed how both parties are approaching the bid.
“Sheikh Jassim is offering to buy out the Glazers and United’s minority shareholders in their entirety, clear the club’s debts and invest in a new stadium, training ground and playing squad.
“Ratcliffe, who is being advised by Goldman Sachs and JPMorgan, does not plan to load any fresh debt on to the club and hopes his local ties could prove significant.”
April the new target
There is also the possibility of the Glazers staying on with the help of a investment partner.
US hedge funds Elliott Management and financiers Oaktree Capital and MSD Partners have submitted their proposals which include offering funding for potential suitors.
The Glazers have asked the Raine group and all brokers associated with the deal for it to be finalised by the end of April.
Recently reports had indicated that the first set of face-to-face meetings between the bidders and the club could take place within the next fortnight.
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