Qatar group now confident of winning Manchester United bidding war

LONDON – The Qatari group led by Sheikh Jassim bin Hamad Al-Thani are increasingly confident they have won the bidding war for Manchester United, thwarting a rival offer from British billionaire Jim Ratcliffe as the sale of the club extends into the crucial summer months. 

The transaction process – heading into its eighth month – has been beset with delays, with bids failing to meet expectations of the selling Glazer family, splits among the owners about whether to sell and fears of litigation from minority shareholders, people with knowledge of the matter said. 

But those within the inner circle of the Qatari bid have now begun communicating their confidence of victory and believe it is just a matter of time before an official announcement is made.

However, the Glazers could still make an unlikely last minute-decision to keep hold of the club, accepting funds from an outside investor to renovate the club’s dilapidated stadium and training facilities, one of the people said. They asked not to be identified discussing confidential information. 

Spokesmen for the Qatari group, the Nine Two Foundation, and United declined to comment.

A representative for Raine Group, the New York-based bank advising United’s owners, also did not respond to a request for comment. 

Ratcliffe has been seen as favourite for much of the time before Sheikh Jassim’s latest bid, which is for 100 per cent of the club and the details of which were not disclosed.

Ratcliffe’s plans include keeping on Joel and Avram Glazer as minority shareholders, which will go down terribly with fans who have wanted the Glazer family out for a large part of 18 years.

Despite recurrent fan protests against the Glazers, Joel and Avram remain keen supporters of the team that their father, the late Malcolm Glazer, bought in a 2005 leveraged buyout and subsequently saddled with massive debts.

Joel has been involved in recent decisions on ticket prices and commercial matters, adding to speculation the brothers could strike a deal with Ratcliffe or another minority investor. 

The structure of Ratcliffe’s deal has provoked opposition from minority shareholders in United, who would not be bought out, the people said.

About 69 per cent of the club is owned by the Glazers, the rest spread among multiple stakeholders who own shares listed on the New York Stock Exchange.

A top-three shareholder sent a letter to United’s board warning that the independent directors could be at risk of being sued for recommending a bid that favours one set of shareholders over another – in this case, Ratcliffe buying out only Glazer shares but not those of the minority shareholders.

The largest minority shareholders include Lindsell Train, Ariel Investments and Eminence Capital. Representatives for all three declined to comment. 

Ratcliffe is not inclined to change the structure of his deal, while Sheikh Jassim will not increase his bid, which is understood to value the club at more than US$5 billion (S$6.77 billion).

The Glazers had hoped for a valuation in excess of US$6 billion, which would make the club the most expensive sports team ever sold, alongside the National Football League’s Washington Commanders. 

It is unclear when a decision will be formally announced.

As the sale unfolds, United have about £260 million (S$444.5 million) available for player purchases in the ongoing transfer window, one person familiar with the situation said.

They said, though, that financial fair play rules meant that not all this amount would be spent, unless there are significant player sales. BLOOMBERG