Qatar’s Sheikh Jassim bin Hamad Al Thani withdraws bid to buy Manchester United: reports

LONDON – Qatari banker Sheikh Jassim bin Hamad Al Thani has withdrawn a bid to buy Manchester United, a source close to the deal told AFP on Saturday.

The English Premier League side announced nearly a year ago that they were exploring “strategic alternatives to enhance the club’s growth”, including a full sale.

Sheikh Jassim and British billionaire Jim Ratcliffe were the front runners after several rounds of bidding earlier in 2023, but the process has stalled in recent months despite the anger of supporters towards the current owners, the American Glazer family.

The Daily Mail reported that Ratcliffe is now set to secure a 25 per cent stake in the club for around £1.5 billion (S$2.5 billion).

Ratcliffe would then slowly increase his ownership of the club at steadily higher valuations, one person said. 

Any offer from Ratcliffe could still risk opposition from minority shareholders. 

“I will oppose anything that gives the majority Glazers a materially better deal than minority investors,” said Ricky Sandler, founder of Eminence Capital. “That is for sure.”

The hedge fund which he started in 1999 manages about US$7 billion (S$9.6 billion) of investments, and is the third-largest shareholder of United’s listed shares, according to data compiled by Bloomberg.

The Glazers have owned the English giants since a leveraged takeover in 2005 for £790 million saddled the club with huge debts.

Figures in March showed the amount had swelled to £970 million.

Sheikh Jassim’s bid was for full control of United and promised to clear the club’s borrowings.

Further talks last week broke down despite an improved bid believed to be around £5 billion, far more than United’s current stock market valuation of US$3.3 billion or £2.7 billion.

The Glazers’ valuation expectations have been aggressive based on other deals. In 2022, the US$3.1 billion acquisition of Chelsea by an investment group led by Todd Boehly and Clearlake Capital valued it at 5.7 times revenue for its last financial year.

Valuing United more than Sheikh Jassim’s bid, at US$7 billion for example, would be equivalent to 11 times the club’s revenue over the last 12 months, according to London Stock Exchange Group data.

By contrast, Ratcliffe is reportedly willing to buy a smaller stake to break the impasse over the Glazers’ £6 billion asking price.

“We have always been neutral between Jassim and Ratcliffe,” said Chris Rumfitt, head of Manchester United Supporters Trust. “But if the Ratcliffe deal maintained the Glazers ultimately in charge, I think that is something fans would be very hostile to.”

Founder of petrochemicals giant Ineos, Ratcliffe is a boyhood United fan and already has a portfolio of sports investments.

Ineos owns French club Nice and Swiss side Lausanne-Sport, as well as leading cycling team Ineos Grenadiers and is a major sponsor of the Mercedes Formula One team.

United’s fortunes on the field have also faded under the Glazers’ tenure.

The Red Devils have not won the Premier League since former manager Alex Ferguson retired in 2013 and last won the Champions League in 2008.

While United won their first trophy in six seasons with the League Cup in February, they currently sit 10th in the Premier League and have lost their first two Champions League group-stage matches for the first time in the club’s history.

Fans have also been left frustrated at a lack of investment in United’s infrastructure over the past two decades. The record 20-time English champions have over 650 million fans worldwide, according to market research firm Kantar.

Old Trafford remains the largest club football stadium in England with a 74,000-seat capacity, but is in need of significant redevelopment to keep pace with the facilities offered by their rivals.

United’s home was overlooked in favour of Manchester City’s 55,000-capacity Etihad Stadium for Britain and Ireland’s successful bid to host Euro 2028.

Sheikh Jassim’s deal also promised US$1.7 billion to finance plans for a new stadium and training centre, as well investment in the transfer market on players.

But the bid by the son of a former Qatari prime minister raised concerns over the potential growth of state influence in the EPL.

Reigning champions City’s fortunes have been transformed since a takeover from Sheikh Mansour bin Zayed Al Nahyan, a member of Abu Dhabi’s ruling family, in 2008.

In 2021, the Saudi sovereign wealth fund also bought a controlling stake in Newcastle United.

Amnesty International has called on the Premier League to tighten ownership rules to ensure they are “not an opportunity for more sportswashing”. AFP, REUTERS, BLOOMBERG