Qatar’s Sheikh Jassim makes improved bid for Manchester United, says source
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Manchester United fans displaying banners protesting against the Glazer family’s ownership of the club.
PHOTO: REUTERS
LONDON – Qatari banker Sheikh Jassim bin Hamad Al Thani has made an improved 11th-hour bid to purchase Manchester United from the Glazer family, a source close to the negotiations told AFP on Tuesday.
Sheikh Jassim, who is the chairman of the Qatar Islamic Bank and is part of the Qatari royal family, is in a bidding war with British billionaire Jim Ratcliffe after the pair emerged as the main contenders to buy the Premier League giants.
Ratcliffe appeared to be the front runner when a third round of bidding closed in April. The Ineos chemical company founder, a supposed boyhood United fan but also a Chelsea season-ticket holder, had reportedly placed a higher valuation on the club as he seeks a majority stake.
But his bid – said to be for just over 50 per cent of the Glazers’ 69 per cent of shares – could allow for American executive co-chairmen Avram and Joel Glazer to remain invested in the Red Devils with a minority share. This would also be a move that would be deeply unpopular with supporters.
By contrast, Sheikh Jassim’s bid is for 100 per cent control of the club and he also promises to wipe United’s £970 million (S$1.62 billion) debt and invest in all areas – the stadium, training facilities, player transfers and the women’s and youth teams.
The club declined to comment, and investment bank Raine Group, which is running the bidding process, also did not respond to a request for comment.
The bids from both sides were undisclosed, but Daily Mail journalist Mike Keegan, who is close to sources from the bidding process, said that Sheikh Jassim’s bid is “significantly improved”.
Other reports have said that it is close to £5.6 billion.
The Glazers, who have failed to win over fans
It remains to be seen if they are ready to cash out at a slightly lower amount from the Qatari bid, but still at an enormous profit, after they first invited external investment last November.
According to a report in April by The Times, Ratcliffe had outbid Sheikh Jassim as he was the only bidder to have valued the club at around £6 billion.
However, the amount he will be paying – from bank loans which will supposedly be put on Ineos – is expected to be less as he is not seeking to buy 100 per cent of the club.
As an example, if he purchases 51 per cent, he will need to fork out £3.06 billion at his £6 billion valuation, while Sheikh Jassim will buy the Glazers’ 69 per cent for £3.86 billion at £5.6 billion valuation.
It is also worth noting that all figures are speculation from media reports at this point as there is yet to be any official statement from either the club, the Glazers or Raine Group.
Sky Sports chief reporter Kaveh Solhekol, in his analysis of the whole process, said: “This shows the determination of Sheikh Jassim’s Qatari bid and just how serious they are when it comes to buying Manchester United.
“But it’s very difficult to say which bid is favourite to succeed because the decision ultimately lies with the Glazers.
“What they have to decide is whether they take all of the money now from Sheikh Jassim or do they want some of the money from Sir Jim Ratcliffe while keeping a stake which would give them more money in the future.”
The Manchester United Supporters’ Trust has called for a swift conclusion to the process to allow new owners to be in place for the summer transfer window.
United manager Erik ten Hag is unsure of the transfer budget, saying over the weekend: “I will go for high standards, so I am planning my squad for next season in the background, with high standards.
“Then it is up to the others to decide if the finances are there.” AFP, REUTERS
