In a groundbreaking development, Sheikh Jassim, the son of Qatar’s former prime minister and one of the wealthiest individuals in the Gulf state, is making strides in his bid to acquire the renowned sports brand, Manchester United. Although the deal’s outcome remains uncertain, this represents a significant milestone.
According to sources, the Glazer family, who hold minority stakes in the club and exercise control through a dual-class share structure, would be divesting their interests as part of the proposed deal. The Qatari offer is reportedly more favorably viewed by the Glazers compared to a bid from British billionaire Jim Ratcliffe, the founder of INEOS chemical company, in which they would retain some involvement with Manchester United.
During the exclusivity period, Sheikh Jassim is the only prospective purchaser allowed to engage in negotiations with Manchester United. The duration of this exclusivity period is currently undisclosed, with the possibility of a new bid from Ratcliffe jeopardizing Sheikh Jassim’s exclusivity.
At this time, representatives for Manchester United and Sheikh Jassim have not provided any immediate comments in response to inquiries.
Following the news, shares of Manchester United saw a significant rise of up to 15% and were currently trading 10% higher during Thursday’s afternoon trading session in New York.
If the €6 billion-plus deal for Manchester United materializes, it would be one of the largest transactions ever recorded in the sports industry, comparable to the recent sale of the National Football League’s Washington Commanders.
Moreover, this deal would represent a substantial premium compared to past soccer acquisitions. Last year, the acquisition of Chelsea Football Club by an investment group led by Todd Boehly and Clearlake Capital valued the club at 5.7 times its previous year’s revenue.
According to Refinitiv data, a sale exceeding €6 billion would value Manchester United at more than 10 times its annual revenue from the previous year.
Manchester United, the record-holding 20-time English champions, boasts a fanbase of over 650 million worldwide, as confirmed by market research firm Kantar. Among these fans, a considerable number have been advocating for a change in ownership, as the Glazers’ tenure has coincided with a decline in the club’s success since the departure of former manager Alex Ferguson in 2013.
Although some supporters believe that a new Qatari owner with significant financial resources could help bridge the gap between Manchester United and the Abu Dhabi-backed Manchester City, others have expressed concerns regarding Qatar’s human rights record. The involvement of several Middle Eastern nations in sports investments has faced criticism, with accusations of using sports to improve their public image.
Notably, Qatar has previously hosted the World Cup in 2022, and Qatar Sport Investments (QSI) currently owns Ligue 1 club Paris St Germain. Meanwhile, Saudi Arabia’s Public Investment Fund (PIF) supports the breakaway LIV Golf Series and has recently merged with the PGA Tour, in addition to its ownership of Premier League team Newcastle United.
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