The Glazer family may look to set a ‘soft’ deadline for a potential sale of Manchester United following reports of interest from a United Arab Emirates-based consortium.
Earlier this week, it was reported that there is interest from the UAE in taking over Man United, with separate claims suggesting that the Glazer family may be willing to sell if an offer in excess of £5billion is tabled.
Since the Glazer family purchased United for £790m back in 2005, a large portion of the club’s fanbase have voiced their concerns about the ownership model and the growing debt – currently more than £1billion.
According to BBC Sport, United took on an extra £105m to help fund the summer transfers.
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And although the Glazers retain a majority 48.9 percent stake in the club, there have been significant changes in the organisation's hierarchy in recent years.
INEOS owner and United supporter Sir Jim Ratcliffe purchased an initial 27.7 percent stake - worth around £1.3bn - in 2023, before further investing £100m to increase his share to 28.94 per cent in 2024.
Ratcliffe has also taken control of ‘football operations’ and had a role in appointing new CEO Omar Berrada last year.
The 72-year-old has also invested heavily in upgrading the club’s facilities and pumped in £50m to upgrade their Carrington training ground.
But there could soon be new owners at Old Trafford if reports prove to be true.
On Wednesday, Turki Alalshikh, the chairman of Saudi Arabia’s General Entertainment Authority, took to X to reveal what he knows about the situation.
"The best news I heard today is that Manchester United is now in an advanced stage of completing a deal to sell to a new investor – I hope he’s better than the previous owners,” he wrote.
It is unclear who he is referring to, but he replied to claims that he was, in fact, interested in purchasing United in another post.
Alalshikh added: “Yesterday’s post about Manchester United's potential sale meant one thing: the club is in an advanced negotiation phase with a new investor. Just to clarify, I am not the investor, nor are they from my nation.”
As previously mentioned, it is still thought that an Emirati consortium’s plans are at an early stage, but there is nothing to suggest a formal bid is imminent.
So what does this mean for Ratcliffe?
Well, there is a clause which became active in August, which could directly impact Ratcliffe.
A ‘drag-along’ agreement may force Ratcliffe to also sell his stake in the club on the same terms as the Glazers.
The clause also prevents minority shareholders from blocking a sale and ensures it can proceed when a buyer wants to acquire 100% of the club.
So, is there a specific date by which the Glazers may look to sell up?
As reported by The Athletic, it may be in the Glazers’ interest to sell before February 2027.
If the family do seek a full sale before then, the share price has to be above the $33 Ratcliffe paid, which would then see him make all of his money back.
After February 2027, Ratcliffe could be dragged along by the Glazers, meaning he could potentially lose huge sums of money.
Ratcliffe loses the $33-per-share guarantee after the third anniversary of his investment, which would allow potential buyers to offer less money for the club, which in turn would negatively impact both the Englishman and the Glazers.
United’s current traded share price is around $16, less than half of what Ratcliffe paid in 2023.
Topics: Manchester United, Football, Premier League
Luke Davies