A takeover bid for Manchester United by Qatari Sheikh Jassim bin Hamad al-Thani and British billionaire Sir Jim Ratcliffe was not high enough for the billionaire Glazer family to sell the club, according to people close to the situation.
The two bidders who have gone public with indicative offers should increase their bids if they are to convince the owner of the Glazers to sell, the person said.
The Glazers have received various proposals from other potential suitors, including some minority investment proposals that will allow them to raise capital at a more attractive price and retain control of the English Premier League club, people said. But there is no general progress.
Three people familiar with the situation said the bidders have agreed to non-disclosure agreements.
Bidders were asked to meet an informal deadline for proposals last week. They can get access to financial information sooner next week.
US bank Raine Group, the club’s advisor, is refining the offer and is ready to take both types to the next stage of the process.
The debt-free bid by Sheikh Jassim, the second son of former Qatari prime minister Sheikh Hamad bin Jassim al-Thani, is expected to value the club at around $4.5 billion, according to people familiar with the matter. The value of Ratcliffe’s offer has not been disclosed.
The addition of Sheikh Jassim’s offer could now set a global record for the price paid for a sports club. The current record was set by billionaire Walmart heir Rob Walton who paid $4.6bn for the American football franchise Denver Broncos last year.
Manchester United is listed on the New York stock exchange. The value of the market capitalization is about $3.8bn, and the club has debts of about $700m. The stock price fell about 13 percent this week to end trading on Friday at $22.89. It previously jumped from around $13 at the end of last year to north of $27 earlier this month.
Raising capital from minority investors will allow the Glazers to retain control while bolstering the club’s balance sheet, which has been hurt by the coronavirus pandemic while profits have plummeted.
The Glazers control the company through shares with extra voting rights and own about 70 percent of the equity.
United’s change of ownership will be an important moment for the sports business, as investors from billionaires to sovereign wealth funds and private equity firms pour money into the sector.
The Glazers in no rush to reach a decision and in no pressure to sell, one of the people with knowledge of the situation said; strategic review of the club which opened in November is still in the early stages. They will make a decision in the summer, before the transfer window when clubs are allowed to buy and sell players.
But the schedule has been complicated by the various proposals received and suitors who have appeared since the soft deadline for bids last week.
The decision by Sheikh Jassim and Ineos co-founder Ratcliffe to go public with the offer has drawn rebuke from Raine Group, according to three people familiar with the matter.
United fans have protested against the club’s American ownership since family patriarch Malcolm Glazer led the £790m purchase in 2005.
Earlier this week, another wealthy US Premier League club owner rejected an attempt to sell. John Henry of Liverpool FC, which also owns baseball’s Boston Red Sox and ice hockey’s Pittsburgh Penguins, said his company, Fenway Sports Group, would retain ownership.
The last Premier League club to change hands was Chelsea, in the process of being sold also managed by Raine.
Endorsed Russian oligarch Roman Abramovich put the London club up for sale last year after Vladimir Putin’s full-scale invasion of Ukraine in an auction that fetched £2.5 billion – a football industry record. The sale was made quickly as sanctions hit Chelsea and made a profit.
However, the Glazers are in a very different position, with no particular need to sell, so they have more time to assess their options.
On Sunday Manchester United will face Newcastle in the League Cup final – a win would bring the team their first trophy since 2017.
All parties declined to comment.