# Soccer – Deep pockets needed to persuade Glazers to sell United Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Jim Ratcliffe's Interest in Buying Manchester United Meta Description: Jim Ratcliffe's interest in buying Manchester United has fans hoping for new ownership, as Glazers face pressure to sell after recent poor performances. URL: https://financedigest.com/soccer-deep-pockets-needed-to-persuade-glazers-to-sell-unitedhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-19t084746z2lynxmpei7i098rtroptp4soccer-england-mun-che-report-1736815422556-compressed.jpg) By Simon Evans MANCHESTER, England (Reuters) – British billionaire Jim Ratcliffe’s interest in buying Manchester United has raised the hopes of the club’s supporters that their American owners, the Glazer family, might now sell the club and pave the way for a return to glory on the field. Whether that happens will depend on three key factors: how much they think the club is worth; whether there are potential buyers willing to pay that price; and finally, if the much-criticised Glazers are willing to take the money and leave. So far, there has been no indication from the publicity-shy [Glazers that the club is up for sale](https://www.financedigest.com/manchester-united-tanks-on-report-glazers-may-avoid-sale-with-new-investment.html "Manchester United tanks on report Glazers may avoid sale with new investment") or that they would be willing to engage with an offer. There have, however, been reports that they might be interested in selling a portion of shares to a [potential minority investor](https://www.financedigest.com/virgin-orbit-says-space-startup-in-talks-with-potential-investors.html "Virgin Orbit says space startup in talks with potential investors"). But the fans, who are set to protest against the Glazers again at Monday’s Premier League clash with old rivals Liverpool, are hoping for much more radical change than a new junior-partner owner. With the club not having won a title since Alex Ferguson retired as manager in 2013 and recently having lost all sense of direction, finishing sixth last term and losing their [opening two games of this season](https://www.financedigest.com/barclays-private-bank-opens-new-office-in-verbier-switzerland-for-2022-23-ski-season.html "Barclays Private Bank opens new office in Verbier, Switzerland for 2022/23 Ski Season"), there have been renewed calls for a change of ownership. After the opening day defeat at home to Brighton, former captain Gary Neville, an influential pundit on Sky Sports, said: “The [time has come for the Glazer family to sell](https://www.financedigest.com/best-selling-books-of-all-time.html "Best selling books of all time") the football club, the time has come, it’s now. Saturday’s 4-0 humiliation at Brentford led the [Manchester United](https://www.financedigest.com/finnish-businessman-zilliacus-ready-to-pay-premium-for-manchester-united.html "Finnish businessman Zilliacus ready to pay premium for Manchester United") Supporters Trust (MUST) to issue a statement saying: “MUST hold the owners of the Club primarily responsible for this new low in our decade of decline. In May, United reported a net loss of 27.7 [million pounds](https://www.financedigest.com/incentive-qas-expands-retail-portfolio-with-million-pound-shopping-centre-contract.html "Incentive QAS Expands Retail Portfolio With Million Pound Shopping Centre Contract") ($34.9 million) for the three months to March 31, compared with a loss of 18.1 million pounds a year earlier — numbers impacted by COVID restrictions. The club’s [shares have underperformed its European](https://www.financedigest.com/european-shares-end-higher-on-china-recovery-optimism.html "European shares end higher on China recovery optimism") listed rivals, losing more than a third of their value since 2018. Borussia Dortmund’s [stock has fallen about 27% while AFC Ajax has jumped](https://www.financedigest.com/dollar-jumps-u-s-stocks-buck-global-rally.html "Dollar jumps, U.S. stocks buck global rally") 27%. Ratcliffe’s statement of intent, following Elon Musk’s jokey Twitter [post about buying](https://www.financedigest.com/do-you-need-to-buy-guest-post-services-why.html " Do You Need to Buy Guest Post Services? why?") the club, will have potential buyers thinking. The recent sale of Chelsea, after [sanctions were imposed on Russian](https://www.financedigest.com/new-u-s-sanctions-for-russian-bank-oligarchs-crypto-miner-bitriver.html "New U.S. sanctions for Russian bank, oligarchs, crypto miner BitRiver") owner Roman Abramovich, showed there are no shortage of people with the resources and desire to own a top Premier League club. A consortium led by LA Dodgers part-owner Todd Boehly and backed by Clearlake [Capital won the race to buy the London](https://www.financedigest.com/london-the-capital-of-cyber-crime-in-the-uk.html "London: the capital of cyber crime in the UK") club, paying £2.5 billion and committing to spend a further £1.7 billion on it over the next decade. [PRICE TAGS](https://www.financedigest.com/looking-beyond-the-payments-price-tag.html "Looking beyond the payments price tag") If the Glazers were to consider selling, what would be the likely [asking price](https://www.financedigest.com/uk-home-asking-prices-rise-tax-cuts-to-spur-demand-rightmove.html "UK home asking prices rise, tax cuts to spur demand: Rightmove")? The Americans bought the club for 790 million pounds in 2005 in a highly leveraged [deal which has been criticised for loading debt](https://www.financedigest.com/analysis-no-china-no-deal-bid-to-break-sovereign-debt-logjams-gets-weary-thumbs-up.html "Analysis-No China, no deal: Bid to break sovereign debt logjams gets weary thumbs up") onto the club. United has been [listed on the New York Stock Exchange](https://www.financedigest.com/verasity-vra-lists-on-tier-1-cryptocurrency-exchange-crypto-com.html "Verasity $VRA Lists on Tier-1 Cryptocurrency Exchange Crypto.com") since 2012. The club are rated above Chelsea in most major rankings of club value. Forbes places United as the most valuable, at $4.6 billion, in England and the third in the world behind [Spanish giants](https://www.financedigest.com/spanish-toddler-dies-after-being-hit-by-giant-hailstone.html "Spanish toddler dies after being hit by giant hailstone") Real Madrid and Barcelona. Analysts say United’s ranking does not reflect their performance on the field or indeed their revenue position in recent years but rather their worldwide [following which makes them a genuine global brand](https://www.financedigest.com/10-million-to-be-whipped-into-ice-cream-brand-four-winters-following-acquisition.html " Million To Be Whipped Into Ice Cream Brand Four Winters Following Acquisition "). The key for Manchester United is the [impact of their digital footprint,” says](https://www.financedigest.com/stanchart-ceo-says-at1-bond-wipeout-has-profound-impact.html "StanChart CEO says AT1 bond wipeout has profound impact") football finance expert Rob Wilson of Sheffield Hallam University. It dwarfs all of the Premier League [teams and supports commercial](https://www.financedigest.com/tailify-bolsters-leadership-team-with-addition-of-julia-burton-brown-as-commercial-director.html "Tailify bolsters leadership team with addition of Julia Burton Brown as Commercial Director") revenue. Critically, that revenue is all ‘earned’ rather than [‘supported by owners’](https://www.financedigest.com/how-banks-will-evolve-to-support-small-business-owners.html "How banks will evolve to support small business owners"). That makes United highly valuable in enterprise terms,” he added. My personal view is that the scarcity of the asset (MUFC isn’t often for sale) means the [price will be much higher](https://www.financedigest.com/vhs-tapes-selling-for-46000-higher-than-original-price.html "VHS tapes selling for 46,000% higher than original price") than traditional valuations. I’m [expecting around](https://www.financedigest.com/around-40-of-german-companies-expect-output-decline-in-2023-iw-institute.html "Around 40% of German companies expect output decline in 2023 – IW institute") $6bn. If more than one bidder emerges, don’t be surprised to see upwards of $8bn,” he said. On top of that, future owners looking to revive United in English and [European football would face plenty more costs](https://www.financedigest.com/analysis-east-europeans-count-their-pennies-for-christmas-as-food-costs-soar.html "Analysis-East Europeans count their pennies for Christmas as food costs soar"). The [team needs](https://www.financedigest.com/why-finance-teams-need-to-go-beyond-numbers-to-an-active-relationship-with-data.html "Why finance teams need to go beyond numbers to an active relationship with data ") an overhaul, meaning investment in player recruitment, and the Glazers have been looking at upgrading or even rebuilding their Old Trafford Stadium. The Tottenham Hotspur Stadium, the newest build in the Premier League, [cost the London club around £1 billion](https://www.financedigest.com/australias-nuclear-submarine-plan-to-cost-up-to-245-billion-by-2055-defence-official.html "Australia’s nuclear submarine plan to cost up to 5 billion by 2055 -defence official"). It will take very deep pockets to persuade the Glazers to [sell – and even deeper ones to get United](https://www.financedigest.com/orban-tightens-hold-over-telco-sector-as-vodafone-sells-hungarian-unit-2.html "Orban tightens hold over telco sector as Vodafone sells Hungarian unit") back to the position of dominance they enjoyed in the 1990s. (Reporting by Simon Evans; Editing by Hugh Lawson) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---