Qatar’s Sheikh Jassim in Negotiations for Exclusive Rights to Acquire Manchester United in $6 Billion-Plus Deal
Manchester United, the English football club, is currently in negotiations to grant exclusivity to a consortium led by Qatar’s Sheikh Jassim bin Hamad al-Thani in a potential sale worth more than $6 billion, according to sources familiar with the matter. This development marks a significant milestone in Sheikh Jassim’s efforts to acquire the iconic sports brand.
The Glazer family, who control Manchester United through a dual-class share structure and own minority stakes in the club, would be cashing out as part of the proposed deal, as revealed by one of the sources. The Glazers are reportedly more inclined towards the Qatari offer than a bid from British billionaire Jim Ratcliffe, the founder of chemicals producer INEOS. Ratcliffe’s bid allows for the Glazers to retain some interest in Manchester United.
During the exclusivity period, Manchester United would be prohibited from engaging in negotiations with any other potential buyer besides Sheikh Jassim. The duration of this exclusivity period remains undisclosed, and the sources cautioned that the situation is subject to change, with a new bid from Ratcliffe potentially disrupting Sheikh Jassim’s chances of securing exclusivity.
The sources requested anonymity due to the confidential nature of the matter. Representatives for Manchester United and Sheikh Jassim have not yet responded to requests for comment.
The news of the negotiations has caused a significant increase in Manchester United’s share value, with shares surging as much as 15% and trading up 10% at $25.53 in afternoon trading in New York on Thursday.
If the deal is successfully completed, it would be one of the largest in the sports world, following the similarly-sized sale of the National Football League’s Washington Commanders earlier this year. Furthermore, it would represent a substantial premium compared to other soccer deals. For instance, the acquisition of Chelsea Football Club for $3.1 billion last year valued the club at 5.7 times its last financial year’s revenue, whereas a sale for over $6 billion would value Manchester United at more than 10 times its annual revenue from the previous year, according to Refinitiv data.
Manchester United, a record 20-time English champion, boasts a global fan base of over 650 million, as reported by market research firm Kantar. A significant number of these fans have been calling for a change in ownership due to the club’s declining fortunes under the Glazers. While some supporters see a new Qatari owner as a means to bridge the gap between Manchester United and Manchester City, backed by Abu Dhabi, others have expressed deep concerns regarding Qatar’s human rights record.
Criticism has been directed at several Middle Eastern nations for their substantial investments in sports, with accusations of attempting to “sportswash” their image. Qatar, for instance, hosted the 2022 World Cup and owns Ligue 1 club Paris St Germain through its state-run Qatar Sport Investments (QSI). Saudi Arabia’s Public Investment Fund (PIF) finances the breakaway LIV Golf Series, which recently agreed to merge with the PGA Tour, and also holds a stake in Premier League team Newcastle United.
