The potential sale of Manchester United is that bit closer after the deadline for bidding passed on Friday night with two interested parties officially coming forward.
The Red Devils have been American-owned for the best part of two decades - with that time period largely split into two halves. Fans have long had an issue with those at the top of the club, who managed to secure their ownership due to a leveraged buyout. However for long periods the success led by Sir Alex Ferguson covered the cracks.
His departure in 2013 has seen many of the issues highlighted however. The absence of the Glazers is an issue, whilst they've handed the day-to-day running of the club to individuals who, largely, lacked the experience to do so - namely Ed Woodward.
Success on the pitch has been scarce whilst a lack of investment in their infrastructure at Old Trafford and Carrington has been widely criticised. Several protests have been held and the Glazers recently announced that they were open to selling the club with parties from the UK, America, Saudi Arabia and Qatar touted as potential suitors.
Man Utd's statement
Back in November it emerged that the club were "commencing a process to explore strategic alternatives for the club." The Raine Group, who negotiated Chelsea's £4.25bn sale in the summer, are the company who are acting to United's behalf during the process.
United have said their move "is designed to enhance the club's future growth, with the ultimate goal of positioning the club to capitalise on opportunities both on the pitch and commercially. As part of this process, the Board will consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the company."
Avram Glazer and Joel Glazer have said in a joint statement: “The strength of Manchester United rests on the passion and loyalty of our global community of 1.1 billion fans and followers. As we seek to continue building on the Club’s history of success, the Board has authorized a thorough evaluation of strategic alternatives.
"We will evaluate all options to ensure that we best serve our fans and that Manchester United maximizes the significant growth opportunities available to the Club today and in the future. Throughout this process we will remain fully focused on serving the best interests of our fans, shareholders, and various stakeholders.”
Who's in the running?
Sir Jim Ratcliffe, owners of the company INEOS, and a United fan, is looking to spend his fortune on a football club. He part owns the Mercedes F1 team and is looking to further his sporting portfolio.
The Brit has received a recommendation from Gary Neville, who believes his understanding of the club and its traditions can only be advantageous. He said: “Jim Ratcliffe was born in Manchester and knows the area. If he wins it, I think there will be a lot of very happy Manchester United fans. He would want to do the right thing by the club - in fact I am sure that he would."
Sheikh Jassim bin Hamad Al Thani, the chairman of one of Qatar ’s biggest banks, has confirmed he will also enter the race.
Al Thani is the son of former Qatari prime minister Hamad bin Jassim bin Jaber Al Thani. The deadline for interested parties was 10pm on Friday night as the Raine Group, who are acting on behalf of the Premier League club, look to finalise their options.
Al Thani said in a statement: “Sheikh Jassim Bin Hamad Al Thani today confirmed his submission of a bid for 100 per cent of Manchester United Football Club. The bid plans to return the Club to its former glories both on and off the pitch, and – above all – will seek to place the fans at the heart of Manchester United Football Club once more.
"The bid will be completely debt free via Sheikh Jassim’s Nine Two Foundation, which will look to invest in the football teams, the training centre, the stadium and wider infrastructure, the fan experience and the communities the Club supports. The vision of the bid is for Manchester United Football Club to be renowned for footballing excellence, and regarded as the greatest football club in the world. More details of the bid will be released, when appropriate, if and when the bid process develops.”
There are concerns, notably from Premier League and Champions League, about whether a Qatar bid would create problems given the ownership at PSG. UEFA rules, known as the 'Integrity of the UEFA Club competitions, Independence of clubs'. It states that no two clubs, operating in the same competition, can be directly or indirectly controlled by the same ownership group.
Bidders from the United States and Saudi Arabia are also expected to come forward. Four of the traditional top six - United, Liverpool, Arsenal and Chelsea are now owned by firms or individuals from America.
Newcastle, who were purchased last season by Saudi's PIF (Public Investment Fund) have excelled due to their investment. The Telegraph has reported that multiple private groups in Riyadh have made formal inquiries to buy Man United.
Elon Musk has also talked about potentially entering the bidding. The Twitter CEO, who is worth more than £150bn, was believed to be monitoring the situation as he weighed up a potential bid.
What happens next?
Those who've come forward will now enter what is called a "data room", where potential buyers will be able to view the relevant financial information, according to the Manchester Evening News. At that point they will have to submit their bids, having been able to assess the club's finances and views their debts.
The Glazers have been willing to take dividends out of the club despite major money issues. Financial results for the year to June 30, 2022, saw net debt increase from £419.5million to £514.9million, a jump of 22.7%.
Ten Hag's take
United's recent resurgence is largely down to one man - Erik ten Hag. The Dutchman, who arrived from Ajax in the summer and has been backed financially, can end the club's trophy drought in the Carabao Cup. A return to the Champions League looks more than likely with the optimism.
Ten Hag has been kept in the loop regarding any potential - or part - sale he "focuses on football, they are focusing on other parts." Any investment into the Red Devils will create more capital, which can go into resources, both on and off the pitch.
The Glazers are thought to lack the finances to spend on the aspects of the club that need addressing, meaning they will need to find a cash injection if they want to remain at the helm. Ten Hag believes any investment can only be a good thing.
He said previously: “My information is that it will only be good things because there will be more investment possible. We spoke about the culture we want, we spoke about objectives, goals and the culture and he [Arnold] confirmed it won’t change, it will be even better because more money will become available for this project.”
Share price on the rise
United's share price has since skyrocketed since it emerged the club was up for sale. Throughout October and November United were priced at around 12 - 15 dollars. On November 22 the Premier League giants had one share valued at 13.1 dollars. 24 hours later it had shot up to 18.12 dollars.
Within a week of their sale announcement United had a share valued at 22.13 dollars and it has now peaked at more than 26 dollars. When the news came out regarding the Qatari bid, the share price again shot up. When that news was confirmed the price saw another notable rise.
The market believes that United will be sold, which underlines the interest and rises on the stock exchange. The Glazers want huge sums if they are to sell up and seem unwilling to negotiate down their asking price, which is thought to be around £5bn.
