The value of sports franchises has continued to shoot up, and it's showing again in what's expected to be a minority sale of one the world's most iconic teams.
A 25% stake of English Premier League soccer club Manchester United will be sold to Ineos CEO Jim Ratcliffe by the Glazer family for $1.5 billion, according to a report by Sky News on Dec. 4. The report said the two sides are expected to announce the deal early next week.
Related: NBA player contracts are skyrocketing — here's how high they can go
The two sides have been negotiating the deal for months, and a source told Reuters in October that the sale would put the valuation of the franchise at about $6.5 billion, although that does not include the team's net debt of about $600 million.
Manchester United (MANU) -) is publicly traded and has a market cap of $3.3 billion. Forbes projected the soccer club's value at $6 billion in September.
Ratcliffe outbid Qatar's Sheikh Jassim bin Hamad al Thani, who had bid $6 billion for 100% ownership of the soccer club.
Related: Dallas Mavericks will have a new owner - What we know about Mark Cuban's $3.5 billion deal
Sky News also reported that aside from 25% A-shares, Ratcliffe will also purchase 25% of the Glazer family's B-shares in the club which carry greater voting rights. According to a Wall Street Journal in October, the deal is expected to keep the Glazer's in charge of commercial business of the club while Ratcliffe manages team operations.
Ratcliffe is reportedly committing £245 million ($309 million) to enhance the team's infrastructure as part of the acquisition.
The Glazer family, which also owns the NFL's Tampa Bay Buccaneers, first acquired Manchester United in 2005, but started looking to sell the franchise in late 2022 fueled by years of poor performance from the prestigious club.
Tired of the investing maze? We’ve got the map. Thousands of stocks? Forget them. We zero in on the winners – and we’ll let you in on the secret. Our pros are sharing their top picks NOW. Missed out on the last one? Don’t make that mistake again. Join us today
