The proposed takeover of Manchester United has taken a fresh twist following confirmation that the former owners of AC Milan have submitted a bid for a minor stake that would see the Glazer family remain in charge at Old Trafford.
Elliott, who last year turned a handsome profit by selling the Serie A giants for €1.2bn to RedBird Capital, made an offer for an undefined amount of equity in the club before last night’s 9pm deadline, which ended up being extended after separate offers from Sheikh Jassim and Sir Jim Ratcliffe were not received.
Those bids are still going to be evaluated by Raine Group, the US bankers in charge of the process, and are the only two looking to buy the entire stake from the Glazers, who have an asking price of £6bn.
Sources have indicated that both the Qatari group and INEOS will make offers in the range of £5bn. It remains unclear whether the Glazers will accept that figure, which would double the record £2.5bn paid for Chelsea last season.
Indications are that at least four other groups have submitted offers for partial investments in the club - with Elliott among those. And that will go down as deeply concerning to United supporters desperate for the unpopular Glazers to sell their 69% stake.
The arrival of a minority investor would allow Joel and Avram Glazer to remain in control of the club their father purchased in a leveraged buyout 18 years ago. United currently have debts totalling more than half a billion and, despite signs of improvement under head coach Erik ten Hag this season, last won the Premier League a decade ago.
And while the club’s history and name maintains its status as one of the game’s biggest attractions, its core infrastructure, namely Old Trafford and their Carrington training ground, is in need of significant improvements.
Raine had been expected to spend the next week evaluating the bids before suggesting a preferred bid to the Glazers and United officials - but the new deadline has not been confirmed, fuelling further speculation that a takeover might not occur.
Elliott became Milan owners in the summer of 2018 when Li Yonghong defaulted on a £300m-plus debt to the hedge fund. They brought a first league title in 11 years before selling to RedBird at the beginning of the season.
The firm’s London-based managing partner Gordon Singer, who is the son of founder Paul, remains on the board at Milan having retained a minor financial interest.
Upon completing the sale to Red Bird, Gordon Singer said: “When Elliott acquired AC Milan in 2018, we inherited a club with a tremendous history, but with serious financial problems and a mediocre sporting performance.
“Our plan was simple: to create financial stability, and to return AC Milan to where it belongs in European football. Today, I believe we have accomplished both.”
Yet their arrival as minority stakeholders at United would make them deeply unpopular with supporters because it will solely be viewed as vehicle for the Glazers to remain as custodians.
Figures from Elliott, who initially indicated that they would help fund a potential bidder, received a tour of Old Trafford and Carrington last week.
