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Talks to buy Man Utd has begun, with a consortium of Qatari Royals buckling up for the deal.
Manchester United, one of the most iconic football clubs in the world, is currently up for sale, and potential buyers are stepping forward. Two contenders, Sheikh Jassim bin Hamad Al Thani, and INEOS have confirmed their interest in buying the club. The potential sale is being handled by U.S. merchant bank Raine Group, which is overseeing what could be the biggest-ever sale of a sports team.
Representatives of Sheikh Jassim bin Hamad Al Thani, the chairman of Qatar Islamic Bank and son of a former Qatari prime minister, visited Old Trafford stadium and Carrington training base on Thursday as part of a series of meetings with bidders hoping to buy out the current owner, the Glazer family. INEOS owner Jim Ratcliffe is set to tour United on Friday.
Sheikh Jassim aims to take 100% ownership of the club, while Ratcliffe has submitted a bid for majority ownership. Other contenders have not yet declared their interest in buying United. The bidding process is still underway, and it remains to be seen how high the bidding will go, with estimates of up to $6 billion being reported.
The Glazers, who also own the Tampa Bay Buccaneers, declared their willingness to sell United in November as they considered “strategic alternatives.” Numerous protests have resulted from the dissatisfaction of many club supporters with the Glazers’ ownership. Consequently, many supporters hope that a change in ownership will usher in a new era of success for the club.
Prospective new owners of United would likely need to invest extensively in the stadium, which could include a rebuild at an estimated cost of around $1 billion. The tours held this week should provide buyers with additional information regarding the amount of their subsequent bids, which could be made within the next ten days.
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It has been reported that Sheikh Jassim plans to “invest in the football teams, the training centre, the stadium, and wider infrastructure.” His offer won’t have any lingering financial obligations either. According to Ratcliffe, the club’s priority is winning the Champions League and he plans to do so by taking a fan-centered approach to ownership. For United fans who have watched Manchester City and Liverpool dominate English football in recent years, the statements from both bidders will ring true.
Qatari ownership could put City on par with Abu Dhabi-backed City and Paris Saint-Germain, which is also owned by Qatar. Billionaire Ratcliffe, a United fan since childhood, is one of Britain’s richest. United fan Sheikh Jassim.
There is a good chance that the buyer will look at what the club can become, as opposed to what it is today. United has an older stadium and a fan base that has not always been on the best terms with the Glazers. If the new owners could engage the fanbase, get a new stadium, and secure more sponsorship, they could change the revenue model dramatically, which would increase the value of the business.
According to British businessman Martin Broughton, the enormous fanbase of Manchester United presents an opportunity for the Glazer family, the club’s current owners, to increase the team’s value. Broughton, who previously fronted a consortium that attempted to buy Chelsea, believes that United has the potential to tap into a market currently dominated by technology giants like Google, Facebook, and Instagram.
Broughton suggests that if United were able to successfully tap into this market, it could significantly change the valuation of the club, potentially increasing it to as much as 6 billion pounds. However, he notes that this would not be an easy feat to accomplish.
Broughton’s comments reflect a growing trend among sports teams and organizations, as they increasingly explore ways to monetize their massive fanbases. In recent years, social media and other digital platforms have emerged as key tools for engaging with fans and driving revenue growth.
Broughton’s remarks highlight the enormous potential for sports organizations to leverage digital platforms and technologies to drive growth and increase their value. Whether or not the Glazer family chooses to pursue this opportunity remains to be seen, but the potential for growth and profitability in this area is significant.
