The Qatari group led by Sheikh Jassim Bin Hamad J.J. Al Thani has withdrawn its bid to buy Manchester United, people familiar said, paving the way for British billionaire Jim Ratcliffe to gain control of the storied football club.
The Qataris had offered more than £5 billion ($6,1 billion) for all of team, much more than its current market value of $3.3 billion. The offer wasn’t enough to satisfy the demands of the club’s owners, the Glazer family, people familiar with their thinking said.
The transaction has been beset with delays, with bids failing to meet expectations of the selling Glazer family, splits among the owners about whether to sell and fears of litigation from minority shareholders. Ratcliffe recently revised his offer giving him the edge over the Qataris in a sale process that had dragged on for about a year.
Under terms being discussed, Ratcliffe could make an offer for some of the shares held by both the Glazers and minority investors in Manchester United, the people said. Ratcliffe may end up with an initial stake of roughly 25% in Manchester United in a deal that could value the club at more than £5 billion ($6.1 billion), they said.
An agreement would bring an end to the long-running battle for one of sport’s biggest prizes. Manchester United competes in the English Premier League and its rich history and sprawling global fan base mean it’s long been coveted by investors looking for a foothold in the world’s richest football league.
Ratcliffe’s proposal could give certain members of the Glazer family, including Joel and Avram Glazer, a chance to remain invested — at least in the short-term. That would likely infuriate some supporters of Manchester United, who have blamed its US owners for presiding over years of under-performance on the pitch and want them out of the club.
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The sale is being handled by bankers at US-based advisory firm Raine Group LLC. Representatives for Raine, Ratcliffe and Manchester United declined to comment. A spokesperson for the Qatari group said its offer for 100% of Manchester United was still on the table and represented the best solution for the club.
Ratcliffe put forward an initial proposal earlier this year to acquire 69% of shares in Manchester United owned by the Glazers. That left little benefit for holders of the club’s remaining stock. A top-three shareholder in Manchester United previously sent a letter to the club’s board warning that independent directors could be at risk of being sued for recommending any bid that favors one set of shareholders over another.
Manchester United is one of England’s most successful football clubs, boasting a record 13 Premier League titles. But its dominance of English football has shifted in recent years to crosstown rival Manchester City FC, which has won multiple honors since being taken over by Abu Dhabi investors in 2008.
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--With assistance from Susanne Barton.
