Reports surfaced earlier in the week that the Glazer family will seek new investors in Manchester United. This could potentially be a complete sale of the club to the highest bidder. However, determining how much the Glazers could gain from the deal is difficult to answer.
Avram and Joel Glazer previously issued a statement about the possible sale emphasizing United’s fan base. “Manchester United’s strength rests on the passion and loyalty of our global community of 1.1 billion fans and supporters,” the Glazers said.
“As we look to continue to build on the club’s success story, the board has authorized a comprehensive evaluation of strategic alternatives,” the statement continued. “We will evaluate all options to ensure we best serve our fans and that Manchester United maximizes the significant growth opportunities available to the club today and in the future.”
Glazers target record sale fee for Man United
Since the declaration, there have been reports that the family is seeking around $7.25 billion to sell United. This would crush the fee that Todd Boehly and his associates paid for Chelsea earlier this year. The American businessman reportedly spent around $3 billion when they bought Chelsea from Roman Abramovich.
Although United will almost certainly cost more than Chelsea, it could be hard for the Glazers to get $7bn. United shares hit $21.50 on Friday, bringing a total value of about $3.5 billion. This figure would rise to about 4,000 million dollars if debts are included.
Jim O’Neill, former chief economist at Goldman Sachs, says that a valuation between these figures would seem correct. “I don’t understand why United is worth so much more than $3.6 billion given everything we know, including the money needed to rebuild,” O’Neill told the Financial Times. The businessman also previously tried to buy the team.
Fan base does not equate to high income
There is no mistaking the United brand. They currently have one of the largest fan bases in the world. It has been claimed that only Barcelona and Spain’s Real Madrid have more fans globally. However, turning a large number of fans into revenue is not always easy.
United’s annual revenue has declined since the 2018/19 campaign. The club also currently has a shirt sponsor who wants to renegotiate the terms of the contract. Old Trafford is also in need of a facelift. These issues, coupled with the clear need to invest serious funds in new players, could make potential buyers balk at the club’s high price.
However, there will be plenty of suitors lined up to inquire about the United purchase. It is clearly a once in a lifetime opportunity. However, it looks like the Glazers will have to settle for less money than expected in a Man United sale.
PHOTO: IMAGO / ZUMA Wire
