Negotiations are underway between English football club Manchester United and a consortium led by Qatar's Sheikh Jassim bin Hamad al-Thani for an exclusive deal worth over $6 billion, according to sources familiar with the matter.
This development marks a significant milestone in Sheikh Jassim's efforts to acquire the iconic sports brand, as the son of Qatar's former prime minister and one of the wealthiest individuals in the Gulf state.
As part of the proposed deal, members of the Glazer family, who hold minority stakes in Manchester United and maintain control through a dual-class share structure, would be selling their shares. Sources indicate that the Glazers favour the Qatari offer over a bid from British billionaire Jim Ratcliffe, founder of INEOS, a chemicals producer. Ratcliffe's proposal suggests that the Glazers would retain some interest in the club.
During the exclusivity period, Manchester United would not be allowed to engage in negotiations with any other potential buyers apart from Sheikh Jassim. The duration of this exclusivity period remains undisclosed. However, the sources caution that the situation is subject to change, and a new bid from Ratcliffe could potentially impede Sheikh Jassim from securing exclusivity.
The sources, who requested anonymity due to the confidential nature of the matter, revealed that representatives of Manchester United and Sheikh Jassim did not provide immediate responses to requests for comments.
Upon the news, Manchester United's shares surged by up to 15%, trading at a 10% increase at $25.53 in New York on Thursday afternoon.
If the deal materialises, the $6 billion-plus valuation for Manchester United would rank among the largest ever in the sports industry, following the similarly-sized sale of the National Football League's Washington Commanders earlier this year. Furthermore, it would represent a substantial premium compared to other soccer transactions. Last year, the acquisition of Chelsea Football Club for $3.1 billion by an investment group led by Todd Boehly and Clearlake Capital valued the club at 5.7 times its previous financial year's revenue, whereas a sale exceeding $6 billion would value Manchester United at over 10 times its annual revenue based on Refinitiv data.
Manchester United, a record 20-time English champion, boasts a fanbase of over 650 million worldwide, according to market research firm Kantar. Many fans have been vocal about the need for a change in ownership due to the club's decline under the Glazers. While they won the League Cup under manager Erik Ten Hag this season, their third-place finish in the league, 14 points behind local rivals and treble winners Manchester City, highlights the significant turnaround required.
While some supporters see the deep pockets of a potential Qatari owner as a means to bridge the gap between Manchester United and Abu Dhabi-backed Manchester City, others express concerns about Qatar's human rights record. Several Middle Eastern nations have faced criticism for using sports investments to improve their public image, a practice known as "sportswashing." Qatar, for example, hosted the 2022 World Cup and owns Ligue 1 club Paris St Germain through Qatar Sports Investments (QSI).
Saudi Arabia's Public Investment Fund (PIF) is involved in various sports ventures, including the breakaway LIV Golf Series and Premier League team Newcastle United, following a recent merger with the PGA Tour.