January 19 News Matt Dickinson, a well-known Times reporter who clearly has a personal relationship with Ineos
Updated exclusive column to answer some questions about whether Ineos could buy Manchester United.
Will Manchester United be sold?
Bank of Wren, the commercial bank hired by the Glazer family, is understood to be overseeing the sale of the club (which could be a partial stake or the entire business), having been in contact with groups from the Middle East, the US and Asia.
Valuation is an obvious issue despite United’s appeal, with Rennes Bank believing United could attract more than £5bn, double what Burleigh Clear Lakes paid for Chelsea last year.
The world record for any sports franchise is the $4.65 billion (£3.77 billion) paid for the NFL’s Denver Broncos in 2022.
According to Deloitte, United’s £689m revenue puts them fourth in global football (behind Manchester City, Real Madrid and Liverpool), but the club has long been a financial monster – a profitable football club –
— and there is no sign of the Premier League bubble bursting.
United’s listing on the New York Stock Exchange was valued at a record $4.8bn (£3.7bn) in 2018 but is now closer to $3.75bn, up slightly yesterday after Ratcliffe confirmed his interest.
Does Ratcliffe have the money to buy it?
In 1998, he founded petrochemical giant INEOS with two friends, of which he owns 60%.
His personal wealth is estimated to be between £6 billion and £11 billion.
INEOS has annual sales of around £53 billion and employs more than 26,000 people in 29 countries.
There are personal and professional reasons for Ratcliffe’s interest in Manchester United.
He was born in Falsworth and Manchester United was the team he supported in his youth.
In 1999, he watched the Champions League final as the club clinched the treble, the pinnacle in the club’s history.
“Those three minutes you never forget in your life,” he said.
But there has also been a massive shift in Ineos’ image and how they use sports, so the chemicals and energy company is no longer the “biggest company in the world you’ve never heard of” as Ratcliffe once said.
With its retail business, INEOS has been promoting its brand through sports in recent years.
Who will manage Manchester United?
An interesting recent appointment is the hiring of Jean-Claude Blanc as chief executive of Ineos’ sports division.
Blanco spent more than a decade as chief operating officer at PSG, which transformed the club into one of the richest and most powerful in the world thanks to the Qatari takeover.
He previously served as chairman and CEO at Juventus.
Ineos stated that in view of the extensive interests of the Mercedes Formula One team, the American Yacht, cycling, rugby, Nice Football Club and other projects, Blanco’s joining is not directly related to the acquisition of Manchester United, but it does not rule out management.
possibility.
Sir Dave Brailsford is also a key figure in Ineos’ sports department, who is mainly responsible for Nice-related business.
Is Ratcliffe a favorite?
Avram Glazer – one of six Glazer siblings who own about 75 per cent of the club – was in Qatar to watch the World Cup, seemingly to make contact with potential investors.
Ratcliffe, 70, who lives most of his life in Monaco, has previously said he does not want to be “dumb money” in football, squandering wealth like many bosses do.
Although he was willing to pay the asking price for Chelsea last year, he does not have the bottomless money of a sovereign fund, though state-backed bids for Saudi Arabia, Qatar and Abu Dhabi are due to their current status at Newcastle United, Paris Saint-Germain and Manchester City respectively.
Complicated with interests.
Ratcliffe held talks with Joel and Avram Glazer last year, but the details of the United bid had not yet been clarified by Wren Bank.
When is Manchester United selling?
Any sale of a stake in the club or the entire club would have to be approved by the Glazer siblings, a process that is complicated even if they are certainly well-pocketed.
Since the leveraged buyout of Manchester United at a price of about 800 million pounds in 2005, the Glazer family has received a large amount of dividends, used profits to pay loan interest, and their assets have grown significantly. At the same time, they have experienced many protests, including May 2021.
Protest over the postponement of the game against Liverpool.
Fans want the Glazers gone, but they’re under no obligation to sell, in other words they’re up for grabs.
Interested parties must be registered with Rennes Bank to be able to view United’s financial statements and carry out due diligence.
But before bidding begins – which is expected to begin next month – a source close to the process believes it is too early to say whether the club will sell before the end of the season.