What have the owners of Manchester United FC said and why?
In an almost 300-word statement, Manchester United Football Club co-chairmen and directors Joel and Avram Glazer announced they are exploring new “strategic alternatives” with the ultimate goal of “positioning the club to capitalise on opportunities both on the pitch and commercially”.
Or, in simpler terms, they are looking for an investor to fund the team they can no longer afford to run sustainably.
The Glazers are the only Premier League owners to take dividends from their ownership, having taken £33.6 million from the club so far in 2022.
These payment were still taken despite Manchester United announcing losses of £115.15 million for the 2021-22 financial year, leading the disgruntled Manchester United Supporter’s Trust to say “there should be no rewards for failure”.
The Red Devils have lost their position as the ‘world’s richest team’ and are now third in the list of football teams with highest yearly revenues behind Real Madrid and Barcelona.
Alongside their financial woes, the Glazers are not blind to the fact the club is desperate for fresh investment.
In his shocking interview with Piers Morgan, the (now former) Man Utd number seven said: “I was surprised, in a bad way, in that way. I saw everything was the same. The progress was zero.”
Despite receiving widespread backlash about many of his comments, Ronaldo’s views on the club’s financial status are the hardest to question.
The Glazers did not spend £229 million of their own money on a summer shopping spree in the transfer market, as all signings were funded via the clubs self-generated revenue streams.
Off the field, Old Trafford Stadium is in desperate for a re-development that will cost up to £200 million, or, the alternative is a new ground will need to be built from scratch.
With interest rates skyrocketing, the Glazers cannot, and will not, borrow to invest in a project they no longer believe in.
Their favoured “strategic alternative” is to cash out, sooner rather than later.
Is there genuine excitement this may be the end of Glazer rule?
Before Manchester United fans can get themselves excited about a Glazer-less life, they must realise this may only be the beginning of an excruciatingly long end.
But according to Manchester Evening News Manchester United reporter Steven Railston, there is no doubt that there is genuine interest to buy the club from external investors.
He said: “There is genuine optimism about this opportunity to sell the club.
“There has been no shortage of interest this week, with investment from Facebook, Amazon, Apple and Dubai linked to Old Trafford, but most takeovers in the Premier League, like with Newcastle United last year, aren’t public knowledge until the multi-billion-pound deals are completed.”
United fans must however consider they are competing for new investors with England’s second-largest club, Liverpool Football Club. It’s unprecedented for England’s biggest clubs to be for sale at the same time.
The real question is whether the Glazers are genuinely ready to sell or are more interested in attracting a more minority shareholder.
Indicating that this is a good time for a sale, Railston said: “it does seem like a logical time for the American family to cash out, as they would make a mouthwatering profit and cut ties with a club that needs significant investment.
The Red Devil’s owners have also brought in the Raine Group, the US bank that aided Chelsea Football Club in finding an investor for their £4.25 billion takeover, which may be evidence to suggest they are serious about finding large investors.
How much would Manchester United cost, and who can afford to buy them?
The Glazers’ takeover of Manchester United 17 years ago cost them just £270 million, with another £520 million being leveraged against club’s assets.
If the Glazers were to sell today, it is rumoured that they are likely to walk away with what could be a fee close to ten billion dollars.
The aforementioned takeover of Chelsea by Todd Boehly’s consortium forwill also be crucial in any Manchester United sale, as the club have a yardstick with which to compare themselves.
Despite their poor financial year, United still reported revenues of £123 million higher than Chelsea for the same period.
Elon Musk’s tongue-in-cheek tweet that he would buy the club may been a joke, but the reality is an investor with the same level of capital at their disposal will be needed to complete the reported £3.7 billion takeover
The sum a purchase of United would command may also attract buyers from sovereign investment funds, similar to the £300 million purchase of Newcastle United in 2021, which may cause a moral dilemma for a large portion of the United fanbase.
Fan reaction to the news
It’s fair to say, the instant reaction from Manchester United fans, when the statement was released, was nothing short of ecstasy, with millions taking to social media to express their excitement.
FC United of Manchester, a fan-created team that were birthed out of opposition to Glazer ownership in 2005, released a statement.
It said: ‘Thousands of Reds fought against Malcolm Glazer’s hostile takeover in 2005 and his sons remain unwelcome today, so it’s good news they may finally be relinquishing their control of the club.
“We hope any potential new owners will treat Manchester United and the fans with the respect we all deserve.”
Their statement did, however, mention fan concerns that the club may fall into the hands of an owner with “dubious morals and ethics”.
Enes Ozmen, 20, expressed his worries about potential owners as a life-long season ticket holder.
He said: “Its not the case that I would take whoever could afford to buy the club. There needs to be a thorough process to make sure its the right people with the right intentions.
“We need to be careful what we wish for.”
Despite these concerns, some United fans are so desperate to rid their club of the Glazers they do not about the character of new owners.
John Butler, who runs a Manchester United supporter’s group in Greater Manchester, expressed that he would not care if someone with a bad humans rights record took over his club.
He said: “I couldn’t care less, and I would welcome them with open arms.
“I’d be glad to do anything to see the back of them (Glazers) to be honest.”
