15 Oct 2023 14:42:04
Assuming the news is true, that Ratcliffe is close to buying a 25% stake for £1.3bn, and assuming this is essentially a private sale of existing stock, then the Glazers will have established a debt laden value for the club of £5.2bn. A pretty amazing result for them. Of course, as has been noted, the fact that it's a simple sale of existing stock does absolutely nothing to change the balance sheet by bringing in new cash nor does It do anything to improve the profitability of the club. And, if the club continues to lose money and cannot reduce its debt, nor increase its short term financing, then it's difficult to see the Glazers restoring the dividend.

What we do not know is where the 25% is coming from. Is this a deal to release a large portion of non-executive Glazer siblings from their holdings? If so, Joel and Avram have done very well by them. The stock price remains at half of what Jim is purportedly paying so it would seem he's not been trying to buy up the open market shares. Not surprisingly. If he's forking out over £1.3bn for 25% he's going to want both protections and some say so, and the class of shares on the open market would offer him no voting rights.

So, if this comes to pass, where does it leave the club the day after? Financially, no better off. The Glazers currently hold about 69% of the capital. If they sell off a 25% of the whole, it would be reduced to 44%, Ratcliffe would have 25%, and 31% (powerless) elsewhere. I'm assuming a deal of this size would need to be reported in a timely fashion to the stock exchange. Let's wait and see. As they say, there's many a slip twixt cup and lip.

I'm not getting into my oft expressed extreme distaste for the Glazers, but if they have managed to garner a clear £1.3bn for 25% of something thy've basically paid nothing for, then one really has to tip ones hat to their business acumen. They get to retain a major interest in the club while hedging against future possible downturns by locking in some of their excessive profit.

1.) 15 Oct 2023
15 Oct 2023 15:32:12
In my opinion we’ll never see SJR owing a majority share in Manchester United. It’s been clear for sometime he’s wanted to increase his portfolio into football with failed bids for both Chelsea and Barcelona in recent years.

My reading of the situation is that he’s negotiated a position with the Glazers that will probably see him take control of the Sporting side of the business. I think he believes that by completing a strategic review, then formulating a coherent vision and philosophy, by appointing the correct people, improving recruitment and making better decisions he can bring more consistent and sustained success back to the football club. If the Club is consistently playing Champions League football and challenging for major honours again then it generates more money and creates opportunities for more revenue generation and sponsorship.

I envisage SRJ to be more open with supporters, to vocalise and champion his new sporting directive and be a regular presence at games.

I think we’ll hear reports that he fully intends to purchase a majority stake in the Club in the coming years but the devil is always in the detail which I expect will never be fully communicated and shared with supporters. Like I’ve already said, if the Glazers think the Club is going to significantly increase in value in the coming years then SJR will have to pay much more than the £5.2b they’ve just rejected from Qatar. If and how he finds this money remains to be seen.

The important questions I expect will go unanswered in a whirlwind of spin and propaganda, many supporters seduced by a new sporting project and philosophy.

What happens to the £1.2b? Will any of this money be re invested back into the Club?! What happens to the debt? What happens to the stadium, training facilities and infrastructure?! What money will be invested into the Club? Where will this come from? What are the details that will see SJR eventually take a majority share in the Club? When will this happen? What happens until then?

Of course this is merely speculation on my part and if SRJ did take control of sporting decisions I would imagine he’d still have to get consent from the Glazers to push through any major decisions. Having endured them for the past two decades we know exactly what they’re like and something tells me SRJ might not find them as compliant as he might hope once he enters the bear pit!

Let’s wait for the details but I’ve seen
nothing that suggests this is good for the future of Manchester United.

2.) 15 Oct 2023
15 Oct 2023 18:34:21
This is a terrible outcome. No money to pay off the debt. No money to invest in the infrastructure - without increasing our debt.

We just walked away from a deal where there was firm commitment to pay off the debt, get rid of the glazers and to invest serious money into the infrastructure if the club.

Only people who benefit from this deal are the glazers, who paid nothing at all to hold our club hostage for 20 years. Yay for the glazers. Woo hoo, said noone.

3.) 15 Oct 2023
15 Oct 2023 19:00:55
SJR is 71 in a few days, according to the Sunday times he has a personal fortune of around 29 billion -obviously he can't just go and get it from the cashpoint but why is everyone doubting he can find the funds to buy the club? If he blows 7 billion why does he care if he is down to his last 22 billion (plus pension and heating allowance) at 71 years old?

4.) 15 Oct 2023
15 Oct 2023 19:30:00
Not how it works boyfromburrenway. His stock is worth that amount, but if he started selling off huge chunks the price would fall like a stone. Unless there was a willing buyer to invest the money into what he was selling.

5.) 15 Oct 2023
15 Oct 2023 21:07:23
Shaw

Good post. I am waiting to see the detail and if the 25% are all glazer family Class B shares. He is only 12% away from having majority control.

Everything else and the scaremongering by various united channels is baseless stuff until we see the detail imo.

6.) 16 Oct 2023
16 Oct 2023 13:29:44
I have to agree with DodgyBanter. I cannot find or see anything positive in this.

7.) 16 Oct 2023
16 Oct 2023 14:56:23
If Sir Jim has options to buy the stock at an agreed price at a later date, then he could technically start investing in the clubs facilties. But with him assuming control of the football side of things, he'll be bringing in personal to hopefully improve things on the pitch.

If it is a waiting game and the facilities and debt can't be rectified until he has majority/ complete control, then we'll just have to wait.

I know we'd all like to be debt free with a promise to upgrade every inch of the club but unfortunately that's not the case.

The Glazers now get to sit back and watch someone else try and improve the club. If he fails, they sell at an agreed price. If he succeeds and the club becomes more valuable, the Galzers get more money.

Either way it's not the complete fresh start we all hoped for, but it may be a breath of fresh air if Jim can get the right people in making decisions that benefit the team first and foremost.

8.) 16 Oct 2023
16 Oct 2023 16:27:18
Another multi billionaire owner with a track record of having the teams he owns fire their coach nearly every year. Including the 2nd place OGC Nice last year, his teams only finished top 5 twice in 10 seasons (Plus 2 relegations) . I've no idea how anything good will come of this. Fingers crossed I suppose.

9.) 16 Oct 2023
16 Oct 2023 17:18:43
Inncass

So he has owned them for 4 years but is responsible for them finishing top 5 only twice in 10 years and being relegated when he had nothing to do with them.

He sacked their manager last year and now they are sitting in 2nd, having already beaten the first place team Monaco and 3rd place team Pgs and as off right now OGC nice is undefeated in the french league.

Before you post misinformation and inaccurate stuff do some research.

Last time nice played in Europe's top competition was in 1960. They have been a nothing club forever and he has actually brought in a structure, invested in the facilities, and build a team from a young group of players and a grass roots approach and has players like Thuram and Todibo who teams are looking to get including United, Liverpool etc etc

All the stuff people have criticized united for.

Needless to say buying a club in the summer of 2019 was probably the worst time to pick if you were going to buy a club with C.V. in Jan of 2020.