Club Sale | It’s done!

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cyberman

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I work with public M&A and have a few thoughts on what is going on here, that I think are indisputable:

*”As part of this process, the Board will consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the Company.

What does this means?
(a) Look, the board has a fiduciary duty to act in the way that is best for all shareholders. If there is a sale of the club, there will be litigation in the US. If they sold the shares of the club — and someone sues them saying ‘you lost us money by not selling off the assets instead’, the board will be deemed negligible if it can’t show that they acted “with the care that an ordinarily prudent person in a like position would exercise under similar circumstances”. That includes not just ruling out options without looking into them.

I.e. it is perfectly possible that they are looking to sell 100% of close to 100% of the shares.

This is what the entire first half of the PR is about:
“We will evaluate all options … Throughout this process we will remain fully focused on serving the best interests of our fans, shareholders, and various stakeholders.”

(b) We are dealing with the Glazers here, they won’t waste money if they don’t have to.

If the Glazers want to explore selling their shares and hence wants to sign top financial and legal advisors — who pays the retainer? The Glazsers can’t ask the financial advisor to send the bill to the Club.

With this mission for the financial advisor, they are acting on behalf of the club and Glazers won’t be picking up the bill.

*Could the new buyer be worse than the Glazers?

I don’t know the answer to that, of course. But it’s not 2005 anymore, where football clubs weren’t seen as investments and the sale of our club to the Glazers was perhaps not handled properly.

What I do know is this — the offers to buy the club will 100% be established against the background of what a buyer think can be justified against economical data or other concerns. Since there of course will be plenty of interested buyers, as a result, the highest bid will come from the buyer who sees the brightest future for Manchester United financially, which in its turn can motivate the highest price tag. At worst. There could of course always come in a buyer looking for an alibi, expensive toy or whatever.

The Glazers brought a club that — from a financial POV — was ‘decline proof’ for what a decade and a half. We are United, one of the the biggest club in the world. But this will not continue if the club remains outside all real competitions for titles for another 17 years or whatever. Slowly but surely our position in the football world is eroding. And it can get a lot worse fast. Under the Glazers, we haven’t contended for the title really, but we been in and out of the Champions league, been the runner up for the title and so forth. There is no guarantee that we will become a CL team over the coming 10 years.

Hence, our club — for a new buyer — is anything but decline proof. This buyer could 100% buy one of the biggest clubs in the world and in 15 years time he looking to sell a mediocre PL team with a great history.

As a consequence, I personally think it’s very very likely that a new buyer will be looking to invest in the club. I just cannot imagine a scenario where a buyer — who will be the one entity that sees the brightest future for the team — will be someone who won’t look to invest in the club.

*What is the time frame?

The market is very very sour right now. There are no guarantees for any deal to get made fast.

For the Glazers to sell of their holdings of shares in United — it could be done fast. Could take a month. But that does not include a proper vendor auction process. It’s someone calling them up asking for a number, being given one, and then acting on it instantly.

A more likely scenario is Q1 2023. I think that is what they are aiming for. Q2 2023 could also be an option.
Good points but we did contend for titles under the Glazers. Won multiple of them plus a CL.
 

golden_blunder

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My god, people are STILL promoting this Elon Musk fantasy? After he's shown the world his whole backside over this Twitter fiasco?

This is a 51 year old man-child with the mentality of a 15 year old boy, who's fickle and changeable in the worst way for a boss to be, and whose "wealth" is entirely tied up in the stock prices of companies he's actively tanking.
I want him nowhere near the club, he’s bonkers
 

Messier1994

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Good points but we did contend for titles under the Glazers. Won multiple of them plus a CL.
Thanks, of course, I am just on a few hours of sleep, mixed up the non-SAF era with the Glazer’s era. The point of course still stands.
 

KiD MoYeS

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Elon Musk needs to be a banned term in this thread. Discuss him in current events forum, he obviously isn't a potential buyer.
 

IRONTUSK

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Fantastic news but probably like other`s apprehensive as the grass is not always greener.
We don`t necessarily need owners who have experience running a club, we just need owners who can get the right people in to do the job (it`s worked at City & Liverpool)
I`d be very surprised if it`s not a buyer from the middle east though.
 

GDaly95

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And knowing the F.A. they'll breaking with their new found policy of "fit & proper" where Chelsea were concerned, and accept a U.S. backed, leveraged, offer.
I think I'm right in saying that there's a clause against this now. I think it might actually be called the anti-Glazer clause which is funny and cruel at the same time.
 

Telsim

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Some insider trading going on apparently? Could be indicative of an actual intent to sell? I won't believe it until I see it.
 

AneRu

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Each of the Glazers have amended their ownership forms with the SEC to include this:

Strategic Process



"On November 22, 2022, the Issuer announced that the Issuer’s board of directors (the “Board”) was commencing a process to explore strategic alternatives, including, new investments into the Issuer, or a sale, merger, or other transaction involving the Issuer (the “Strategic Process”).



As part of the Strategic Process, the Reporting Persons intend to engage in discussions with third-parties, management, the Board, other representatives of the Issuer, and/or with other holders of securities of the Issuer. In connection with these discussions, the Reporting Persons, including Mr. Glazer in his position as a member of the Board, may suggest, take a position regarding, or participate in, a variety of matters relating to the Strategic Process, which may include, among other things, suggesting changes to the Issuer’s operations, management, corporate governance, capital structure, and control, as well as other alternatives that relate to or would result in: an extraordinary corporate transactions, such as a merger, tender-offer, take-private, or other transaction that could result in the delisting or deregistration of the Class A ordinary shares; changes to the capitalization or dividend policy of the Issuer; or other material changes to the Issuer’s business or corporate structure, including changes to the Issuer’s charter or bylaws or changes in management or the composition of the Board.



To facilitate their consideration of such matters, the Reporting Persons, in their individual capacity, intend to retain consultants and advisors and may enter into discussions with potential sources of capital and other third parties. The Reporting Persons may exchange information with any such persons pursuant to appropriate confidentiality or similar agreements. The Reporting Persons will likely take some or all of the foregoing steps at preliminary stages in their consideration of various possible courses of action before forming any intention to pursue any particular plan or direction.



As a result of these considerations or as a result of the Strategic Process, the Reporting Persons may, from time to time and at any time, (a) acquire additional securities of the Issuer in open market transactions, privately negotiated transactions, through a tender offer or otherwise, or (b) dispose of any or all of their securities of the Issuer in open market transactions, privately negotiated transactions, in connection with an extraordinary corporate transaction, or otherwise."

This has a lot more flesh on the bones than earlier releases, basically ruling nothing in or out.
You are right, they are selling up and I'd assume they are fairly advanced in the process and most likely doing this now to kickstart a bidding war
 

OldSchoolManc

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The main problem United have here, is that Glazers won’t care who they sell to as long as they get top dollar.
I couldn’t support an oil team so I hope it’s someone like Ratcliffe
 

Rightnr

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The main problem United have here, is that Glazers won’t care who they sell to as long as they get top dollar.
I couldn’t support an oil team so I hope it’s someone like Ratcliffe
Our saving grace could be the errors the PL has learned from the Glazers' own tenure and the recent sale of Chelsea indicates as much.

It would be deliciously ironic if the rats couldn't make the biggest profit because of their very own mismanagement of the club.
 

Slysi17

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The main problem United have here, is that Glazers won’t care who they sell to as long as they get top dollar.
I couldn’t support an oil team so I hope it’s someone like Ratcliffe
Oil bidders will bid top dollar though and the most too. So it will probably happen.
 

TheNewEra

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It would not be surprising at all if Musk bought United. And, for me at least, he'd be quite the upgrade. He's not my preference, obviously.
He isn't buying it.

He joked in the summer because obviously the Glazers were trying to sell to rich circles
 

Lentwood

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This has been on the cards for a while hasn't it.

The idea that Manchester United was a 'cash cow' for the Glazers was and has always been a huge myth.

Due to gross mismanagement resulting in outrageous amounts of money wasted on dud transfers and in wages paid to undeserving players, the club has been just about breaking-even financially.

The dividends the Glazer family took were a total Red Herring. It creates good clickbait because it causes outrage amongst fans who don't really understand the numbers involved but the money take was such an insignificant amount in the grand scheme of things it was always a total non-story. When you consider the opportunity cost of the Glazers having their cash tied-up in United (i.e. the cost of the options they haven't chosen) then it's actually a massive loser for them.

Sure, huge amounts of money have been drained out of the club, but most of it has been paid to the investment banks who loaned the Glazer family the money to buy the club. Incredible waste and incredibly frustrating for fans...but again, not something the Glazers profited from directly. We often see that £2BN figure banded about by the Green & Gold campaign but it needs to be understood....the Glazers haven't taken that and banked it, it's been spent paying interest!

So with the club not really generating profit (after transfers etc...), the stadium crumbling, the facilities requiring major investment, oil money clubs making it increasingly difficult to secure top four, the ESL on the back-burner for now...the only real way for the Glazers to make big money on United is to sell.

Of course, when they do sell, they'll have made a huge profit without spending a penny of their own money and despite grossly mis-managing their asset....but that's the World we live in people! The system is rigged and the wealthy are too big to fail!
 

Josh 76

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Fantastic news but probably like other`s apprehensive as the grass is not always greener.
We don`t necessarily need owners who have experience running a club, we just need owners who can get the right people in to do the job (it`s worked at City & Liverpool)
I`d be very surprised if it`s not a buyer from the middle east though.
The Qataris are looking to buy a PL club. Question will be, will it be Utd or Liverpool ?
 

Telsim

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they've literally made a statement of their intent to sell
Sorry, I don't make a habit of believing anything they say. Even now I don't believe they will sell the club. Probably a minority share or some other scheme outlined in that press release. I just can't imagine them selling the club entirely.
 

Tarrou

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Sorry, I don't make a habit of believing anything they say. Even now I don't believe they will sell the club. Probably a minority share or some other scheme outlined in that press release. I just can't imagine them selling the club entirely.
I don't trust them either. But it's a public company, so there are very strict rules around this sort of thing.

Also, there is no obvious reason to do this (and break SEC rules) unless they actually want to sell.

The chance of them getting additional investment and keeping control and virtually zero, that much is clear.
 

Slysi17

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The Qataris are looking to buy a PL club. Question will be, will it be Utd or Liverpool ?
Is that even possible. Can Qatar or someone own 2 football clubs. PSG and Manchester United will both play in the champions league potentially.
 

Abizzz

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Can't we trick him into thinking some court is forcing him to buy now?

Buy or pay 1 billion or something.
 

OverratedOpinion

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Is it just a coincidence that this announcement has come so recently after Ratcliffe said he wants to buy United?
I believe so.

If they were targeting a specific buyer then surely they would just contact him directly via intermediaries. Also a willing buyer or consortium has probably never been a concern to them.

I imagine seeing how much the Denver Broncos who are a relatively small name in comparison sold for has potentially struck a chord with them.
 

Rightnr

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Just in case anyone is in doubt this has been in the works for ages. Plenty of insiders made proper bucks.

 

Igor Drefljak

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I know absolutely nothing about U.A.E and particularly Dubai.
Are they just as bad as the rest of them?

Dubai for me just seemed like a random place that shot to fame about 15 years ago and seemed like a new business hub of the world :lol:
 

downxandxout

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I work with public M&A and have a few thoughts on what is going on here, that I think are indisputable:

*”As part of this process, the Board will consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the Company.

What does this means?
(a) Look, the board has a fiduciary duty to act in the way that is best for all shareholders. If there is a sale of the club, there will be litigation in the US. If they sold the shares of the club — and someone sues them saying ‘you lost us money by not selling off the assets instead’, the board will be deemed negligible if it can’t show that they acted “with the care that an ordinarily prudent person in a like position would exercise under similar circumstances”. That includes not just ruling out options without looking into them.

I.e. it is perfectly possible that they are looking to sell 100% of close to 100% of the shares.

This is what the entire first half of the PR is about:
“We will evaluate all options … Throughout this process we will remain fully focused on serving the best interests of our fans, shareholders, and various stakeholders.”

(b) We are dealing with the Glazers here, they won’t waste money if they don’t have to.

If the Glazers want to explore selling their shares and hence wants to sign top financial and legal advisors — who pays the retainer? The Glazsers can’t ask the financial advisor to send the bill to the Club.

With this mission for the financial advisor, they are acting on behalf of the club and Glazers won’t be picking up the bill.

*Could the new buyer be worse than the Glazers?

I don’t know the answer to that, of course. But it’s not 2005 anymore, where football clubs weren’t seen as investments and the sale of our club to the Glazers was perhaps not handled properly.

What I do know is this — the offers to buy the club will 100% be established against the background of what a buyer think can be justified against economical data or other concerns. Since there of course will be plenty of interested buyers, as a result, the highest bid will come from the buyer who sees the brightest future for Manchester United financially, which in its turn can motivate the highest price tag. At worst. There could of course always come in a buyer looking for an alibi, expensive toy or whatever.

The Glazers brought a club that — from a financial POV — was ‘decline proof’ for what a decade and a half. We are United, one of the the biggest club in the world. But this will not continue if the club remains outside all real competitions for titles for another 17 years or whatever. Slowly but surely our position in the football world is eroding. And it can get a lot worse fast. Under the Glazers, we haven’t contended for the title [since SAF left] really, but we been in and out of the Champions league, been the runner up for the title and so forth. There is no guarantee that we will become a CL team over the coming 10 years.

Hence, our club — for a new buyer — is anything but decline proof. This buyer could 100% buy one of the biggest clubs in the world and in 15 years time he looking to sell a mediocre PL team with a great history.

As a consequence, I personally think it’s very very likely that a new buyer will be looking to invest in the club. I just cannot imagine a scenario where a buyer — who will be the one entity that sees the brightest future for the team — will be someone who won’t look to invest in the club.

*What is the time frame?

The market is very very sour right now. There are no guarantees for any deal to get made fast.

For the Glazers to sell of their holdings of shares in United — it could be done fast. Could take a month. But that does not include a proper vendor auction process. It’s someone calling them up asking for a number, being given one, and then acting on it instantly.

A more likely scenario is Q1 2023. I think that is what they are aiming for. Q2 2023 could also be an option.
Great post. Thanks for taking the time to share.
 

Sushi Kagawa

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I know absolutely nothing about U.A.E and particularly Dubai.
Are they just as bad as the rest of them?

Dubai for me just seemed like a random place that shot to fame about 15 years ago and seemed like a new business hub of the world :lol:

Dubai wouldn't be as rich as the other owners as they don't have oil but still rich enough to sort us out
 
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