Sheikh Jassim bin Hamad Al Thani and his team’s negotiations to acquire Manchester United hit a roadblock as they repeatedly failed to provide proof of funding during the process. Documents submitted to the United States Securities and Exchange Commission (SEC) revealed that Sheikh Jassim did not present the necessary “customary financing commitment letters” during talks that spanned from February 2023 to October 2023. This lack of financial documentation raised concerns and ultimately led to his withdrawal from the bidding process.
Ratcliffe’s Successful Bid
In contrast to Sheikh Jassim’s unsuccessful attempt, British billionaire Sir Jim Ratcliffe successfully reached an agreement to acquire a 25% stake in Manchester United for £1.3 billion ($1.65bn). This deal came more than a year after the team’s owners, the Glazer family, announced their intention to undergo a “strategic review” in November 2022. The SEC filings indicated that Raine, the merchant bank managing the sale, initially engaged in talks with 26 interested parties before Ratcliffe’s bid emerged as the most viable option.
Sheikh Jassim’s Frustration
Sources close to Sheikh Jassim’s bid disclosed that the Qatari businessman expressed “frustration” with the Glazers’ valuation of the club, deeming it “unrealistic.” Sheikh Jassim had proposed a bid for 100% ownership of Manchester United, but the documents revealed that Ratcliffe opted for a minority shareholding approach in the summer of 2023. This shift in strategy proved to be more favorable in securing the deal, as Ratcliffe and his INEOS team are now poised to take over football operations once the acquisition is finalized.
Ratcliffe’s agreement to purchase a stake in Manchester United comes with certain stipulations. While he will have control over football operations, the Glazers retain majority ownership and can compel Ratcliffe to sell his shares if a new buyer emerges within an 18-month period. Additionally, Ratcliffe will have the first right of refusal should the Glazers decide to offload more shares in the future. This dynamic will shape the governance structure of the club moving forward.
Amidst these ownership changes, Manchester United has also entered into a partnership with Manchester Metropolitan University’s Institute of Sport. This collaboration will provide the club with access to research studies aimed at enhancing the performance of their men’s, women’s, and academy teams. By leveraging academic resources, United aims to elevate their sporting capabilities and maintain a competitive edge in the ever-evolving landscape of professional football.
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