![]() They signed Cristiano Ronaldo in the last summer transfer window, but even that was not enough, and they are set to end the 2021-22 season without a single trophy. Since Fergie left in 2013, Manchester United has won just one FA Cup, one EFL Cup, and one Europa League. The Red Devils are far removed from their glory days under legendary manager Sir Alex Ferguson. Potential buyers will need to convince fans they care about football too.Ĭhris Hughes is a Bloomberg Opinion columnist covering deals.Manchester United is in the midst of another poor season. While Manchester United is a business, it’s much more than just a financial asset. A commercially successful club is also one that should and can afford to invest in the sport. But their goal should be to carry the Old Trafford crowd with them. However, new owners will almost certainly also want to run Manchester United as a brand too. Crosstown rival Manchester City has dominated the sport in recent years, leaving Manchester United supporters relying on their memories of glory days gone by. That could at least generate a high comparative figure for pricing a Liverpool auction, and allow more time for global debt markets to recover.įootball legend Cristiano Ronaldo parted company with Manchester United this week after criticizing the Glazers for not caring about what happens on the pitch and running it like a marketing club. On balance, it may be better to let the Manchester United transaction happen first. John Henry’s Fenway appears to have a choice: rush through a Liverpool deal now or wait for its rival to sell. It risks sucking away potential demand, and financing capacity, from its own auction. For the US-based Fenway Sports Group Holdings, which recently hoisted a for-sale sign above Liverpool Football Club, the Glazers’ announcement of a possible sale cannot be good news. Football is gaining popularity in the US. Expanding and monetizing Manchester United’s global fan base is likely to be the bedrock of the investment case, not least as the EPL gains traction with US television audiences. While Manchester United is already a revenue machine, one of the EPL’s most impressive, with annual sales averaging around $740 million over the last five years, its commercial potential may be far from fully realized.Ĭonsider the broader potential, It has the biggest digital footprint of any EPL club, as Rob Wilson of Sheffield Hallam University points out. And it remains possible that the Glazers choose to retain control while bringing in an investment partner to inject funds. Commercial partners could bring expertise in marketing and stadium redevelopment, with the latter likely to cost in the region of £1 billion. Some combination of wealthy individuals and private equity money makes most sense in terms of a buyer that would be both palatable to the crowd and able to pay what the Glazers are after.Įven with a consortium ready to buy a controlling stake in Manchester United, an offer would surely rely on a good chunk of debt financing. There was, after all, strong pushback against the possibility of buyout firm Apollo Global Management buying a stake earlier this year. The club’s fans will care who it sells to. ![]() But Manchester United is a unique asset and would likely fetch a trophy price whenever it changed hands. The terms-£2.5 billion for the club plus a £1.8 billion investment commitment-set a benchmark. ![]() The forced sale of London rival Chelsea Football Club earlier this year set the scene for wave of potential deals.
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