An historic Premier League rivalry and English football royalty, Manchester United and Liverpool, are simultaneously open to offers from potential buyers. Goldmann Sachs and Morgan Stanley were asked to gauge interest around a possible sale by Reds owners Fenway Sports Group earlier this month.
The Glazer family are open to selling up as United plans to identify “strategic alternatives” and said the process will consider a number of options “including new investment into the club, a sale, or other transactions involving the company”. The sales are in large part sparked by the £4.25bn (R87,13 tln) takeover of Chelsea.
Beyond financial circles believing this is prime time to be on the market, the increasing costs of having to compete with state-powered clubs on and off the pitch has also been significant.
It was United and Liverpool who pushed for the European Super League, which would have cap transfer fees and wages at a certain percentage of revenue to ‘level the playing field’ among clubs with unlimited resources. A sale is viewed as the best way to maximize the return on investment when the ESL is absent, as it ensures ballooning income.In addition to interest rate risk, United are also worried about fan protests and overwhelming dissatisfaction with their ownership. Moreover, the clubs are taking account of the bleak global economic forecasts for the future.
First and foremost, there is likely to be interest from the USA, as many private equity companies feel that the Premier League is undervalued. There may be added interest in acquiring the clubs if the World Cup is successful in the Middle East. It is rumored that Jim Ratcliffe, the UK billionaire, is interested in buying Manchester United.