On Tuesday 22 November, Manchester United ownership, the Glazer family, sent shockwaves in the footballing world when they announced that they’ve begun exploring “strategic alternatives for the club” and it could potentially be sold in the coming future.
“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,” the club statement explained.
Raine Group, the American investment fund which facilitated Chelsea’s £4.25bn sale in May, will act as United’s exclusive financial advisor while the legal counsel will be provided by Latham & Watkins LLP.
Club statement on a process to explore strategic options for Manchester United.#MUFC
— Manchester United (@ManUtd) November 22, 2022
Malcolm Glazer and his family acquired the Red Devils in 2005 for £790m via a leveraged financial model, wherein borrowed money was used to finance the purchase. At the time of the acquisition, United was debt-free while at the time of writing, the club has a net debt of over £500m.
The news of a potential change of ownership of the club has been welcomed by United fans, a large proportion of whom have been disillusioned with the Glazers ever since their arrival. “The last 17 years has been characterised by debt and decline – on the field and off it. The vast majority of United fans will agree with the conclusion you appear to have also reached – it’s time for change,” Manchester United Supporters’ Trust (MUST) recently told the Glazer family in an open letter.
Why are the Glazers selling?
“You have made huge amounts of money from Manchester United,” was also proclaimed in MUST’s letter. It’s an open secret that the paramount priority for the American ownership has always been finances and profit-making, in which they’ve excelled. Sporting success was always perceived as a means to an end, and not an end goal in itself. So why are they looking for suitors now?
The urgent need to modernise and heavily invest in the deteriorating Old Trafford, the training facilites at Carrington, and other infrastructure, is a financially towering task and can be one possible reason behind the Americans’ decisions. Unlike the modern-day, state-of-the-art stadiums, which seek to maximise fan experience around the stadium, United’s Old Trafford is lagging behind its competitors, such as Spurs’ Tottenham Hotspur Stadium,…
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