Club Sale | It’s done!

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horsechoker said:
What exactly does Dave Brailsford do?
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Imagine someone found a way to bottle up all those LinkedIn emoji ridden posts and then drank every drop. That’s what we have in Brailsford. Apparently Jake Humphrey was a normal guy until Brailsford breast fed him just once at a BBC Sports Personality of the Year awards after party in the early 2010s.
 
I'm seeing a pattern here. We're combining elements of other clubs to create the penultimate football club.
Owner: Chelsea season ticket holder
DoF: PSG/Newcastle
CEO: City
Manager: Fat Spanish Waiter appointed soon?
 
Vault Dweller said:
There was a very good podcast looking into what he has done at other sporting teams and institutions from the Athletic, it was on a recent Talk of the Devils episode. Goes over the controversy of the Team Sky cycling teams and so on too.
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Yeah that is the pod to listen to for some good insight into Brailsford, without having to hear too much about the cycling. His strength seems to be knowing exactly what is needed and getting the best person for each specific job.
 
Ratcliffe is offering to buy up Class A shares from ordinary folk like me at USD 33. Does that mean that he actually may own more than 25% of United's shares he got from the Glazers?
 
Marcus said:
Ratcliffe is offering to buy up Class A shares from ordinary folk like me at USD 33. Does that mean that he actually may own more than 25% of United's shares he got from the Glazers?
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He's only buying Class B shares from the Glazers. The deal also includes him offering to buy 25% of the Class A shares for the same price. It'll be up to the holders of those shares whether they will sell, but considering he's offering significantly over the value I expect enough of them will. He'll then have 25% of the Class B shares and 25% of the Class A shares, so 25% of all shares in total.

That will increase to 29% of both once he invests the 300m into the club over the next 12 months and gets issued brand new shares.

I think he technically can offer to buy more than 25% of the Class A shares if he wants, but since they bring so little voting power it's unlikely he will. However I presume that any time in the future that he tries to buy more Class B shares from the Glazers he'll have to offer to buy Class A shares again as well.
 
MadDogg said:
He's only buying Class B shares from the Glazers. The deal also includes him offering to buy 25% of the Class A shares for the same price. It'll be up to the holders of those shares whether they will sell, but considering he's offering significantly over the value I expect enough of them will. He'll then have 25% of the Class B shares and 25% of the Class A shares, so 25% of all shares in total.

That will increase to 29% of both once he invests the 300m into the club over the next 12 months and gets issued brand new shares.

I think he technically can offer to buy more than 25% of the Class A shares if he wants, but since they bring so little voting power it's unlikely he will. However I presume that any time in the future that he tries to buy more Class B shares from the Glazers he'll have to offer to buy Class A shares again as well.
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So with the way it's set up, any buyer of the club would have basically needed to pay double what the Glazers want to get control (since the class B shares are the main ones that count for voting power)? Any buyer of class B shares must also buy class A shares, which are sort of worthless in terms of control, effectively doubling the price of control?

If so maybe it's part of the reason why such a deal was reached, where SJR only bought half the class B shares needed for control (since it ends up costing double the amount when the class A shares are factored in) but negotiated for footballing control as part of the deal (which probably cost a premium but less than buying 50% of the class B shares outright).

Does make me wonder though if SJR does plan to ever increase his stake to have full control. He probably had the means to do so. Why wait? I guess the Glazers probably would have wanted more than $33 per share if SJR would have wanted full control right away. But this deal risks someone else coming in and buying them all out for an exhorbitant sum, forcing SJR to match it or sell. The price for the rest of the class B shares needed to reach full control is probably still going to be higher than $33 per share, and anything SJR does now to improve the club is just going to drive that price up more and more.

It just seems weird to buy shares at a premium to get sporting control, which SJR will use to increase the price of what he'll have to pay in the future if he wants full control. The Glazers must have wanted a crazy amount of money to sell enough B shares to give away full control for SJR to agree to the deal he did. But then.. they're still going to demand the same amount or more to let him gain full control now.. Seems short-sighted to not just pay them to go away now, with lots of downsides but no upsides. That is, if he does intend to buy full control. Makes me think maybe he's just content to run the sporting side.
 
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MadDogg said:
It'll be up to the holders of those shares whether they will sell, but considering he's offering significantly over the value I expect enough of them will.
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I think everyone will subscribe to the tender offer, as i expect the share price to fall immediately after.
 
Bright_Eyes said:
So with the way it's set up, any buyer of the club would have basically needed to pay double what the Glazers want to get control (since the class B shares are the main ones that count for voting power)? Any buyer of class B shares must also buy class A shares, which are sort of worthless in terms of control, effectively doubling the price of control?

If so maybe it's part of the reason why such a deal was reached, where SJR only bought half the class B shares needed for control (since it ends up costing double the amount when the class A shares are factored in) but negotiated for footballing control as part of the deal (which probably cost a premium but less than buying 50% of the class B shares outright).

Does make me wonder though if SJR does plan to ever increase his stake to have full control. He probably had the means to do so. Why wait? I guess the Glazers probably would have wanted more than $33 per share if SJR would have wanted full control right away. But this deal risks someone else coming in and buying them all out for an exhorbitant sum, forcing SJR to match it or sell. The price for the rest of the class B shares needed to reach full control is probably still going to be higher than $33 per share, and anything SJR does now to improve the club is just going to drive that price up more and more.
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There's only about half as many Class A shares as there are Class B, so it'll only cost 50% (48% to be exact) extra to get the same percentage of them. Obviously still a significant amount, but not double.

110 million Class B shares
53 million Class A shares

Ratcliffe will likely have to spend more than $33 a share in the future as the value of the club increases further. However since he will already own at least 29% of the shares at that time (possibly more if he gets further shares issued for more investment in the future), his own shares will also have increased in value so will compensate to some extent.
 
MadDogg said:
He's only buying Class B shares from the Glazers. The deal also includes him offering to buy 25% of the Class A shares for the same price. It'll be up to the holders of those shares whether they will sell, but considering he's offering significantly over the value I expect enough of them will. He'll then have 25% of the Class B shares and 25% of the Class A shares, so 25% of all shares in total.

That will increase to 29% of both once he invests the 300m into the club over the next 12 months and gets issued brand new shares.

I think he technically can offer to buy more than 25% of the Class A shares if he wants, but since they bring so little voting power it's unlikely he will. However I presume that any time in the future that he tries to buy more Class B shares from the Glazers he'll have to offer to buy Class A shares again as well.
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Ah ok! Thanks for clarifying that up for me. I am less clueless now. Anyway, now I slightly regret only buying 2 shares. Basically I will benefit 25% profit even though I bought the shares at a high price just to enjoy the ride.
 
cyberman said:
This man completely polite four ffp situation last year and got it hopelessly wrong. Now when we hear the investment means it opens up ffp for us he’s still peddling this nonsense?
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The funny thing is that the replies and quotes to that tweet completely sum up why we're in the current mess.

People want to change how we operate as a club but they also want to throw any long term planning out the window so we finish 4th and qualify for next season's Champions League.
 
“Wow you guys really know what you’re doing don’t you”
 
Is it possible the SJR could go all Succession with the Glazer siblings and hives off the shares of a couple of the less involved siblings to gain complete control? Or are the Glazer holdings tied to each other.
 
Ok, Jimmy Glazer is gone. I’m starting to believe. Sir Jimmy Ratcliffe from now on

There is no way just running the football side worked for me because you’re heavily reliant on the business side for spending money.

It screams of deal in place to improve the club as a whole so the remaining shares can be bought at a few dollars higher per share.

This is why Jimmy and his team could choose the CEO and are probably running the club in the hope they can turn it around or at least show signs of turning it around in the next 18 months.

If in 10-12 months time, it’s not working the Glazers can still listen to offers for full sale. They win in every scenario.
 
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