The Irish Connection
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- Oct 22, 2017
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You are completely wrong.Let's look at it another way -- look at the destination and then work our way backwards -- a logical approach of what our objective is and then how do we get there.
I am also basing my premise on the fact that it will take £6-8billion at least to buy Manchester United. (Chelsea being the current benchmark of £4.3billion.)
Who do we want buying & owning the club? What do they appreciate and not? Then work our way backwards. These are my possibilities:
1. Sovereign funds from the more authoritarian regimes like the Saudis. I bet they won't appreciate militant protests considering that they would like to use United as a white/sportswash platform.
Chinese? Other Middle-Eastern funds? The best case is the Norwegians, Singaporeans sovereign funds but they won't touch United as the revenues are too unstable.
2. So 'benevolent' multi-billionaire like a Bezos. He will strictly look at United as an investment. Say he pays £ 6 billion to take over the club. How will he recover or get an ROI on that investment?
(Forget about Jim Radcliffe isn't rich enough to spend that sort of money unless he cobbles together a bunch of his friends. But Radcliffe doesn't strike me as the sort of billionaire who likes to make consensus-building decisions.)
3. The only ones will be the multi-billionaires who buy United for fun -- like Paul Allen. (Ok he is dead but he spent his billions for fun.) So like the Google Bros. They can afford to spend 6-8billion.
But will they if they see United as a non-fun entity to own? Militant fans, death threats, fire at their front gates or being hassled at car parks.
Will they want to spend their time looking over their shoulders?
Am I missing another type of potential owner?
Firstly, Chelsea were bought for 2.5b with another 1.75 being pledged for squad and infrastructure investment. United’s valuation is between 4 and 5 billion.
Sir Jim Ratcliffe bid 4.25 billion for Chelsea but he is a United fan.
On your bullet points, the Chelsea sale showed that there are numerous groups who would be interested and of course, United are bigger than Chelsea.
There were reports last year that a Malaysian prince Tunku Ismail was interested in buying a large stake. Just because we haven’t heard of them doesn’t mean there aren’t wealthy buyers out there. And again, this is Manchester United.
Sir Jim Ratcliffe could definitely afford us. His net worth is around 21 billion. And he’s a United fan, and he recently said he would consider bidding for us if we were for sale, which is the problem.
Of course, there are other options of say a joint venture where the fans own 25% Ratcliffe owns 50% and another group owns 25%. Just an example. Michael Knighton is currently working on putting a similar bid together with interested parties.
All we want is the owner to clear the debt and not take dividends, especially when the team isn’t doing well. If that had been the case under the glazers, we would have been able to spend an extra billion in the last decade, so that even if we made the odd mistake like maguire, we could afford to move him on quickly at a loss like city and Chelsea do with their dud signings.
We actually wouldn’t even need the buyers to invest another 1.75 m into the team like at Chelse, as without debt repayments, we make enough to be very competitive.
Their debt and dividends and poor decision making is a massive weight around the clubs neck.
We need to put consistent pressure on them from all angles to sell. And about 5 billion would do it. Then Ratcliffe and others will come forward I’m sure of it.