On the 22nd of November 2020, the Glazer family announced a potential sale of Manchester United that would end their seventeen years at the club. An unpopular reign that began with the leveraged £790 million buyout in 2005.
Protests that had simmered all during their ownership exploded when they signed up for the European Super League with fan groups successfully invading Old Trafford and ensuring the huge game versus Liverpool was postponed. Their demand was simple: “Glazers Out.” With the Glazers’ statement of intent, they may finally be close to having that wish granted.
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. This will include an assessment of several initiatives to strengthen the club, including stadium and infrastructure redevelopment, and expansion of the club’s commercial operations on a global scale, each in the context of enhancing the long-term success of the club’s men’s, women’s and academy teams, and bringing benefits to fans and other stakeholders.
Man Utd announces process to explore strategic alternatives to enhance club growth | Manchester United
But there is a stumbling block. The Glazers value the club between 5 and 9 billion pounds. At least twice as much as Chelsea. But how much is it really worth?
Financial Journalist, SwissRamble attempts to answer that question:
How Much Is Manchester United Worth? – The Swiss Ramble (substack.com)
We recommend you read the informative breakdown that addresses the question with particular attention paid to Why they are selling, Growth Prospects for the Club, Investment Required, Debt, and Potential Buyers among other considerations.
Key takeaways:
The majority of approaches values Manchester United at around £3-4bln. In order to secure a price over £5bln, they would need to sell at a 50% premium to the revenue multiple implied by Chelsea’s sale to Todd Boehly’s consortium.
It’s like selling a house: if 99 people say they would pay £500,000, that is clearly the fair value, but if one super-wealthy individual is willing to splash out £1m, that is the price at which the property will be sold.
Although the reported £6-7bln price sought by the Glazers may seem a very optimistic target based on the financials, it only takes one buyer. Either way, United fans will hope that someone meets the valuation.
How Much Is Manchester United Worth? – The Swiss Ramble (substack.com)
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