The Glazer family, current owners of the club, are open to selling Manchester United, it has been confirmed.
After reports emerged of the potential sale, the club released an official statement late last night confirming the intention to sell if the right offer is received.
The American owners of one of Europe’s historically most successful clubs are willing to listen to offers after a 17-year reign dominated by fan protests and declining on-pitch performances.
If the club – valued at around £5 billion — is sold, it is expected to be purchased by US investors, according to Sky Sports.
Finance experts said Manchester United’s share price immediately rose by 17 per cent as a result, adding almost $400m (£336.4m) to the club’s market capitalisation.
“Manchester United plc (NYSE:MANU), one of the most successful and historic sports clubs in the world, announces today that the Company’s Board of Directors (the “Board”) is commencing a process to explore strategic alternatives for the club,” the club statement reads in part.
“The process is designed to enhance the club’s future growth, with the ultimate goal of positioning the club to capitalize on opportunities both on the pitch and commercially.
“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.”
Executive co-chairmen and directors Avram Glazer and Joel Glazer said: “The strength of Manchester United rests on the passion and loyalty of our global community of 1.1 billion fans and followers. As we seek to continue building on the club’s history of success, the Board has authorised a thorough evaluation of strategic alternatives.
“We will evaluate all options to ensure that we best serve our fans and that Manchester United maximises the significant growth opportunities available to the club today and in the future. Throughout this process we will remain fully focused on serving the best interests of our fans, shareholders, and various stakeholders.”
The Raine Group, which facilitated the £2.5 billion sale of Chelsea over the summer, is acting as United’s exclusive financial adviser, with Rothschild and Co performing the same role to the Glazer family shareholders.
United have not won the Premier League title since 2013, and have sacked a succession of managers in the aftermath of the retirement of Sir Alex Ferguson.
It is possible that the Glazer family, who took control of United in 2005 in a £790m deal largely funded by debt, could opt not to sell.
A partial sale to new investors, with capital being raised to fund an overdue redevelopment of Old Trafford, is one potential outcome from the process.
The Glazers have acknowledged the need for new infrastructure investment to transform the stadium into a genuinely world-class venue, while substantial funds are also required to enable the men’s team to compete once more at the top of the European game.
United’s valuation in a sale would inevitably exceed the roughly $2.15bn market capitalisation implied by their share price during yesterday’s trading session on the New York Stock Exchange.
Reports in recent months have speculated any transaction would need to value the club at anywhere between £5bn and £9bn to persuade the owners to sell.
The Glazers listed a minority stake in the company in 2012 but retained overwhelming control through a dual-class share structure which means they hold almost all voting rights.
For more than 18 months, the club have been promising to introduce a modestly sized supporter ownership scheme that would give fans shares with the same structure of voting rights as the Glazers.
The initiative has, however, yet to be launched despite a pledge to have it operational by the start of the 2021-22 season.
It was one of a number of commitments made by Joel Glazer, United’s co-chairman, in the wake of the European Super League controversy, in which the club played a pivotal role.
