Manchester United’s share price suffered its worst day ever, falling 18.22 percent. It follows weekend reports that the Glazer family wanted to take the club off the market.
The share price closed at $23.66 on Friday and fell to $18.83 on Tuesday, closing at $19.35.
This is the biggest selloff since United’s IPO in 2012, with the previous record decline of 13.8 percent on March 12, 2020.
The two bidders, Sir Jim Ratcliffe and Sheikh Jassim, remain interested; However, reported the Mail on Sunday that the Glazers plan to take Man Utd off the market. They then plan to put the club back up for sale in 2025 in the hope of valuing it at between £7bn and £10bn.
However, the reports Daily Mail claimed that “nothing has changed”. and the Glazers haven’t made a decision yet.
Sheikh Jassim bin Hamad al-Thani’s latest offer is for £5 billion. However, the Glazer family would prefer that British billionaire Sir Jim Ratcliffe take the helm.
It was previously reported in the Sun that Sir Jim, the chemical tycoon, was the first choice as he found himself in a five-month bidding war for ownership of the club he had supported since childhood.
The Glazers put Britain’s biggest football club up for sale last November. Almost 200 days later, Old Trafford insiders told the Sun that the Glazers would rather sell majority control to Ratcliffe’s Ineos Sport than sell the entire club to Sheikh Jassim.
Despite the recent problems on the pitch at Old Trafford (the club had not won a trophy for six years until their Carabao Cup success in February 2023), the Red Devils are still one of the most popular and marketable football teams in the world. They have won the English league title 20 times and the European Cup three times, among many other trophies, a record number.
But who are the Glazers and why are they selling United?
Who is the Glazer family?
Malcolm Glazer was a businessman and sports franchise owner in America who died in 2014.
He was born in New York and started working for his father’s watch parts company at the age of eight. When he was 15, his father died and he sold watches door to door to support his family.
Glazer owned not only United, but also the Tampa Bay Buccaneers of the National Football League. He was president and chief executive officer of First Allied Corporation, a holding company for his diverse business ventures.
United is currently owned by his six children. The Glazers bought the club in 2005 for £790 million in a heavily leveraged deal that was criticized for burdening the club with debt.
They sold 10 percent of their shares via the 2012 U.S. listing and have since sold additional shares, but still retain majority ownership. United’s valuation as a listed company peaked at $4.3 billion (£3.4 billion) in 2018.
How much is her net worth?
Forbes estimated the family’s fortune at £4.7 billion.
What does the Glazer family own?
Glazer’s six children, Avram, Bryan, Darcie, Edward, Joel and Kevin, own United after he purchased the majority of the club’s shares through investment firm Red Football Ltd in 2005.
The six Glazer children each received an equal share of their father’s 90 percent controlling interest after he died of a lengthy illness.
Since their late father’s stroke in April 2006, Joel and Avram have been responsible for overseeing the club’s day-to-day operations. They are co-chairs and Bryan, Darcie, Edward and Kevin serve as directors.
Avram Glazer offered shares worth £70 million for sale in March 2021.
Why does the family want to sell Manchester United?
The Glazers sell United because of debts. The club was debt-free when the Glazers took over ownership in 2005. However, the purchase deal, recommended by former deputy chief executive Ed Woodward, is said to have left the company in debt of more than £500m.
To fans’ dismay, Malcolm Glazer used a leveraged buyout program to finance a large portion of the acquisition rather than using his own funds.
This involves taking out a loan against a future asset in order to purchase that item. In this example, interest payments amount to more than £60 million per year.
The takeover is widely claimed to have cost the club more than £1bn in interest and other costs over the years.
Due to the Covid-19 epidemic, the club’s debts had increased by 133 percent to £474 million by the end of 2020.
Since 2015, the club has paid an annual dividend, most of which goes to the Glazers, and the company’s tax registration was transferred from Old Trafford to the Cayman Islands in 2012.
The club’s 2018–19 accounts included dividends totaling £23 million. The six Glazer siblings apparently shared around £18 million of it.
Club revenues have more than doubled since 2005 and United were named the third most valuable football club in the world by Forbes last May. This was largely due to the significant and diverse commercial partnerships formed under the Glazers.
The club finished fourth behind Liverpool, Real Madrid and Manchester City in the Deloitte Football Money League 2023, an annual profile of the highest-grossing clubs in world football.
https://www.standard.co.uk/news/uk/glazer-family-owners-manchester-united-net-worth-b1059986.html Who is the Glazer family and what is their net worth? Manchester United shares are suffering their worst day