Sheikh Jassim’s Ambitious Plan for Man United Resonates with Roma’s 2020 Takeover
A Tale of Two Bidders: Jassim and Ratcliffe Lock Horns
An intriguing £5bn contest is shaping up at Manchester United as Sheikh Jassim and Sir Jim Ratcliffe jostle to seize the ownership reins from the Glazer family. The future of the illustrious club hangs in the balance as the Glazers weigh their options, yet to crown a preferred bidder.
In a week that saw reports of a close-to-complete Qatar takeover ricochet around the footballing world, United’s stock market value rocketed a staggering 20% in a mere 48 hours. The surge added an additional £270 million to United’s market value, as reported by Football Insider
Jassim’s Vision: A Private Red Devil Kingdom
Should the Qatari bid triumph in claiming 100% ownership, United will be set to be delisted from the stock exchange, thereby transforming into a privately-held entity. This is a strategic move mirroring Roma’s transition under the Friedkin Group, a path United has not ventured down since first being floated on the New York Stock Exchange back in 2012.
Viva Mukherjee, a football finance analyst and chartered accountant, stated to Football Insider that Sheikh Jassim’s roadmap for United seems to emulate the Friedkin Group’s at Roma, albeit on a grander scale.
“I think the investment plan of Sheikh Jassim is very similar to that of the Friedkin Group at Roma but on a larger scale,” Mukherjee explained.
Echoing Roma’s Revolution: Jassim’s United Masterplan
Mukherjee went on to draw parallels between the two potential takeovers. In 2020, the Friedkin Group acquired an 86.6% majority equity of AS Roma for £510 million, including £331 million of debt previously accumulated by the former owner. Jassim’s Qatari bid aligns with this playbook, proposing to absorb the hefty £725 million gross debt burden currently looming over Old Trafford.
“The Friedkin Group needed 95 per cent equity to delist the Italian club from the stock exchange – a stake that Jassim would own at Old Trafford if he successfully won the takeover,” Mukherjee continued.
Jassim’s bid of roughly $6.3 billion (£4.95 billion) is designed not only to win over the Glazers but also to appease the club’s shareholders, a contrast to Ratcliffe’s bid which appears to intend to keep the club’s debts and maintain its status on the stock exchange.
“I believe Jassim will want to do similar and delist United from the stock exchange should he become the new owner,” said Mukherjee. “It is the opposite to the Ratcliffe bid, where the debt of the club will likely remain and the club could continue to be traded on the stock exchange.”
