Manchester United stock slides 6% amid report takeover bids are below owners' valuation

By James Rogers

Manchester United's stock falls as the historic soccer club's takeover saga continues

Manchester United's stock slid Monday as the historic soccer club's takeover saga continues.

Shares of operator Manchester United Ltd. (MANU) fell 6% vs. the S&P 500 index's gain of 0.5%. Citing unnamed sources, ESPN reported Monday that the revised bids for the club fall short of the valuation set by the American Glazer family, which owns Manchester United. However, there is still hope that a buyout can happen, according to the sources.

MarketWatch has reached out to Manchester United with a request for comment on this story.

Also read: Manchester United: Sheikh Jassim, Thomas Zilliacus, submit improved takeover bids

Qatar's Sheikh Jassim Bin Hamad Al Thani, British billionaire Sir Jim Ratcliffe and Finnish entrepreneur Thomas Zilliacus have all submitted improved bids for Manchester United. The values of the bids have not been revealed.

ESPN reports that bids from Sheikh Jassim and Ratcliffe have been increased from around $5.53 billion but remain below the asking price of around $7.4 billion.

MarketWatch has reached out to Sheikh Jassim's Nine Two Foundation, which is handling his bid, and Sir Jim Ratcliffe's representatives, with a request for comment on this story.

Related: Manchester United takeover drama continues as billionaire Jim Ratcliffe submits revised bid

Sheikh Jassim is the chair of Qatar Islamic Bank and the son of a past prime minister of Qatar. The Sheikh's Nine Two Foundation was named in an apparent nod to Manchester United's "class of '92" FA Youth Cup-winning team, which included future stars David Beckham, Ryan Giggs, Paul Scholes, Gary Neville, Phil Neville and Nicky Butt.

Ratcliffe is the chief executive of the chemical giant Ineos and the billionaire's sporting links are strong: Ratcliffe, who ranks 27th on the Sunday Times Rich List, already owns the French Ligue 1 soccer club OGC Nice and the Ineos Grenadiers professional cycling team.

Zilliacus is the founder of social-media organization novaM Group. He is also the former chairman of Finnish soccer club HJK and former co-owner of hockey team Jockerit.

Manchester United: Finnish entrepreneur joins takeover race, wants rivals to team up in joint bid

The Finnish entrepreneur has urged Ratcliffe and Sheikh Jassim to join forces with him in a joint bid for the club. He says that his plan is to first buy Manchester United, then to set up a mechanism that enables fans to make an investment and vote to decide footballing matters related to the famous club.

Football 365 journalist Andy Ford posted a survey on Twitter asking Manchester United fans whether they would prefer Sheikh Jassim or Thomas Zilliacus as owner, with just over 51% of respondents voting for the Finnish entrepreneur.

"Should we be successful in our bid we will ensure that Manchester United will operate on a foundation of respect, equality, dignity, diversity, racial harmony and democracy, and with its global fan base included and involved in all decisions," said Zilliacus, when he announced his bid.

See Now: Manchester United stock jumps after report of 'world record bid' for the club

The Glazers have come under intense pressure to sell the iconic English football club amid ongoing fan frustration over what is seen as underperformance. The club, one of the biggest names in world soccer, last won the Premier League in 2013. In 2021, the Glazers faced major backlash from fans over planned involvement in the controversial European Super League.

In November, they confirmed they were exploring potential financial investment or an outright sale of the storied Premier League club.

-James Rogers

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03-27-23 1534ET

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