According to reports, Qatari financier Sheikh Jassim’s £6 billion proposal to buy Manchester United has been accepted by the Glazer family and due diligence has commenced.
The Glazers first confirmed they were ‘exploring strategic alternatives’ in November of last year, thus the takeover conversations have been going on for nine months.
The bidding process has been reduced to a straight battle between Qatari-backed Sheikh Jassim and Ineos founder Sir Jim Ratcliffe since the conclusion of last season.
The Glazer siblings had been contemplating the two bids for some time, with Joel and Avram preferring Ratcliffe’s offer because it would have allowed them to keep their shares.
But, despite repeated deadlines, Sheikh Jassim kept increasing his bid, and now The Sun reports that the Glazers have finally reached an agreement and would commit to a full sale of the club.
According to the story, senior individuals at Old Trafford told the Glazers that retaining any shares would result in a ‘massive backlash’ from supporters.
But Avram and Joel appear to have caved, and the family’s contentious 18-year rule at Old Trafford appears to be coming to an end.
Sheikh Jassim will purchase 100% of the club and will also pay off the club’s gross debt of £725 million accumulated during the Glazers’ tenure as owners.
The Qatari banker’s team is currently conducting due diligence on the club before the takeover can be finalized, with the deal expected to close by mid-October.
In addition to its own due diligence, the Qatari proposal must also satisfy the Premier League’s Owners’ and Directors’ exam, generally known as the Fit and Proper Persons’ test, before it can be approved.
The transaction will not be finalized in time for United to spend in the transfer market before the window closes at the end of the month, but Sheikh Jassim intends to enhance both Old Trafford and the club’s Carrington training facility.
Due to NDAs (non-disclosure agreements) signed when they joined the process, neither the Qatari nor Ineos bids have been authorized to comment on the process or provide updates.
Ratcliffe did, however, imply Sheikh Jassim would not have a blank cheque book, saying in a rare interview in early July: ‘You can only spend the money that you receive. Obviously, this was not always the case, as evidenced by PSG and Manchester City.’
