Kieran Maguire drops £10billion Man United takeover claim
Profits at Man United would have to reach ‘extreme’ levels in order for the club to reach a £10billion valuation.
That is the view of finance expert Kieran Maguire, who spoke exclusively to Football Insider about United’s potential revenue if they are able to monetise fans.
The Glazers have ordered a third round of takeover bids at United, with frontrunners Sheikh Jassim and Sir Jim Ratcliffe both expected to put forward new offers.
However, the Red Devils owners haven’t ruled out staying at the club, with ESPN reporting that the American family are growing increasingly confident of staying put at Old Trafford.
The report adds that Joel and Avram Glazer believe that the potential for growth at the club could eventually make United worth at least £10billion.
Broadcast revenue, streaming opportunities and a possible restructuring of the club game are cited as possible growth areas.
Maguire believes monetising United’s huge fan base would help to match that valuation, but adds that doing so has proved to be difficult for many clubs.
“Manchester United in its present state is not worth £6billion let alone £10billion. The Glazers will be looking at Man United’s global audience and how to part with more cash,” Maguire told Football Insider.
“If we take the 1.1 billion followers that Man United regularly cite in their annual report as a factor that they can monetise, then they only generate on average about 53p per fan every season.
“They only have to double that and suddenly they go from a £600million-a-year business to a £1.2bn-a-year business.
“If that became possible, the club would be a profitable vehicle on an extreme level – even if part of that money flows through to increased headcount and wages.
“However, opening that revenue stream has been the Pandora’s box that many big clubs have tried to crack over the last 20 years with no success.
“But in a world with everchanging technology, bringing Old Trafford to fans around the world might now be easier than bringing fans to Old Trafford.“
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