Kieran Maguire makes Man United takeover claim after source’s Qatari bid news today – ‘only one reason they would pay that price’
The £6-8billion price tag placed on Man United by the Glazer family is a “very optimistic” fee for a full takeover.
That is the opinion of finance expert Kieran Maguire, who spoke exclusively to Football Insider about the flaws in the Glazers’ valuation of the Manchester club.
The Red Devils were put up for sale by their American owners back in November, with the Glazers stating they were searching for “strategic alternatives”.
Bids have since been submitted by Qatar investors and Sir Jim Ratcliffe, but Football Insider revealed on Wednesday that neither submission is set to reach the £6-8billion asking price for a full takeover.
The Qatar Investment Authority (QIA), the sovereign wealth fund fronted by Sheikh Jassim bin Hamad al-Thani, is currently in pole position to buy the club.
The Daily Mail (24 January) report that the Glazers will refuse to negotiate on their asking price, with the Americans keen to hold out for a world record fee.
Maguire believes the asking price makes no business sense, but admits a bidding war of “testosterone” could result in a bidder reaching the price tag.
“I think the Glazers are being very optimistic in terms of trying to generate a price, it’s estimated that they’re asking for somewhere between 6-8 billion,” Maguire told Football Insider.
“The only reason why somebody would pay a price of that nature is if they are looking for a trophy asset and there are no bigger trophy assets than Manchester United itself.
“But based on business fundamentals, expected future cash flow and the fact that whoever buys Manchester United is probably going to have to spend a billion or more in terms of a new stadium and a significant investment in infrastructure, the valuation is very high.
“In the world of football and finance, if there is somebody who can be persuaded and testosterone takes over from common sense and it becomes a bidding war, only then will that price potentially be achieved.
“But It would be very difficult to justify.”
In other news, expected winners named in Man United takeover battle after update today.