Revealed: Man United could be taken off Stock Exchange amid Middle East takeover latest
Man United would likely be taken private if they are bought by a state-affiliated group from Saudi Arabia or Qatar, Football Insider has learned.
Investment groups from the two Gulf states have been heavily linked with a takeover since the Glazers announced their intentions to sell in late November.
A United source told this Football Insider later that month that the controversial American family are confident of striking a world-record deal to end their 17-year ownership.
The Red Devils first floated on the New York Stock Exchange in 2012 and a total of 5.6 per cent of the club’s shares are currently listed.
But the Glazers own all of United’s B shares which carry far greater voting rights than the publicly available A shares, giving them near total control in terms of strategic direction.
Conflict of interest statutes enforced by the Premier League and UEFA would make it tough for the sovereign wealth funds of Saudi Arabia and Qatar, who own Newcastle United and Paris Saint-Germain respectively, to buy Man United.
But as long as the regulatory threshold for independence is met, nothing is stopping a group with close links to either nation’s monarchy from taking control at Old Trafford.
Vivaswan Mukherjee, a chartered accountant and football finance analyst, told Football Insider that a state-affiliated group would “no doubt offer a premium to the remaining 5.6 per cent of shareholders to take United private.
“United fans might be hostile to this and it would be difficult to navigate that controversy, but the remaining shareholders have limited power and would most likely have to sell their equity,” he said.
“Going forward, that would reduce transparency around the club’s operations, making it easier to launch into a PR exercise if there are concerns about links to states with human rights issues.
“Either way, they would have to fight massive controversy and there are major hurdles to overcome. I don’t think further riots and demonstrations involving fans not attending games are out of the question.”
United’s share price jumped to its highest point in almost five years following the news that the Glazers were prepared to jettison their stake.
Saudi Arabia’s sports minister Prince Abdulaziz has insisted that his government would support a private bid for the club.
Professor Simon Chadwick, who specialises in sport and geopolitical economy at SKEMA Business School, recently told The Athletic that it is not beyond the realms of possibility that the Saudi Public Investment Fund could “dispose of Newcastle and buy Manchester United.”
In other news, Man United told to pull the plug on Jeremie Frimpong deal after Sky update.