Man United to provide sponsors with critical takeover update after Saudi talks revealed
Potential new Man United shirt sponsors will be informed which groups are in the running to acquire the club, Football Insider has been told.
United have been on the hunt for a new front-of-shirt deal since they agreed to buy back their rights from TeamViewer, who were unimpressed with the results of their £47million-a-year deal with the club.
The commercial department’s search is running concurrently with the efforts of the Glazer family to sell the club after nearly two decades at the wheel.
Britain’s richest man Sir Jim Ratcliffe has formally entered the race, while multiple investment groups from the Middle East are also exploring the possibility of a deal.
A source told Football Insider earlier this month (3 January) that United have held front-of-shirt talks with Visit Saudi, and reports that stated the negotiations had collapsed at the 11th hour are wide of the mark.
Visit Saudi are financed by the Saudi government, which geopolitical experts suggest could cause friction if United are in takeover discussions with groups from rival Gulf states.
Ben Peppi, commercial expert and head of sports services in the London office of law firm JMW Solicitors, claims that prospective sponsors will be in the loop regarding the future ownership of the club.
“The talks with Visit Saudi come at an interesting time,” he told Football Insider.
“If you’re a sponsor and know there is a new ownership group coming in, you want to be privy to these conversations.
“There will be due diligence and knowledge sharing about the potential risks of partnering with United should they decide to sell to a group that doesn’t align with the sponsor’s geopolitical, socioeconomic or human rights stance.
“Where the lines could get slightly blurred is if an ownership group acquires United and then they strike a deal with a sponsor which is not directly linked to the ownership group but is indirectly linked in some capacity.
“Business-to-government dealings in the Gulf region are tied far more closely than elsewhere across the world. It’s possible there will be brands within a subsector linked indirectly to the ownership group.
“It appears that United ideally want to up-sell as quickly as possible but they are unlikely to sell to a partner that doesn’t align with a new ownership group, because that is clearly a much more significant factor.
“The fact their most valuable sponsorship inventory is available could be very attractive to a new acquirer.
“Associated-party deals are interesting. Who is to say that, if a group is acquiring a club for billions, they then can’t leverage their brand across the club as long as they do it within the regulations?
“However, they have a family of current partners. Should United decide to sell the club to a specific ownership group who don’t align with some of their other commercial partners, there is a risk that they lose them. So, it’s a balancing act.“
In other news, Man United join race to sign Spanish sensation Ivan Fresneda.