Manchester United‘s owners the Glazer family on Tuesday said that they are considering selling the football club, 17 years after they bought it for $ 1.34 billion in 2005. This comes after years of protest from fans against the ownership. The fans have been demanding a change in the ownership of the club as the club has gone five years without winning a trophy. The last time they won was the Europa League and League Cup back in 2017.
The Glazer family is starting a process to explore strategic alternatives including a new investment or a potential sale. The current owners are working with the financial advisers on the process which could lead to a partial sale of the Old Trafford club or investments including stadium and infrastructure redevelopment.
"As we seek to continue building on the club’s history of success, the board has authorized a thorough evaluation of strategic alternatives," Avram Glazer and Joel Glazer, executive co-chairmen and directors of United, said in the statement. "We will evaluate all options to ensure that we best serve our fans and that Manchester United maximizes the significant growth opportunities available to the club today and in the future," the statement said.
Manchester United shares plunged as much as 20% after Sky News first reported about the sale process, giving the club a market capitalisation of $2.6 billion. The company was worth $2.5 billion at the close of U.S. trading on Tuesday. British billionaire Jim Ratcliffe had expressed interest in buying United in August as reported by the news agency Reuters. At the time, Tesla CEO Elon Musk had also joked about planning to buy the club.
The owners are under pressure with United sitting fifth in the Premier League halfway through the season. Earlier on Tuesday, the club said that star striker Cristiano Ronaldo would immediately leave the team. This marks a bitter end of his second stint with the club. He said that he felt betrayed by the club.
The Raine Group is the financial adviser and Latham & Watkins LLP is the legal adviser to Manchester United and Rothschild and Co. is acting as the financial adviser to the Glazer family shareholders.
(With Reuters Inputs)