The value of Manchester United in the stock market experienced a significant decrease of above £600 million, which is a 16% decrease in the club’s value.
Recall that reports on Sunday, September 3, 2023, indicated that the Glazers had removed the Red Devils from the market.
Those reports claimed that the American owners of Manchester United were not happy with the bids received so far, and as such, they have opted to halt the sale process.
The Glazers are reportedly hoping that a higher bid will be tabled, which they will hastily sanction.
Manchester United’s value in the stock market plummeted from £3 billion to £2.4 billion on Tuesday, August 5, 2023.
Manchester United in the stock market
The £600 million decrease is the Red Devils biggest fall on the New York Stock Exchange on record, and this was witnessed on the first day of trading.
The Glazers had revealed on November 22, 2022, that they were “commencing a process to explore strategic alternatives” that would be beneficial to the club.
Excerpt from a statement released on Manchester United’s website reads:
“As part of this process, the Board will consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the Company.”
This certainly implied that they were also looking at the possibility of selling the club, and subsequently, there have been several cogent bids tabled for the club.
Three notable bidders put their heads in the ring at some point in the sale process, and it was unknown who would win the race.
Individuals that have tabled bids to acquire Manchester United
Thomas Zilliacus, Sir Jim Ratcliffe, and Sheikh Jassim were the three notable names, however, only two out of the three bidders remain in the race.
Zilliacus pulled out of the race to buy a 50% stake in Manchester United, after the Glazers opted to proceed to a third round of bidding.
For Sir Jim Ratcliffe, and Sheikh Jassim, their bids had the farthest reach, although in August, reports circulated that Sheikh Jassim had won the race to acquire the Old Trafford club.
However, it seems the British billionaire and Saudi Arabian tycoon have apparently not met the monetary requirements of the Glazers.
The conclusion of the statement released by Manchester United in November 2022 reads:
“There can be no assurance that the review being undertaken will result in any transaction involving the Company.”
This also implies that it is not a given that the club would be sold, despite supporters of Manchester United voicing out their displeasure against the Glazers.
Meanwhile, subsequent reports have claimed that the bidders had not been informed the club would be taken off the market.
Sources close to the bidders have shared that nothing had changed and that the status quo remains concerning the sale process.
