Manchester United’s Premier League rivals Tottenham are being linked with a majority takeover deal after a boardroom reshuffle.
More than eighteen months have passed since Sir Jim Ratcliffe’s £1.25 billion takeover of Manchester United to acquire a minority stake in the team.
Ratcliffe currently owns about 29% of United, but more significantly, he has total control over sports, with the Glazer family content to take a backseat.
Sheikh Jassim of Qatar faced off against Sir Jim Ratcliffe during the takeover drama, and Ratcliffe prevailed. Both prior to and following his interest in United, Jassim was connected to a Tottenham takeover.
Spurs recently revealed that longtime chairman Daniel Levy was leaving, which has led to speculation that a takeover may be imminent.
Tottenham’s £4bn takeover valuation suits Sir Jim Ratcliffe
Although current owners ENIC have stated that the club is unquestionably not for sale, Tottenham has acknowledged interest in a buyout.
The Daily Mail claims that a takeover is not completely ruled out and that interested parties value Tottenham at almost £4 billion.
In contrast, the Red Devils were valued at almost £5 billion in Ratcliffe’s bid for United. During the takeover drama, Jassim made a £5 billion offer, but the Glazers finally chose Ratcliffe’s offer.
By continuing to purchase shares from the Glazer family, it has been strongly implied that Ratcliffe eventually wants complete control at United, according to The Athletic.
Ratcliffe has a ‘right of first offer’ on any shares the Glazers try to sell, which puts him in a good position to continue building his ownership stake at Old Trafford.
If he had any concerns about any other bidders coming in, or the Glazers raising the price, the Tottenham valuation suggests that he is already paying a premium rate for shares in United.
Sir Jim Ratcliffe can continue building Man United stake
Ratcliffe’s ownership has already increased to almost 29% thanks to his infrastructure investment at United, and it doesn’t appear like he will stop there.
When compared to Tottenham, the Glazers must be happy with the price of the shares they have already bought, which puts United’s value at about £5 billion.
Tottenham has a brand-new, state-of-the-art stadium worth £1.2 billion that can generate hundreds of millions of dollars in revenue. They also have a location in London and revenue streams from European football.
In a recent interview with United in Focus, Kinnaird Sports Intelligence revealed that Ratcliffe is significantly overpaying because their model only valued United at £1.75 billion.
Ultimately, the Glazers should be delighted if Ratcliffe continues to buy up their shares at the current price. That is a win-win for all involved.
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