The Red Knights are ready to make a £1.25bn bid for Manchester United next month. £500m will be raised from a group of 50 investors who will now have to put their money where their mouth is and most of them probably will. A share issue to fans could raise £250m, but their stake could be expanded if there is enough demand, which there could well be. The £509m bond raised by the Glazers will be kept in place.
The Red Knights are ready to make a £1.25bn bid for Manchester United next month. £500m will be raised from a group of 50 investors who will now have to put their money where their mouth is and most of them probably will. A share issue to fans could raise £250m, but their stake could be expanded if there is enough demand, which there could well be. The £509m bond raised by the Glazers will be kept in place.
The only problem is persuading the Glazers to sell. It’s a bit like making an offer on an house which is not for sale. You make a good offer, but the owner quite likes living there and thinks they could make a better capital appreciation if they hang on a for a few years.
The article we have linked to says that the Red Knights think that the early exit from the Champions League together with falling match-day receipts has decreased the value of the club. But they could do better in the Champions League next year and the Premiership title is still a possibility. The situation is completely different from Liverpool where the banks have been putting pressure on the owners to sell. I think the Glazers are just the sort of people to dig in given that they think that there is still more revenue and capital appreciation to be squeezed from the ‘franchise’.