Glazers To Explore Strategic Alternatives For Manchester United
Manchester United has announced it is commencing a process to explore strategic alternatives for the club.
The process is designed to “enhance the club’s future growth, with the ultimate goal of positioning the club to capitalise on opportunities both on the pitch and commercially.”
As part of this process, the club’s board will consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the company.
The Glazer’s have owned Manchester United since 2005, when Malcolm Glazer controversially took full control of club in a £790m deal which was primarily financed through loans secured against the club’s assets. Tuesday’s announcement looks set to see the family’s 17 year tenure end, but the club is still counting the cost of their ownership with debts totalling over £514m according to their most recent accounts.
The move is expected to include an assessment of several initiatives to strengthen the club, including stadium and infrastructure redevelopment, and expansion of the club’s commercial operations on a global scale, each in the context of enhancing the long-term success of the club’s men’s, women’s and academy teams, and bringing benefits to fans and other stakeholders.
Executive Co-Chairmen and Directors, Avram Glazer and Joel Glazer said, “The strength of Manchester United rests on the passion and loyalty of our global community of 1.1 billion fans and followers.
“As we seek to continue building on the club’s history of success, the board has authorized a thorough evaluation of strategic alternatives.
“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.
“Throughout this process we will remain fully focused on serving the best interests of our fans, shareholders, and various stakeholders.”
The Raine Group is acting as the company’s exclusive financial advisor and Latham & Watkins LLP is legal counsel to the company.
Rothschild and Co. is acting as exclusive financial advisor to the Glazer family shareholders.
