Negotiations have started
Posted by hakanrylander on May 7, 2010
Yesterday all three of my favourite newspapers (Guardian, Telegraph and The Times) were contacted by “a source close to the Glazers” and told that the family have rejected numerous offers for the club. One of those offers amounted to £1.5 billion from a Middle Eastern bidder. The source also insisted that the family is not interested in selling “at any price”.
This is of course rubbish. In the world of business all assets are for sale at a price. The only exceptions are cases where there is a strong emotional bond between owners and asset. I don’t believe for a minute that such a bond exists between the Glazers and Manchester United. If anything, the coordinated leak proves that the Glazers are indeed prepared to sell and have started public negotiations by indicating that they will want a lot more that £1.5 billion.
The rejection of a seemingly generous offer of £1.5 billion has been interpreted as stubborness. I think it’s got more to do with business logic. The family seem convinced, rightly in my view, that the club’s income could soar in the next decade by developments such as individual TV-deals for the big clubs, a European Super League, new broadband-based ways of selling the “product” etc.
My estimate (well, “guess” is probably a more appropriate word tbh) is that it will take a bid in excess of £2 billion to convince the Glazers to sell. I don’t think the Red Knights are prepared to pay that much. But someone in the Middle East or China might be. I look upon today’s stories in the Guardian, the Telegraph and The Times as the Glazers’ opening gambit to those potential buyers.