Manchester United, one of the most renowned football clubs in the world, has reportedly caught the eye of American financial investor Carlyle. The private equity firm is said to be in talks to acquire a minority stake in the club, potentially transforming the ownership structure of the club. This news comes as United looks to secure its long-term financial stability during a period of uncertainty in the wake of the ongoing Covid-19 pandemic. In this article, we explore the potential impact of Carlyle’s interest in one of the world’s most famous football clubs.
Carlyle, the giant American financial investor, is reportedly in talks about making a significant investment in Manchester United as the Premier League side’s auction process nears its conclusion. Sources confirmed that Carlyle is among a select group of parties who have submitted proposals for acquiring a minority stake in the famous football club. Carlyle is one of the largest private equity firms in the world with assets under management exceeding £298bn ($370bn). The firm has previously owned companies such as the RAC breakdown recovery service and Addison Lee, the taxi-hire group, in the UK. Insiders say that Carlyle’s interest in the football club is serious, although further details about the investment, such as how much capital might be deployed and the deal structure, remain unknown.
Carlyle’s interest has emerged ahead of a deadline set by The Raine Group, which has been handling the sale process, for final proposals to acquire or invest in Manchester United. The Qatar Islamic Bank and Ineos Sports, part of the petrochemicals group owned by Sir Jim Ratcliffe, are reportedly the two parties that remain in contention to buy out the Glazers, who have controlled the club since 2005. Several financial investors have also shown interest in becoming minority stakeholders or providing some form of structured finance to allow it to upgrade Old Trafford and Carrington training ground’s aging infrastructure.
If Manchester United does sell at a valuation of £5bn, it will become the largest sports club deal in history, surpassing the $6bn takeover of the Washington Commanders NFL team by private equity billionaire Josh Harris. As far as shares are concerned, Manchester United’s New York-listed shares closed down almost 5% at $22.02 last week, giving the club a market value of nearly £3.1bn ($3.8bn). Meanwhile, Manchester United’s fans’ group, the Manchester United Supporters Trust (MUST), has called for the auction to conclude “without further delay.”
As Manchester United continues to dominate headlines both on and off the field, the news of Carlyle’s potential acquisition of a minority stake only adds fuel to the fire. As one of the largest financial investors in the world, Carlyle’s involvement in Manchester United could signal a significant shift in the club’s ownership structure. While negotiations are ongoing, it remains to be seen what this could mean for the future of one of football’s biggest powers. Regardless of the outcome, one thing is clear: Manchester United’s status as a global brand and cultural icon ensures that interest in the club will always be at a fever pitch.
