By Michael Elkins
The Telegraph reports today that Saudi Arabia has joined the race to buy Manchester United Ltd (NYSE:MANU) ahead of Friday’s deadline.
Multiple private groups in Riyadh have made formal inquiries and look set to battle in what could be the biggest deal in sporting history.
Whether Saudi Arabia proceeds with tabling an offer remains to be seen, but intermediaries acting for several groups in the country have signed for sale materials. Sources close to the country's £515 (£1 = $1.1994) billion Public Investment Fund (PIF) have played down the likelihood of a state-backed bid.
Any Saudi Arabian investment at United would prompt outrage from human rights groups. Amnesty International and other groups have already attacked the prospect of a Qatari takeover.
Detailed offers have been received by the Glazers, but the family is keeping its options open. Due to United's status on the New York Stock Exchange, brokers acting for the club are duty-bound to consider offers even after Friday's soft deadline expires. However, extensive offers, detailing investors' plans, and source of funding, are still expected this week amid a late surge of total buyout and minority investment interest.
The Glazers want around £5B for the club but Ben Peppi, head of sports services at JMW Solicitors, says "shrewd investors will not overpay" as he gave the club a valuation of £4.5B. "An infrastructure commitment of £2bn could also be a realistic fee for Manchester United," he added.
Shares of MANU are up 8.34% near end-of-day trading on Thursday.