SUMMARY
- INEOS Sports bought a quarter of Manchester United for ÂŁ1.3 billion, valuing the club at ÂŁ5.2 billion.
- Glazer family, led by Malcolm Glazer, gradually acquired Manchester United, completing the full takeover in 2005.
The Glazer family’s reign over Manchester United has been a saga filled with fan protests and financial anxieties. In December 2023, things took a significant turn with the announcement of a 25% stake sale to British billionaire Sir Jim Ratcliffe. But how much did the Glazers walk away with from this deal, and what does it mean for the future of the Red Devils?
Ratcliffe’s INEOS Sports group agreed to pay ÂŁ1.3 billion for the 25% stake, valuing the entire club at a whopping ÂŁ5.2 billion. This sum represents a massive return on investment for the Glazers, who acquired the club in 2005.
🚨 The Glazer family will have pocketed more than ÂŁ1.3bn from share sales and dividend payments at Manchester United once Sir Jim Ratcliffe’s deal for a 25% stake in the club is formally completed.
(Source: Telegraph) pic.twitter.com/jWcYeEXsVj
— Transfer News Live (@DeadlineDayLive) December 28, 2023
Despite facing considerable fan backlash over their leveraged buyout and debt burden on the club, they’ve undeniably benefited financially from their ownership. With Ratcliffe looking to make the minority bid a full takeover soon, the Glazers might benefit even further as the value of the club in the current market will only rise.
How much did the Glazers buy Manchester United for?
The Glazer family initially took over the scenes across the English soccer back in 2003 led by American businessman Malcolm Glazer. In March 2003, holding a 2.9% stake in Manchester United for around $11 million which they purchased through a company called Red Football.
In September 2003 they increased their stake to 3.17% taking their holdings above 3% which led them to inform the club’s management. A month later they further increased their investment to 8.93% and another month later, this stake increased to 15%.
After holding such a stake, they went on to meet then Chief Executive of Manchester United, David Gill to discuss their intentions. By October 2004, they had doubled their stake and bought a total of 30% shares at the club. With this 30% stake, Glazers were eligible to complete the full takeover of the club.
In June 2005, Glazers came close to their full takeover as they had bought 98% shares of the club. By slowly progressing to buy each stake Glazer family finally completed the full takeover of the club for a final value of around $1.5 billion. It was accumulated that Glazers bought 259,950,194 shares at the final valuation of the club for the takeover.
The Glazers’ profits from selling 25% of Manchester United and dividends
For almost two decades, the Glazer family’s ownership of Manchester United has been a polarizing topic. From leveraged buyouts to fan protests, the saga has been filled with financial anxieties and controversies. However, with the recent 25% stake sale to Sir Jim Ratcliffe, a new chapter unfolds, one where the Glazers walk away with significant profits.
🚨🗞️ | The Glazer family will have pocketed more than £1.3 billion from share sales and dividend payments at @ManUtd once Sir Jim Ratcliffe’s deal for a 25 per cent stake in the club is formally completed. [@TeleFootball] 🔴⚪️#MUFC | #UtdXtra pic.twitter.com/5WsZJOKFsN
— UtdXtra (@Utd_Xtra_) December 27, 2023
Since their 2005 takeover, the Glazers have raked up over ÂŁ465 million through dividend payments. While the controversial top of the club’s debt burden arises, these dividends represent a substantial return on their initial investment.
Ratcliffe’s INEOS Sports group investment meant that Manchester United are currently valued at a staggering $6.6 billion, with their purchase of 25% netting the Glazers approximately $1.5 billion after transaction fees and minority shareholder buyouts.
Combining the sum from the stake sale and the accumulated dividends, the Glazers’ total profit from their Manchester United ownership stands at a hefty over $1.6 billion. It’s a figure that underscores the financial gain they’ve enjoyed, despite the fan criticism and financial complexities surrounding their tenure.