United: Qatari bid never showed proof of funds

Sheikh Jassim bin Hamad Al Thani and his team repeatedly failed to provide proof of funding during their negotiations to buy Manchester United, according to documents the club submitted to the United States Securities and Exchange Commission (SEC).

The Qatari businessman was engaged in talks between February 2023 and October 2023, when he withdrew from the process, but according to documents published on Wednesday, he did not provide “customary financing commitment letters.”

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The SEC is an independent agency of the U.S. government that protects investors and helps maintain market fairness.

ESPN has attempted to contact Sheikh Jassim for comment.

It was announced on Christmas Eve that British billionaire Sir Jim Ratcliffe has reached an agreement to buy a 25% stake for £1.3 billion ($1.65bn), more than a year after the team’s owners, the Glazer family, revealed their intention to undertake a “strategic review” in November 2022. Ratcliffe’s deal is set to be ratified next month.

A filing on the SEC detailing United’s search for either a new owner or new investment has showed that Raine, the merchant bank handling the process, initially entered into 26 nondisclosure agreements with interested parties.

Following months of talks, Sheikh Jassim officially informed United of his intention to withdraw on Oct. 15, 2023, with sources close to the bid citing “frustration” that the Glazers’ valuation of the club was “unrealistic.”

Sheikh Jassim’s bid was for 100% ownership while the SEC documents show that Ratcliffe began to pivot towards an offer to buy a minority shareholding, rather than majority ownership, in the summer of 2023.

The deal will see Ratcliffe and his INEOS team, headed by Sir Dave Brailsford and Jean-Claude Blanc, assume control of football operations once the agreement officially gets the green light.

Ratcliffe will get first refusal if the Glazers decide to sell more shares, although there is no formal pathway for the INEOS CEO to take control at Old Trafford.

The Glazers, who remain majority owners, can also force Ratcliffe to sell his shares following an initial 18-month period if a new buyer emerges.

Meanwhile, United have agreed to a deal with Manchester Metropolitan University’s Institute of Sport that will allow access to the university’s research studies to help the performance of their men’s, women’s and academy teams.

United football director John Murtough said: “We are constantly striving to be at the forefront of innovation and advancement in football performance, and this initiative will reinforce those efforts.”