Takeover guru issues £7bn Man United claim after official Sir Jim Ratcliffe news
A £7billion takeover price is “realistic” from the Glazers as they continue their search for potential Man United investors.
That is the view of finance expert Dr Dan Plumley, who spoke exclusively to Football Insider about how to value a majority takeover of the Red Devils.
The Times reported last Tuesday (17 January) that Britain’s richest man Sir Jim Ratcliffe has officially registered his interest in a majority takeover of Man United.
The Glazer family have owned a majority stake in the club since 2005, but put it up for sale late last year.
It is reported that their current valuation of the club sits around £7billion – a fee that dwarfs the £2.5bn paid by Todd Boehly’s consortium for Chelsea last year.
But Plumley believes the valuation is fair considering the “intangible” factors that inevitably inflate the price of a takeover.
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“When looking at takeover values, we have to consider the intangible factors to a football club,” Plumley told Football Insider’s Adam Williams.
“Looking at the Chelsea takeover, based on the finances on show it’s probably a £1.5bn club.
“But then we have all the things we can’t measure like the fanbase, the history, the badge and the brand.
“They all cause values to creep up above true market value.
“Valuation models place Manchester United above Chelsea anyway – around the £4.5bn mark – but then the other inflation factors such as fanbase, history, Old Trafford and the badge take it further.
“I think a £7bn valuation is realistic to be honest.
“It’s also interesting that Sir Jim Ratcliffe has played his hand early this time after going in late for Chelsea.”
In other news, Football Insider sources reveal Man United youngster Charlie Savage is undergoing medical at Forest Green