Here’s why the UK government’s senior officials are raising ‘concerns’ over Manchester United’s potential Qatari takeover

UK Government's senior officials reportedly "concerned" about Manchester United's take-over bid by Sheikh Jassim bin Hamad al-Thani

Here’s why the UK government’s senior officials are raising ‘concerns’ over Manchester United’s potential Qatari takeover

Senior government officials flag concerns about Man United's Qatari bidder Sheikh Jassim (Image Via- Google)

Senior Government officials working in football governance have reportedly flagged concerns privately over Manchester United bid from Qatar. The take-over bid has been made by Sheikh Jassim bin Hamad al-Thani, the chairman of Qatar Islamic Bank. Sheikh Jassim is one of the leading contenders to take over the Premier League giants, with the Qatari bidder facing competition from the Ineos group led by Sir Jim Ratcliffe. Government officials reportedly voiced concerns over Sheikh Jassim due to previous regulatory failings at the UK subsidiary of the QIB. Sheikh Jassim has been the chairman of the QIB since 2006.

The Prudential Regulation Authority fined the UK subsidiary £ 1.4 million back in 2016. They cited ‘significant failings in assessing, maintaining and reporting to the regulator on its financial resources‘ from June 30 in 2011 to December 31 in 2012. Andrew Bailey, the then CEO of the Prudential Regulation Authority and now Bank of England governor, said the QIB had ‘failed to meet some of the most basic regulatory standards‘. QIB’s failures in this regard were serious. This is why we considered it appropriate in this case to impose a fine.

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The Prudential Regulation Authority noted at the time that the QIB had undergone ‘significant restructuring‘ and ‘committed resource to matters of governance, capital monitoring and reporting systems and controls‘ to avoid a similar breach.

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While the QIB is not expected to have involvement in Sheikh Jassim’s bid for Manchester United. Reports suggest that government officials could pressurize the Premier League to scrutinize any potential takeover by the Qatari.

The UK Government is pushing for improved governance within football following the completion of a fan-led review. A white paper was reportedly published by the Government in February. It was about outlining plans for an independent regulator. Individual clubs’ financial sustainability is among the key areas the regulator would cover. New tests for prospective owners and directors of football clubs would be introduced.

Sheikh Jassim and Sir Jim Ratcliffe both submitted their revised bids last month for Man United to the merchant bank Raine. The bank has been overseeing the sale of the club. The bids, reportedly worth £5 billion, were submitted after both parties were given an extension beyond the initial ‘soft’ deadline. Raine Group has received a number of offers for a minority stake in the club, which would allow the Glazer family to redevelop or rebuild Old Trafford and the club’s training ground while retaining overall control.

One of those offers has come from former AC Milan owners Elliott Investment Management. They had previously offered to fund those seeking to buy the club. Man United owners, the Glazers, are reportedly seeking a sum north of £6bn to sell the club. 

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Manchester United “take over” becomes a three-way bidding war as Finnish Entrepreneur Thomas Zilliacus joins the race: Report

Thomas Zilliacus reportedly made offer for Manchester united take over
Thomas Zilliacus (credit: Social media)

A representative for Sheikh Jassim said they have reportedly put in a revised bid. Ratcliffe put in his second bid after extended deadline. It followed Finnish entrepreneur Thomas Zilliacus stating he has submitted a bid to buy the Old Trafford club. Zilliacus wants to buy half of the club with the other half bought by fans. They will be part of club decision-making.

Zilliacus reportedly claimed he had also increased his bid for United overnight. The Glazer family announced they were considering selling the club in November. They bought Manchester United for £790m in 2005. The Americans have established a valuation of £5-6bn for United. Ineos wants to buy the combined Glazer shareholding of about 69%. But the Qataris are targeting 100% of the club. The only publicly declared bidders were Ratcliffe and Sheikh Jassim. But Zilliacus has now reportedly announced his offer.

Zilliacus in an interview, said, “Any sports club ultimately should belong to its fans. My bid is built on an equality with fans. The current development, where billionaire sheiks and oligarchs take over clubs and control them as their playgrounds, is not a healthy trend. The current market value of the club is just under £3.17 billion. That means that if every one of the fans of the club would join in buying the club, the total sum per fan would be less than $6. My group will finance half of the sum needed to take over the club. And we will ask the fans, to participate in the other half. If every fan joins it means less than $3 per fan.”

Zilliacus plans to give fans a say through an app from which they can “participate and cast their vote when deciding on footballing matters relating to the club”. US investment company Elliott has also reportedly made an offer to purchase a minority stake. This bid is irrespective of who ends up owning the club.

Zilliacus is the founder and chairman of the new social media group novaM Group. He wants to buy United through XXI Century Capital. Zilliacus’s holding company owns this investment firm.

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