Manchester United’s claim they would pass £1 billion in revenue by the end of the financial year for 2027 proved to be the breaking point for Sheikh Jassim bin Hamad Al Thani’s bid for the club, according to The Athletic.
The Red Devils’ billion-pound revenue forecast was deemed highly ambitious given their recent figures.
Man United announced record Premier League revenues of £648.4 million for the 2022-23 campaign yesterday, with the £627m they generated in 2018-19 their previous highest revenues.
Their revenue came in at £583.2m in 2022 and £494.1m in 2021, and while they have posted projected revenues of between £650m and £680m for the fiscal year to June 2024, Sheikh Jassim and his team were not convinced it can reach £1bn by June 2027.
An enhanced broadcast rights package due to the new format of the Champions League kicking off next season and the introduction of the FIFA Club World Cup would see the Old Trafford club and their counterparts experience increased commercial and broadcast revenue and matchday income.
However, their bidders felt making £1bn would also require vastly improved on-field performances.
Companies are mostly ambitious when pitching to investors and buyers, but the fact that the Glazers have resisted selling their whole shares suggests they see untapped financial growth at the club.
Sheikh Jassim always wanted a full takeover, but it is Sir Jim Ratcliffe who is expected to do business with Man United owners after offering £1.3bn for 25% of the club.
The Qataris tabled over five offers for Man United, with their last bid worth more than £5bn, but it was short of the around £6.5bn the Glazers want, and both parties have since gone their separate ways.
It remains to be seen whether Ratcliffe will be successful with his offer, but the prospects of a pathway towards future majority control could be on the cards after control of the club’s football operations is yielded to him.
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