Manchester United, Liverpool may be buyout targets for Qatar fund

Manchester United, Liverpool FC or Tottenham Hotspur are among England’s top Premier League (EPL) clubs being targeted by Qatar, the West Asian nation buoyed from hosting the most expensive World Cup ever.
 
Qatar Sports Investments (QSI) chairman Nasser Al-Khelaifi recently held conversations with Tottenham Hotspur chairman Daniel Levy over the possible purchase of a stake in the London-based club, according to a person with knowledge of the meeting. QSI is also considering both a full takeover or a stake in rivals including Manchester United or Liverpool FC, added the person, who asked not to be named. 
 
QSI’s deliberations are ongoing and may not lead to a deal, and would also likely mean a potential sale of its flagship club Paris Saint-Germain.

 

QSI has decided to consider one investment in the EPL after hosting the World Cup. The move is both a hedge against investments in less high-profile leagues like Portugal, and due to the EPL’s continued growth and profile.
 
Any potential deal — either an outright takeover or a minority stake — would further cement Qatar’s strategy of investing in sports assets, in part to boost the country’s profile and also to invest its vast wealth from natural resources. Qatar has been buying sports assets, including the high-profile takeover of PSG, a stake in Portugal’s SC Braga and the development of sports-focused beIN Media Group.

 
Tottenham, which has developed a state of the art new stadium with a capacity of over 60,000, was valued at just under $2.15 billion, according to Football Benchmark. Rival Chelsea FC sold for $2.69 billion last year to a US consortium.
 
Manchester United shares have been on a strong run since last July when they were trading at only $10.41. They closed yesterday at $23.11, giving the equity a market capitalisation of around $3.8 billion.
 
It is unclear whether QSI have held deal talks with other EPL clubs, and any potential bid is currently at an early stage. CBS Sports first reported the meeting between QSI and Tottenham.

 
The Premier League already has two clubs with West Asian owners, with Manchester City owned by Abu Dhabi-based City Football Group and Newcastle United recently acquired by a consortium backed by Saudi Arabia’s wealth fund who are also building out their sporting assets.
 
“There’s been a growing interest in English Premier League clubs considering the sale of minority stakes,” says Adam Sommerfeld, managing partner at Certus Capital Partners. “The clubs have watched Manchester United and Liverpool begin processes and are now reacting by leaving themselves open to talks with investors.”
 
The trend of multi-club ownership is gaining momentum, with around 200 teams owned by football groups that own or have investments in more than one team. City Football Group now owns 10 clubs outright, including Manchester City. Consumer drinks brand Red Bull back a group that includes Salzburg and Leipzig, and Miami-based 777 is expanding its footprint with clubs including Genoa, Red Star Paris and Hertha Berlin. John Textor’s Eagle Football Holdings owns stakes in Botafogo, Olympique Lyonnais, Crystal Palace and RWD Molenbeek.

 
UEFA rules currently prohibit individuals or legal entities from having control or influence in more than one club entering into one of their European competitions, like the European Champions League. However, Red Bull Salzburg and RB Leipzig were allowed to meet each other in UEFA’s Europa League in 2018 after they showed there was clear separation between the two teams, despite both being part of the Red Bull group.