Ratcliffe to the rescue at Manchester United?

Executives have gathered in London for two major conferences, Due Diligence Live and Leaders Week, to discuss the future of broadcast rights in the sports, media, and finance industries. However, the current climate suggests some challenges lie ahead. Serie A clubs have delayed a decision on bids for domestic broadcast rights, while the auction for Ligue 1 rights has collapsed. This uncertainty reflects the transition from traditional linear broadcasting to streaming-based services. CVC Capital Partners, with investments in European sports media rights, acknowledges the turbulence of this transition. Investors and team owners are closely watching the situation, as the Premier League and Bundesliga rights will soon be up for grabs. In this week’s update, we explore the ongoing saga of the potential sale of Manchester United and the future of the WNBA after its record-breaking season. Keep reading for more details.

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Are we nearly there yet? United sale enters Fergie time

Sunday marked Sir Jim Ratcliffe’s 71st birthday. The British chemicals billionaire, rumored to be involved in the sale of Manchester United, received video messages from club legends David Beckham and Sir Alex Ferguson. After a year of speculation, the sale of the world-famous football club is inching closer to a conclusion. Sheikh Jassim bin-Hamad al-Thani, United’s Qatari suitor, has pulled out of the running, citing the Glazer family’s inflated valuation as the reason. However, Sir Jim Ratcliffe, founder of Ineos, is nearing a deal to acquire a 25% stake in the club. This deal would value the club at a record-breaking $6bn to $6.5bn. Pending board approval, Ratcliffe’s arrival would be followed by a capital raise to inject new funds into the club. Ratcliffe and Sir David Brailsford, Ineos sporting director, would join Joel Glazer on a committee overseeing football operations. This arrangement allows Ratcliffe to lead the club’s revival, while the Glazers can maintain control and receive a substantial payout. While fans remain divided, this potential change offers a glimmer of hope for the club’s future.

Line chart of Share price on NYSE ($) showing Manchester United shares slide as full takeover hopes fade away

Shareholders of Manchester United listed on the New York Stock Exchange might be wondering how this potential deal affects them. The stock, which was valued at $13 prior to the Glazers’ announcement of a strategic review, surged to nearly $27 when rumors of a Qatar bid surfaced. Since then, the stock has experienced fluctuations and has declined over 10% this week. Currently priced at $17.50, it is at its lowest since the strategic review began. While Ratcliffe’s high valuation is promising, there are still unanswered questions regarding the details of his offer. Investors hoping for a full buyout might be disappointed, and there is a possibility of further dilution if additional shares are issued. Since United’s commercial prospects are not solely tied to on-pitch performance, minority investors may not be greatly affected by any significant changes. However, it is worth noting that US takeover laws permit sellers to demand very little from buyers, especially when controlling shareholders possess over 90% of voting rights. Shareholders who purchased stock would have been aware of this from the start.

What the newest era of superteams means for the WNBA

The WNBA concluded its season with an exciting game four of the finals between the New York Liberty and the Las Vegas Aces. Although the Liberty, in their first finals in over two decades, had a chance to force a fifth deciding game, they fell short, and the Aces secured their second consecutive championship in 21 years. This season had generated anticipation for a superteam showdown between the Aces and the Liberty, both exemplifying the modern game. The Aces, previously based in Utah, underwent several relocations before finding their home in Vegas in 2018 under the ownership of Mark Davis. The Liberty, previously owned by Jim Dolan, were acquired by Joe and Clara Wu Tsai and relocated to Brooklyn. These teams have received significant investments, boasting top talent, champion coaches, and state-of-the-art training facilities. They represent a new wave of women’s sports owners who are not only fostering women’s professional basketball but also envisioning a more inclusive future for the sport.

Scoreboard recently interviewed Clara Wu Tsai, owner of the Liberty, to discuss this new era, especially in light of substantial expansion fees and valuations in women’s football. The interview provides valuable insights into the future of the WNBA. While the Liberty did not achieve their ultimate goal of winning the basketball trophy for New York City, their performance in this year’s finals is still significant for the industry. Game three in Brooklyn set a new attendance record, with TV ratings up 36% compared to last year. This increased popularity positions the league well for its upcoming negotiations on media rights contracts. The current agreement with ESPN expires in 2025, and the league’s growth indicates the need for a more valuable contract. In the meantime, the WNBA has signed a three-year, $39 million deal with Scripps’ Ion cable channel to broadcast Friday night games and provide additional financial support to the league. The WNBA’s rising popularity underscores the significance of live sports for the cable industry, especially as streaming platforms gain prominence.

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Rachel Adams

Rachel Adams is your WNBA insider, delivering comprehensive coverage of women’s basketball. With a commitment to highlighting the talent and achievements of WNBA players, she provides game analysis, player profiles, and inspiring stories from the league.