Manchester United: Is Qatari Takeover Good Move for Club?

Zaakir Hoosen

Once again, rumors make there way regarding a possible takeover at Old Trafford, with the Qatari royal family at the top of the list as possible buyers. 

In recent months, Qatar has shown their hand in terms of spending power from the wealthy Middle East region. They are already involved in a number of footballing deals.

Some of the Known Qatari Connection Deals

FC Barcelona (Spain) - Shirt Sponsorship, a deal worth £125m (€150m) over five years by Qatari Foundation (founded by Sheikh Hamad bin Khalifa Al-Thani, the emir of Qatar).

Malaga FC (Spain) - Purchase of club by Sheikh Abdullah bin Nasser bin Abdullah Al Ahmed Al Thani, a member of the Qatar royal family but a distant relative of the the ruler (Sh. Hamad). The Reported price of the club was around €36 million. Sh. Abdullah was also amongst the names mentioned earlier this year to bid for Rangers FC.

Paris Saint-Germain (France) - In May 2011, Qatar Investment Authority purchased 70 percent of the club.

Speculative Investment Deals

Everton FC (England) - Between 2008 and 2009, there were rumors surrounding a possible £200 million takeover deal by QIA (Qatari Investment Authority)

Robert Cianflone/Getty Images

Manchester United FC (England) - In 2010, £1.5 billion bid was said to be on the table by Qatar Holding, although the Glazer family denied this and said the club was not for sale.

English-based Club Deals

In recent years, we have see the financial power of the Middle East overshadow that of their European counterparts, with the takeover of Manchester City FC by Abu Dhabi United Group Investment and Development Limited for around £200 million.

The takeover has since been positive for the club, who are challenging for the title and have entered the European Champions League, although it should be said that hundreds of millions have been spent in bringing the best players available to the club.

Sulaiman Abdul Kareem Mohammad Al-Fahim's (Dubai) purchase of Portsmouth FC is an example of how such takeovers could work negatively towards the club.

Chelsea FC (England) - In 2003, Russian billionaire Roman Abramovich took over the club, making some massive transfers and bringing then Porto coach Jose Mourinho to handle on-field duties. Chelsea has since won three Premier League titles, three FA Cups, two League Cups and two Community Shields. 

Having understood all of the above, it's clear that takeover deals are both good and bad for the club. Chelsea are the best example. With a mastermind of a manager in Jose Mourinho, who controlled all on-field issues and made the changes he wanted, the club was successful. But once he left, managers with less influence have failed to capitalize on an excellent squad.

Currently we ride on the idea that the proposed £1.6 billion deal by Sh. Hamad to take-over Manchester United is a rumor and false.

The most recent denial of any takeover:

"That's not true," said Sheikh Hamad in an interview on the Qatar-owned Al Jazeera channel.

"We announced a few weeks ago that we did not negotiate that. A lot of people talk about 'Qatar now will buy this, they will pay that.' This also makes the price good for anything that will be sold."

But if such a deal does go ahead, millions of Manchester United fans must hope that Sir Alex Ferguson stays in charge at Old Trafford for a long time.

His presence at the club could be the only positive light in such a deal, ensuring the club's financial woes are dismissed and having necessary investment "ONLY IF NEEDED." The club must still utilize the youth structure and balance financial power with quality, experience and consistency on the field.

In my opinion, looking at the current financial situation at United, we can see off-the-debt crisis once the planned flotation goes ahead, which could bring in an estimated £600 million for only 25 percent of the club.

Looking at those numbers, it could also increase the current market value of the club well above £2 billion.

So, should the Glazers look to sell?

   

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