Manchester United is probably worth billions less than what its owners want to sell it for, study suggests

• Manchester United could be worth billions less than its rumored asking price, according to FT analysis.
• The club's owners, the Glazer family, reportedly want at least $6 billion to sell the team.

The race to buy Manchester United is heating up, with prospective bidders for one of the world's biggest soccer clubs readying multi-billion dollar offers.

But analysis by the Financial Times suggests the club, whose Carabao Cup victory Sunday helped secure its first silverware since 2017, could be worth billions less than its owners think.

United's American owners, the Glazer family, are reportedly looking for at least $6 billion to part with the club, per The Athletic. That's a big premium on the club's market capitalization of $3.7 billion, and its enterprise value — market cap plus net debt — of $4.5 billion.

Analysis by the FT, though, suggests the club's value is more likely to be around $1.6 billion.

The publication looked at earnings multiples of previous sales of other clubs, cash flow, and revenues compared with its competitors to determine its own assessment of United's fair value.

Two parties have formally expressed interest in bidding for United: British billionaire and lifelong fan Jim Ratcliffe and Qatari Sheikh Jassim bin Hamad al-Thani. The FT reported Saturday that both parties had been urged to increase their offers if they wanted to acquire the club.

The Glazers are being advised on the sale by investment banking firm Raine Group. Activist investor Elliott Management has reportedly offered to help finance bids for the club, per Reuters.

Man Utd's share price has been largely stagnant during its time on the New York Stock Exchange. News that it was planning a sale in November saw shares jump more than 60% in the space of a week, while initial news of a Qatari bid boosted shares by 18%.

The Glazers saddled the club with hundreds of millions of dollars of debt when they acquired it in a leveraged buyout for around $800 million in 2005, while a need to invest in the club's infrastructure adds further to costs for prospective owners.

The FT said United's future value could be elevated by the growth of non-fungible tokens and sports betting, which is growing in the US. Its valuation also possibly ignores the intangible value of a once-in-a-lifetime opportunity to acquire one of the sport's most iconic franchises.