On March 23, there was an announcement that made people in Finland, England and many other countries rub their eyes. Finn Thomas Zilliacus said that he had made a purchase offer for one of the world’s biggest football brands, Manchester United.
Yesterday, that is, the 12th of April, Zilliacus announced on Twitter (you will switch to another service), that he will not participate in the third bidding round. According to Zilliacus, the bidding race has turned into a farce, where the Glazer family, which owns United, is trying to maximize sales revenue at the expense of the club.
“My offer is valid”
Yesterday’s Tweets by Zilliacus were reported both in Finland and internationally as if he had completely withdrawn from buying United. This is the first thing he wants to clarify in the interview.
Zilliacus says his tweet has been misunderstood.
– I will not participate in the third round. After all, I have submitted an offer in the second round. It is still valid. I have given a concrete price offer and I am ready to pay a premium on top of it.
According to Zilliacus, the premium is determined after he has received all the information that the other bidders also have and when he has met the sellers in order to be able to advise on the final price.
Zilliacus emphasizes that he has not withdrawn, but in his opinion, the third round of offers is completely pointless.
– Time passes, and it leads to the fact that whoever buys the club has no more time to properly prepare for next season. It’s completely absurd.
An English billionaire has publicly spoken about submitting an offer Jim Ratcliffe and the Qatari sheikh Jassim bin Hamad al-Thani. British newspaper The Telegraph has reported (you switch to another service)that as many as eight parties would participate in the tender competition.
“Not worth six billion”
Zilliacus submitted its bid through its Singapore-registered investment company XXI Century Capital. After the first bid, Zilliacus appealed to the other bidders to join forces.
– This way we can channel money to the club for everything needed, instead of paying extra billions to buyers in a mad rush to get each other out, Zilliacus wrote.
Later, Zilliacus said that he did not get a response from others, so XXI Century Capital increased its offer.
The Glazer family bought United for 790 million pounds in 2006. Now the price tag has been set at six billion pounds, about 6.8 billion euros. It would be the highest price paid for a sports club.
In interviews, Zilliacus has referred to the confidentiality agreements he signed, but he assures that his offers have been competitive.
– My offer is on the same level as other offers. My group is ready to offer much more. However, the starting point must be that there must be economic sense involved.
Zilliacus says that he still hasn’t had the opportunity to familiarize himself with the club’s detailed visions for the future, such as possible sponsorship agreements.
– I think the club is not worth six billion pounds. Without more information, I’m not prepared to offer that kind of price and I doubt anyone else is either.
Earlier, Zilliacus said United’s current market value is 3.6 billion euros.
“This is not an ego trip”
In March, Zilliacus made headlines around the world as a surprising buyer candidate. The offer was also laughed at. Zilliacus has emphasized in interviews, even now, that it is not a publicity stunt, nor his own ego.
In any case, in the public eye, Zilliacus’s chances have been widely dismissed. What does he think of his chances now?
– Unfortunately, it seems that the Glazer family cares little about the club. Apparently, the bank handling the sale has said that we will handle a certain price for you. That price is clearly beyond realism.
Zilliacus fears that the club can remain in the possession of the Glazers.
– As for my own opportunities, this is not an ego trip, but I am ready to make an offer with someone else. That offer is still on the table.
Zilliacus adds that if Ratcliffe or Jassim agrees to Glazer’s excessive asking price, he can be part of the deal.
Zilliacus points out that his group of investors has been preparing the purchase of the football club for the second year. in Helsingin Sanomat he told (you switch to another service)that he has built connections with football and financial advisors and, in addition, his company has relations with “two of the world’s largest investment banks”.
Yelle Zilliacus says that her group of investors is the result of decades of business work. There are Asian, US and European investors who are interested in good investments, not necessarily football, and don’t want their names in the public eye.
– I believe that Manchester United would be a good investment target, as long as the price tag is right.
ManU’s share sale is managed by the Glazers’ authorization by the American investment bank Raine Group, whose task is to “examine strategic alternatives”, so the sale is only one option. According to public information, Jassim aims for 100% ownership of United, Ratcliffe and Zilliacus for 69% acquisition.
“It’s amazing that the clubs haven’t realized these opportunities”
Zilliacus has seen his offer as a trump card to engage fans. When Zilliacus made his offer, he said his plan was to sell half of his stake to the fans. Zilliacus declared that all sports clubs should eventually belong to its supporters.
Zilliacus has emphasized digital and how clubs could make significant returns through their broad supporter base. with United is estimated to be (you switch to another service) 659 million fans, including more than 300 million in the Asian market.
Today, Zilliacus tweeted that his company has developed services for a club that generate $400 per year per participating fan.
Zilliacus does not reveal which club he tweeted about, because “someone could try to copy the idea”. However, he says it is about a club that is still playing in the Champions League playoffs.
In Zilliacus’ company’s soccer game, you can win access to the club’s VIP enclosure to watch the match with the club’s former stars.
– This is a game where the chances of winning improve by buying different services during the game. This is very lucrative, which is understandable since it’s about things that can’t be bought. It is amazing that the clubs have not realized these possibilities.
Of course, another question is how all the fans would be motivated to spend on their support.
– This game is just an example. It’s about giving fans something they’re willing to pay for. It’s not a question of financing fans with tricks.
We are already looking at other options
Thomas Zilliacus worked at Nokia from 1980 to 1993, among other things as Nokia’s regional director for Asia and the Pacific. He told last spring in Helsingin Sanomat (you switch to another service), that he has become wealthy through real estate deals, shares and starting companies. In sports, he has acted as the chairman of HJK and co-owner of the Jokers, as well as founding the Helsinki arena Harry Harkimon with.
Read more: The defection of Nokia’s communications boss to the entertainment industry was sensational – this has been the business path of Thomas Zilliacus, who offered Manchester United
As it turned out in this story, Zilliacus has mapped the acquisition of football clubs before. When asked about his future plans, if United remains a dream, he brings it up Thaksin Sinawatrawhom he describes as his “good friend”.
Zilliacus already got to know Thaksin, who later served as Prime Minister of Thailand, while working for Nokia during his Asian years. Thaksin bought Manchester City in 2007. The following year, City came under UAE ownership.
– City was a really small club compared to United. Now City is perhaps the best in the world. This is the result of long-term work. It is possible to build a global brand from any club. Of course, there are other options that we are already looking at.