The flexible February 17 deadline for initial offers is fast approaching. Musk better use his Neuralink prototype and start thinking about this one.
The most serious bidders for the club are expected to be Ineos owner Jim Ratcliffe and a group of Qatari investors. But would it be such a bad idea for Elon Musk to take the plunge? Let’s investigate some reasons.
Why would Elon Musk buy Manchester United?
The first one comes down to cold, hard cash. Manchester United’s current owners, the Glazer family, are reportedly seeking at least £5bn for the club, but a September 2022 Forbes valuation put the club’s value at $4.6bn (£3.7bn). ).
According to recent reports, Musk is considering making a £4.5bn offer. And he’s one of the few notoriously public figures who could spend that kind of money.
He paid $44 billion for Twitter in October 2022 with the help of some investor friends, including Saudi Arabian billionaire Prince Waleed bin Talal, who was in line to buy the club in 1999.
Though £4.5bn doesn’t sound like much when you consider that Elon Musk’s personal fortune has shrunk by roughly £152bn since November 2021. The fall made Musk the Guinness World Record holder for the man who he experienced the largest drop in his personal fortune. in History.
Sport as a reputation builder
You can also do these big moves while you still can. But perhaps Manchester United and ownership of the soccer club could turn things around for Musk and alter his public image for the better.
Seeing small acts of foolishness and stupidity on his part has been a unique experience. For example, after smoking weed on the Joe Rogan Experience video podcast in 2018, Tesla shares fell 6%. There were calls for him to step down as chief executive, that his personal instability was a wrong match for the automaker.
That hasn’t really changed, has it? However, ownership of the club has only raised the public profile of Hollywood actors Ryan Reynolds and Rob McElhenney, who acquired Wrexham AFC in 2021 for £2 million.
Can’t you imagine Elon Musk on the sidelines, cheering on his team with the passion that drips from actors Reynolds and McElhenney? OK, neither do we, but there’s another angle.
The power of sponsorship
What Jadon Sancho would look like playing for Elon Musk’s Manchester United
/ it is compoundMusk owns markings that are perfect for a spot on a Manchester United jersey. Twitter and Tesla are two of the most recognized brands in the world.
In 2012, Manchester United signed a seven-year, $599 million contract with Chevrolet that got the company logo on the players’ jerseys. The company withdrew from Europe entirely a year later. At least you can buy a Tesla in the UK – it fits the bill.
These brands could also use a Qatar quality sports car wash cycle. A monsoon of negative headlines on Twitter has driven advertisers away in droves, cutting the platform’s revenue by 40%, and don’t forget that Musk only took over Twitter in late October.
Tesla’s stock today is only 60% of what it was in September 2022, thanks in part to the reputational damage caused by Musk, and its recovery could work with a shot to the arm.
What could that do? Famous soccer players driving Teslas. This is also one of the few ways that Musk’s acquisition of Manchester United could have a positive impact on society.
If some of the footballers who usually drive around in giant Range Rovers or luxurious Mercedes Benz sedans – if not something more exotic – switched to electric, perhaps Tesla could further accelerate the public’s fight with the internal combustion engine. Although £4.5bn is a lot to spend on a Tesla ad campaign, it might not be the strangest move Musk has made in the last 12 months.