Billionaire entrepreneur Elon Musk has become one of the most successful business leaders in history. From SpaceX, Tesla and now Neuralink, Musk has transformed how technology and business interact. This has led many to wonder if he is the right figure to buy and change the landscape of soccer team Manchester United (MU) — one of the most valuable sports franchises in the world.
Manchester United has had a long and celebrated history, ranging from the glory days of Sir Alex Ferguson in the 1990s, to the less successful José Mourinho era, and now with Ole Gunnar Solskjær. Half of MU is owned by the Glazers, a family from Florida which acquired Manchester United in 2005 with a leveraged buyout which led to heavy debts that have been a burden for the club ever since. Fans have protested for years about their involvement and the lack of success the team has undergone in recent years.
One potential bidder to take over MU from the Glazers is Elon Musk — and his interest hasn’t been a secret. In October, Musk tweeted “#MUFC” — MU’s official hashtag — in response to a fan question. In addition, as part of his January Tesla earnings call, Musk stated that “There’s a good chance I do something involved with football” — a statement widely-interpreted as an indication of interest in the club.
The idea of Musk buying MU has the potential to create a hugely successful and innovative soccer club. With his financial backing, MU could make buzzworthy moves in the transfer market, as well as potentially develop high-tech products to take the game to the next level. As mentioned earlier, Musk is the founder of Neuralink – a medical related company which develops brain-computer interfaces – and with that technology could assist players to get back on the pitch faster from injuries.
However, there is one huge obstacle between Musk and MU — money. Reports suggest that the Glazers are asking for a jaw-dropping sum in the region of $5 billion dollars for the club. Factor in the potential debts from the leveraged buyout and the total cost could be even higher. Any potential deal could also be blocked by the Premier League, if the existing ownership structure isn’t deemed appropriate.
Given Musk’s background and success as an entrepreneur as well as investor, it would come as no surprise if he were to make a play for one of the most iconic sports franchises in the world. Even though it may be too soon to confirm what the billionaire plans to do, but it’s clear the story of MU could be changed forever – depending on Musk’s decisions.
How will buying MU benefit Elon Musk?
Though it may be a difficult task, with the potential buying of MU, Elon Musk could have a number of advantages and opportunities. Firstly, he could potentially bring a new innovative culture to the club. Using his technology expertise and entrepreneurial abilities, he can give the team an edge by optimising current tactics and transfer strategies. By incorporating his experience from Tesla and other technology companies, he could open up MU to a variety of potential sponsorships, marketing deals and other commercial opportunities, which would be a great way for the team to gain revenue.
Moreover, a Glazer-Musk merger could benefit MU in terms of success on the pitch. UEFA is constantly looking to curb financial fair play, and with Musk, the team could gain an advantage in adhering to these regulations, due to his immense wealth. He could continue to invest in the club and spend big on his desired players while also ensuring the team remains in line with the FFP regulations.
In a game where trophies are ultimately judged by success on the pitch, big money signings could prove fruitful. However, this would not guarantee the team success. Musk will need to make the right decisions and buy the right players, in order to reach the higher echelons of Premier League table and European competitions. With the right coaching staff, quality transfers and team building, MU could return to its former glory.
Social Impact
The Glazers have been heavily criticised for their handling of MU’s situation since they taken over, due to their debts and lack of investment in the team. An acquisition of MU by a successful entrepreneur like Elon Musk could potentially lead to a new era of success, as well as giving the team more economic stability. An influx of money could provide youth academies with better infrastructure and aid in creating a strong academy system for the long term for the club, so that no matter who is in charge, MU can depend on homegrown talent.
It could not only benefit MU, but the entire city of Manchester and its people. After a difficult few years with the pandemic, Manchester could see an economic upswing from the potential arrival of Musk. Additionally, if the team starts to win trophies with regularity, it could drastically improve the mood of the city as a whole and bring about a feel-good atmosphere.
Furthermore, there will be a social comment, even if Musk isn’t the owner of MU. Regardless, it will open doors for other aspiring business leaders and investors to become involved in the world of sports acquisitions – a move that will only benefit the game as a whole.
Will Manchester United Board Approve Elon Musk?
Despite the potential pros, MU’s board may be hesitant to make Musk the owner. Even though his immense wealth gives him the financial capability to take over, his eccentric nature could be seen as a barrier, especially in a traditional industry such as soccer. In addition, with the recent ground-breaking move to the world’s first fan-owned football club Barcelona via its founding entity, it could be seen as a questionable move for MU to be taken over by a traditional investor.
However, the debt situation at MU had gone out of control and this may be the way forward for the board. Providing that board members agree to his approach and strategy, Musk could become a successful owner. His leadership style and entrepreneurial ethos may be the breath of fresh air needed for MU to regain its glory days.
Despite the obvious financial advantages, the most important factor will be his plans for the team on and off the pitch. The team must remain competitive and in line with UEFA’s financial fair play guidelines, and MU must also continue to remain in the Premier League standings. With the right balance and commitment, Musk could change the outlook of MU while also gaining success in the process.
The Financial Side of a Buyout
Reports suggest that the Glazers are asking for an astronomical sum of $5 billion to purchase MU. Furthermore, added to the debts from the leveraged buyout, the total cost could be even higher. Musk is estimated to have a net worth of $167 billion, as of January 2021, so the finances shouldn’t be of a major concern.
However, the billionaire entrepreneur’s wealth will not be the deciding factor in a potential buyout. Any deal may require approval from the Premier League, especially if the existing ownership structure isn’t deemed appropriate. Though it remains to be seen what Musk does with his interest, the idea of him funding the club and changing the landscape of MU for the better could be a tantalising prospect for fans of the club.
Will Elon Musk Get Support From MU Fans?
Though the possibility of Musk being involved in a takeover has excited some MU fans, there are still apprehensions. If a sale did go through, Musk would need to win over the doubters and convince them of his plans, in order to get their full support.
It would take a while to turn the team around and to restore its winning mentality, especially after many years of disappointment since the departure of former manager Sir Alex Ferguson. As MU has an enormous fan base across the globe, any decision from the board or potential owner would require them to back the team, in order for the team to compete in and outside of the pitch.
However, with the right decisions and a solid plan for the long term future, MU could be transformed under the ownership of Musk. He has the resources and expertise to create a world-class institution and return the Red Devils to their former glories.
What’s Next for Elon Musk?
As it stands, it remains uncertain what Musk’s plan is with Manchester United. Though his tweet, and the statement he made on the January Tesla earnings call suggest interest, a sale may still be a distant dream. It is also possible that he could be planning on a stakeholding in the club, instead of an outright takeover. For now, it appears that the future of MU is nothing but a question mark — one whose answer is yet to be revealed.
One thing is certain however — Musk is always looking for the next challenge, and Manchester United could potentially be the next step in his remarkable journey. His ambition, wealth and technology expertise could be the key to changing the dynamics of MU and how soccer operates in the modern world. Only time will tell if he can do it.
