04 April 2023 , 10:53
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Officials from the UK government have raised concerns about Manchester United bidder Sheikh Jassim bin Hamad Al Thani.
Al Thani is one of the frontrunners to buy the Red Devils, with the Qatari banker going up against British billionaire Sir Jim Ratcliffe. The takeover process is continuing to drag on, with the Raine Group expected to provide an update to the bidders this week.
Sheikh Jassim is looking to make a 100 per cent buyout of the United shareholders, as well as clearing the club's debt. But he is facing a major obstacle, with concerns now being voiced about his previous business record.
The Qatari has been chairman of the Qatar Islamic Bank since 2006, though scrutiny is now being placed on that organisation. According to Bloomberg, senior officials working on football governance have raised concerns about regulatory failings at the UK unit of QIB.
The failings relate to Sheikh Jassim's management of QIB, focusing on a £1.4million fine that was handed down to its UK unit in 2016 by the Bank of England. The fine was levied against them for violating capital requirements that left the bank exposed to high risk levels.
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QIB was accused of failing to recognise that it had to comply with regulatory requirements relating to the assessment and maintenance of financial resources and capital. Its failings fell significantly short of the Prudential Regulation Authority's expectations.
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The concerns relate to Sheikh Jassim's management of the Qatar Islamic BankThe PRA did recognise that QIB had undergone significant restructuring and put a new board in place. But Andrew Baily, who at the time was the CEO of the Prudential Regulation Authority, blasted the bank's failings.
“In failing to assess, maintain and report on its financial resources for over a year, QIB failed to meet some of the most basic regulatory standards," Bailey, now the governor of the Bank of England said.
"It is essential that regulated firms are aware of, and have the systems in place to ensure adherence to, regulatory requirements. QIB’s failures in this regard were serious, which is why we considered it appropriate in this case to impose a fine.”
While senior officials are raising concerns, it is said there is no suggestion that the government will block Sheikh Jassim's bid. But there is a feeling that ministers may pressure the Premier League to further scrutinise Shiekh Jassim.
Representatives of Sheikh Jassim declined to comment.
Those involved in the bid have it clear that QIB is not bidding to buy United, with Sheikh Jassim instead presenting his offer as a private individual.
The government is set to introduce an independent regulator to protect football clubs from owners who might pose a risk to the stable running of the team. The Premier League recently tightened their rules around ownership.
Those found to have committed human rights abuses and individuals subject to government sanctions will be banned from owning clubs. The new restrictions will apply immediately, though Sheikh Jassim is not affected.
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It was also reported last month that UK government figures had said they would privately welcome Qatari investment into the Red Devils.
Senior UK government figures speaking anonymously told POLITICO that Britain should “absolutely be embracing foreign investment into this country from the Middle East, whether it’s in football or green energy,” whilst another key government figure said the deal would be a "good investment" if it came with assurances that the wider community would benefit.