Can Glazer Fund United Bid? - Shareholders United Fight Takeover - 10/10/2004

Manchester United's biggest shareholders, Irish racing tycoons John Magnier and J P McManus, are reported to have said they will sell their shares in the club for 310p, around 40p over the current price and well above the less than 200p they paid for most of the shares. Can American businessman Malcolm Glazer afford a price tag that would value the club at over £800m. He is reported to have put two of his Palm Beach houses up for sale, but he is likely to have to borrow most of the money, perhaps through a securitisation deal that use future ticket sales as a security for specially issued bonds. Such a prospect worries fans who fear that it might mean increased ticket prices at Old Trafford and less money available for building the squad. Glazer has a record of making failed bids in the US and it may be that he is just interested in flushing out rival bids and making a profit on his shareholding. Certainly, there is little evidence that he has an interest in football. Although he has made a success of the Tampa Bay Buccaneers American football team, it has been alleged that he reneged on an agreement with the local authorities to go halves on a new $200 million stadium, threaten to relocate. Tampa taxpayers say that they are still footing the bill for the stadium through a local half cent sales tax.

Manchester United fans are mobilising against the proposed takeover by Glazer. Altrincham's Moss Lane ground was the setting for bizzare scenes when the reserve game against Birmingham City was halted for five minutes while thirty-five masked and hooded demonstrators marched across the pitch waving a huge 'Not for Sale' banner and attempted to burn the American flag. However, the real fight back will take place through the 18 per cent of shares controlled by 37,000 individuals and the further 1.5 per cent controlled by Shareholders' United. The membership of Shareholders' United has increased by 2,000 over the last week and is expected to reach 15,000 once the latest batch of applications is processed. The organisation received a boost when an anonymous Manchester businessmen put £750,000 into its share scheme. In 1999 shareholder fans were instrumental in referring Rupert Murdoch's £623 million bid to the competition regulator which subsequently blocked the deal. Independent shareholders are particularly indignant that Glazer appears to be proposing to use club funds to finance the takeover. It is reported hat the Glazer camp has been rattled by the fans' reaction. Fans have been unimpressed by an apparent offer of a token seat on the board.

A typical shy, retiring Manchester United fan in happier days.