Manchester United chief executive David Gill has launched a fierce attack on the Red Knights consortium interested in launching a bid for the club, in particular describe their leading spokesman Keith Harris as a publicity seeker with a modest track record. Harris may be no shrinking violet, but the description of his track record seems a bit harsh. While staying economics at Bradford University he pl
Manchester United chief executive David Gill has launched a fierce attack on the Red Knights consortium interested in launching a bid for the club, in particular describe their leading spokesman Keith Harris as a publicity seeker with a modest track record. Harris may be no shrinking violet, but the description of his track record seems a bit harsh. While staying economics at Bradford University he played semi-professional football for Bradford Park Avenue. His City career culminated in becoming chief executive of HSBC Investment Bank in 1996. He became Football League chairman at a difficult time in 2000 with the collapse of the ITV Digital deal. He led a buy-out of the Seymour Pierce investment and broking arm in 2003 and has been involved in a number of deals at major football clubs. Perhaps David Gill’s attack suggests that the Red Knights are striking home, at least in terms of inflicting some damage to the United brand.
Recently released figures show that the club spending on new players to £24.9m in 2009 compared with £29.7m the previous year, even though revenue went up from £47.8m in 2008 to £52.6m last year. Supporters complain that money is being taken out of the club. They are also aggrieved about a long-run rise in ticket prices which has certainly been part of the Glazers’ strategy. This has brought ticket prices to London levels, although it could be argued that fans are able to watch a team of outstanding quality. Despite the reduction in player spending, they have just won the Carling Cup and have a good chance of winning the Premier League title.
The greatest obstacle to any takeover is that the club is not for sale and football finance expert Stefan Szymanski has hit on a key reason why it is not. The US sports market is simply saturated and has not done well in attracting overseas viewers which is not surprising when one considers the limited global appeal of baseball and American football. However, clubs like United offer American sports franchise owners the opportunity for global growth.
Speculators have been buying United bonds. If there was a takeover they would be paid at 101p and until recently the bonds were trading at 93p. A provision under the notes triggers a put option on change of ownership. Journalists calling me yesterday did suggest that one strategy for opponents of the Glazers might be to buy the bonds. However, they would have to pay about 121 per cent of face value to call the bonds back early. Bond markets seem to be pricing in only a low chance of a successful takeover.