Glazer launches takeover bid of Manchester United

[LastKnight]

Glazer launches takeover bid of Manchester United

By STEPHEN WADE, AP Sports Writer

May 12, 2005

LONDON (AP) -- Tampa Bay Buccaneers owner Malcolm Glazer began a $1.47 billion takeover bid of Manchester United on Thursday, raising his stake to nearly 57 percent of the world's richest soccer team.

He bought the 28.7 percent share held by Irish racehorse owners J.P. McManus and John Magnier. He previously owned 28.1 percent of the club.

Glazer needs more than 75 percent of the shares to take complete control, and he will now make an offer for the remaining shares. His company, Red Football, said he would pay $5.58 a share to acquire the Irishmen's stake.

Thursday's move came two weeks after the Manchester United board said it would not recommend Glazer's takeover proposals to investors because his business plan appeared ``aggressive.'' Glazer had been given a May 17 deadline to submit a plan or withdraw his attempts to buy the team. His first two proposals were rejected by the board, which said the package relied too heavily on borrowed money.

``The board awaits the formal terms of the Red Offer and a further announcement will be made once the board has reviewed that announcement,'' the club said.

Financial analysts said Glazer seemed certain to succeed in buying the team.

``The stake held by the Irishmen was always going to be the key to the bid,'' said Roy Kaitcer of Manchester stockbrokers Brewin Dolphin Securities. ``He obviously has a great platform to start his bid.

``Once other shareholders see what has happened, they will say they better take that as well. It looks like Mr. Glazer is on his way to owning Manchester United.''

There is strong opposition from the fan group Shareholders United, which fears Glazer will raise ticket prices and sell 67,000-seat Old Trafford stadium.

``I'm giving up my season ticket,'' Shareholders United president Nick Towle said. ``I'm not putting a penny of my money into this guy's pocket.''

``I'm very sad,'' he added. ``It's a really sad day for Manchester United, for the supporters, for the whole club and I think it's a sad day for football in general.''

Shareholders United represents 17 percent of the club's stockholders, a number estimated at 20,000. Towle said at least half -- and maybe all -- would give up their tickets and stop attending games.

He said Shareholders United still hoped to block Glazer from reaching the 75 percent level.

``If we can get to that 25 percent of the remaining shareholders, that would be great,'' Towle said. ``But it's looking like an uphill battle for us.''

Manchester United dominated English soccer for more than a decade, winning eight titles in 11 seasons and four FA Cups in 10. But the Red Devils are now only third in the Premier League for the third time in four years.

With a game left, Manchester United is 20 points behind champion Chelsea and six behind runner-up Arsenal. Glazer's move came just before Man United's May 21 FA Cup final against Arsenal, its only chance for a trophy this season.

http://sports.yahoo.com/sow/news;_ylc=X3oDMTBpYnF0a2UxBF9TAzk1ODYzNTkwBHNlYwN0bQ--?slug=ap-manunited-glazer&prov=ap&type=lgns

[RJWGoBulls]

Can he not take a hint that he is not wanted?

[RJWGoBulls]

Fans rage at Glazer takeover move

     

Glazer has a 62% share after securing the 28.7% stake of Irish racing tycoons JP MacManus and John Magnier.

Nick Towle, chairman of fans' pressure group, Shareholders United, claimed he has ripped up his season ticket.

He said: "I am very sad - I still love the club but I refuse to put a penny into the company. And I believe as many as 20,000 fans may also leave Man Utd."

Fans have begun to gather around Old Trafford, and some have marched around the ground with a huge "Not For Sale" banner.

There has also a "sit-down" protest with fans blocking a main road next to Old Trafford - while others have burned season-ticket renewal forms in a gesture of defiance.

Supporters are concerned about the level of debt involved in Glazer's bid and fear for the club's future.

Oliver Houston, vice chairman of Shareholders United, told BBC Radio Five Live that Glazer is "no Roman Abramovich".

Chelsea's Russian billionaire owner, Abramovich, has invested over £200m on players since taking over, bankrolling the club to the Premiership title this season.

     

Glazer buying Utd is just another nail in the coffin of football as we know it

From NS

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Houston predicted an entirely different scenario at United.

He said: "He's not turning up with a suitcase full of his own cash.

"He is, in effect, asking Manchester United fans to pay for his takeover, to pay for increased ticket prices and increased merchandising."

Shareholders United, which represents 17% of the club's stockholders, still hopes to prevent Glazer reaching the 75% level of shares he needs to make his offer unconditional - and essentially own the club.

But Towle admitted: "It's looking like an uphill battle for us."

Fellow member of Shareholders United, journalist Michael Crick - biographer of United manager Sir Alex Ferguson - believes Glazer's "hard-nosed business record" spells danger.

He said: "He is going to be much keener to boost profits, particularly as he's going to have to borrow so much to buy the club.

     

If Glazer does get control, we will up sticks and form a new club

Jules Spencer, Independent Manchester United Supporters Association

"I can only see that it's the fans who are going to lose out here in a big way."

MP Tony Lloyd, who represents Manchester Central and is also a Manchester United shareholder, told Five Live:

"I'm a very modest shareholder, I wish I had more so that I could do my best to block what I think is an unwelcome bid.

"I think most football supporters in this country will see this as being an undesirable move because it's not in the interests of the game of football."

Jules Spencer, chairman of the Independent Manchester United Supporters Association is ready to take radical action.

"If this is to be the end then we will go down kicking and screaming," he said.

"If Glazer does get control, then we will up sticks and form a new club which will continue the traditions and heritage and the legacy of 125 years of Manchester United.

"We don't want Malcolm Glazer, we want a club run for the fans - and that is what we will do."

http://news.bbc.co.uk/sport1/hi/football/teams/m/man_utd/4541093.stm

[Velcro]

Go get him MUFC fans!  Make a new team called United Manchester ;D

[RJWGoBulls]

The views of people in the UK...

http://news.bbc.co.uk/1/hi/talking_point/4541487.stm

[Markeymark]

What's the big deal? And how do they know that he's going to sell the stadium, or whatever other evil things they are saying he's going to do.

The Buccaneers are in a lot better shape than before Glazer bought them - nobody can argue that, although the fans of Hillsborough County voted to tax themselves in order to build a new stadium that Glazer greatly profits from.

It was previously owned by some rich guys from Ireland, right? It's not like it was owned by locals in the first place. And Glazer looks sort of like a little Irish leprechaun.

[RJWGoBulls]

Previously it was owned by the fans and anyone as it was a listed company, Magnier and McManus were just large share holders but didnt get involved in the running of the club.

Prior to Glazer taking over the club the club was the just about the most efficiently run in the world, all investments were made without the need to borrow funds therefore the club has no large debts.

Glaser is funding his takeover using a £250m (~$450m) loan that has been borrowed based on the future earning of the club, as soon as he reaches the 75% mark he is going to transfer this debt so that it become property of the club and not himself any longer, also he is planning to raise another £250m by issuing debt against the club, therefore the club is going from a position of no debt to £500m of debt overnight.  Ticket prices are the first thing that will be raised in order to cover these costs, why should we have to pay for him to buy our club?

Also his 5 year plan that allows £100m of transfer funds to be made available is insufficient, £20m a year just aint enough to buy a single top player, one player we bought last summer cost £27m, the best palyer in England

Also this takeover has repurcussions for the whole of football, in order to maximise his revenue streams he is likely to break the collective TV agreement for the whole of the premiership and try to negotiate a single deal for United, yes they might end up with more revenue from it but at the expense of the smaller clubs, as the smaller clubs have less TV money they have smaller transfer kitty's to purchase players in the lower leagues therefore less money trickling down.

[Markeymark]

Ticket prices are the first thing that will be raised in order to cover these costs, why should we have to pay for him to buy our club?

It will be interesting to see whether the fans really care who owns the team, or if they'll keep going to the games. In the case of the Buccaneers, Glazer threatened to move the team to Baltimore and the local poo-bahs capitulated to his threats. Then the taxpayers of Hillsborough County voted to take it up the a$$ for an indefinate period of time. I was living on the Pinellas side at the time, but if I was living in Tampa I would have definately voted "no" to the sweetheart deal.

As for the other points, I guess I don't know enough to make an informed comment, but most of it sounds like big-business stuff that has almost nothing to do with everyday fans.

[Velcro]

start up a new manchester... they've got the money, obviously, as Malcolm is buying out these peoples shares... let him buy 100%, then all those people get together, build another union, and keep the old MU out of it.

I'm sure it isn't THAT simple, but hey... its at least worth mentioning.

[RJWGoBulls]

LOL, that is what some people are planning to do! Create Manchester United AFC, only things is over here you cannot simply create a new team and start in the big leagues, they will have to start in the small sunday leagues and win promotion through at least 10 different divisions to reach the premiership, that gonna take at least 10 years assuming you win promotion every year!

As for people shunning the games to hurt them through non attendence, the fan base is such they could sell out old trafford 3-4 times over so for every 20,000 who dont turn up there is plenty to take there place, however these wont be the die hard fans, these will be the glory hunters/corporate people (once described as the prawn sandwich brigade! as they make no noise at the games cause they are two busy eating their prawn sandwiches) who are only interested in being seen their/can tell there freinds they were there cause its the thing to be done.

As for selling the ground I doubt this will happen cause I dont know what he will profit from doing so! the council definatley wont be building him a new one, EVER, plus the land it siis on is fairly worthless cause its in next to an industrial park and not in prime postion for housing.  He might sell the naming rights to the ground, that would be bad enough, its been Old Trafford for at least 60 years and certainly dont need to be changed now.

As for your comment about it being big business, thats just the problem, it seems that he is viewing the venture as just another business opportunity to profit maximise and not as a football club.

One thing that might come back to bite him is, if he does renegotiate the TV deal makes more money for the club and gets every game on TV the attendence will likely suffer as it has in Italy, where every game is played in front of half filled stadiums.  Granted they will probably sell out the big games but half empty stadiums for half the games in a saeson will probably hurt in the long run.

In amendment to what I said earlier the second amount of £250m he is raising will not be guaranteed against the club but against his families money.