Glazer Has Controlling Share - The End of MUFC?

Bearded Buffoon!
By Chris O'Brien
May 16 2005

Is this the end of Manchester United as a Football Club? Malcolm Glazer's plans to buy MUFC look set to go ahead with the American tycoon having secured a controlling stake in the club with the purchase of the 28.7% stake owned by JP MacManus and John Magnier. These are worrying times.

Manchester United supporters, including all at ManUtdWeb Towers, are fuming and the club's very future as its current identity is in doubt with Malcolm Glazer edging towards complete control of the Red Devils. The US tycoon has launched a takeover bid for the club with his stake now believed to be 62% with the major coup of securing the 28.7% stake of Irish racing money-men JP MacManus and John Magnier.

Supporters have already begun a protest outside Old Trafford which looks set to go on late into the night. Season ticket applications are being burned and anti-Glazer chants currently ring around the streets of Salford. Glazer's controversial plan to buy the club could have devastating consequences. There is concern about the level of debt the Football Club will be plundered into should Glazer buy the club. At such an early stage, it is impossible to draw any conclusions with regard to what will happen to the club, but drastic changes look set to change the face of the club we all love.

Glazer is owner of the Tampa Bay Buccaneers in the States, and had already steered them to the Superbowl when he started investing in football. Success for the American Football side came at a price though, with a dramatic rise in ticket prices freezing out many supporters. He gradually built his stake up in MUFC to 28% before launching his takeover bid which was rejected in November and then another revised off thrown back at the end of the year. With his stake gradually increasing, Glazer revealed detailed proposals of his takeover plan and was given limited access to club accounts. The board rejected another bid, but admitted that a 300p per share offer was good value for shareholders.

The news is not only a bitter blow for supporters, but comes as a big surprise. JP MacManus and John Magnier have not always been fan favourites, but it was considered that their investment in the club was there for the long haul and they would not sell unless Glazer made a huge offer of 400p per share. There big stake in the club has always been the key factor as to whether Glazer would obtain control of the Red Devils, but the two Irishman now own nothing as Glazer's ambitious plans to takeover the club are on the verge of success.

Many supporters have jumped on the anti-Glazer bandwagon without realising why the American's possible takeover has caused such a stir amongst the club's loyal followers. The business deal changes Manchester United, a footballing institution and the world's richest club, into mammoth debt. Glazer will need to borrow big amounts of money to complete his takeover, and if he can get his share to over 75% then he will be able to transfer this debt to MUFC. Such a stake would mean United would be delisted from the stock exchange, a figure that now looks certain to be reached and is only 13% away. Mass American-style commercialisation, re-branding, ticket price increases and even the sale of the MUFC ground could all be on the agenda to bolster income.

Malcolm Glazer has no interest in football. For him, sport is business. He sees United as an opportunity to make mammoth amounts of money, hoping to make a commercial return. This could involve changes in TV revenue, the exploitation of markets in the Far East and more. It does not fit in with the great tradition of Manchester United. MUFC and Glazer do not go together.

Shareholders United have undoubtedly been the biggest opposition to the Glazer regime. By paying £12, fans can join SU who will them buy a share on behalf of them for the organisation. Membership is growing at 28,000. The group aim to support the fans and tradition of the Football Club, not the business-side of things. The organisation currently enjoy a 17% share of MUFC, but will need to take this to above 25% to have a chance of blocking Glazer's ambitions. This is unlikely, though as I type, the Shareholders United web-site is down with membership applications flocking in. It's probably too little, too late, but you never know.

Thursday, May 12th is already being touted as one of the worst days in the history of Manchester United Football Club. I encourage all supporters to keep the faith and do as you can. If you are not yet a Shareholders United member, join now. If we are fighting a losing battle, we will still continue to fight. MUFC is bigger than any Public Limited Company, bigger than any American billionaire and bigger than business. The passion of supporters overrides any of this.

Shareholders United are already said to be preparing the foundations for the launch of a brand new football club; FC United. In similar style to what has happened at Wimbledon, FC United's ambitions would be to take the hardcore support of United and take them to a new club, likely to be starting life in the lower breaches of the Lancashire non-league set-up. This is far away and whether I would be able to stop supporting Manchester United, regardless of the chairman, is in doubt.

Time will tell - but it promises to be a very interesting few weeks for United.
Keep the Faith.
Manchester United Football Club