"Those wankers better not f*** up the greatest football team in the world, or we'll give them a f*****g good kicking!"
Posted on 05/12/2005 11:47:54 AM PDT by Alex Marko
LONDON, May 12 (Reuters) - Malcolm Glazer seized control of Manchester United, buying out its biggest investor and snapping up further shares to take his stake to 70 percent in a deal that values the soccer club at 790 million pounds ($1.5 billion).
Red Football Ltd, acting on behalf of the U.S. tycoon, agreed to buy the 28.7 percent stake in United from Cubic Expression, the investment vehicle of Irish race horse magnates John Magnier and J.P. McManus, for 300 pence a share.
Glazer's advisers quickly moved to buy up the remaining shares on Thursday. Sources close to the deal said Glazer had raised his United stake to around 70 percent, while they were confident of reaching a key 75 percent level within days.
The deal with the Irish duo marks the end of a two-year battle for Glazer, who has twice had his plans to win control of the 15 times English soccer champions rebuffed, but it sparked any angry reaction from United fans who promised to fight on.
Glazer, who already held 28.1 percent, took his stake to 56.9 percent with the purchase from Magnier and McManus and, in line with UK rules, launched a cash bid for the rest. The deal leaves the Irishmen with a 70-million-pound profit from their stake.
United's third-biggest shareholder, Scottish mining millionaire Harry Dobson, later sold his 6.45 percent stake to the Glazer camp, according to sources close to the deal.
With a 50-percent plus majority, Glazer has effective control of the club, but with over 75 percent he can run the club unfettered and delist United's shares. At over 90 percent he can force out any remaining minority shareholders.
United said it was awaiting the terms of the offer before making any further announcement.
Shares in the 127-year-old northern English football club jumped 12.9 percent to close at 299-1/4p.
"Glazer is in the driving seat, although he's had to go a bit hostile without the board's approval," said Richard Bullas, a fund manager at Rensburg Investment Management. Rensburg holds some Manchester United shares in its small-cap fund.
ANGRY FANS
Fans' groups called a demonstration at United's Old Trafford ground, saying Glazer had no knowledge of the football side of the club and was only interested in its brand and revenue.
They fear his offer will saddle United with heavy debts, force up ticket prices and divert funds which could be used to buy players for the team, which will finish a disappointing third this season in England's top soccer league.
"He's got himself an extremely tainted asset -- this is by no means over," said Oliver Houston at supporters' pressure group Shareholders United. "Even if Mr Glazer succeeds in getting all-out control, the campaign by fans to show that no customers equals no profit will continue."
Last month, United said the Glazer approach was fair and reasonable but it did not believe the offer was in the best interests of the club because of the high level of debt in the bid and therefore could not recommend it to shareholders.
Glazer, the owner of American football team the Tampa Bay Buccaneers, and his sons Avi and Joel plan to heap up to 300 million pounds of debt on to the club's balance sheet, and raise the remainder of the cash themselves.
United, home to star players Wayne Rooney and Ruud van Nistelrooy, is debt free and has argued that it needs this flexibility because failure to qualify for the European Champions League would wipe out its annual pretax profits.
Glazer's son Joel is expected to take charge of the day-to-day running of the club. Chief Executive David Gill and other executives are expected to stay on with the club, while the non-executive directors and Chairman Roy Gardner will resign.
"He'll probably come over here, or at least do it between the U.S. and Manchester," one source close to the deal said, adding that Joel had already spoken to Gill on the telephone to inform him of the change of control.
Another source said the deal was struck over the telephone with the Irish investors late on Wednesday night with a deadline to transfer the money to their investment vehicle Cubic Expression by 1300 GMT on Thursday.
"They saw it as an investment. They got a very good deal," a spokesman for the publicity-shy Irish investors said.
Riots to begin in 5, 4, 3, 2.........
I hope Glazer renames Old Trafford to "George W. Bush Field"
All your soccer balls are belong to US!
I couldn't give a sissor kick about UK's MU...it's NBA playoff time in the US, MLB is underway, so is NASCAR, and NFL exhibition games are but four months away!
I've a lot of friends here and the other side of the pond for whom this is big news. Big news to me is the change in the exchange rate since I last checked.
Men in shorts kicking a ball. What's up with that?
<< I hope Glazer renames Old Trafford to "George W. Bush Field" >>
Or even: "The President and Armed-Forces Commander-In-Chief of the United States of America, the Greatest-ever Nation in the History of the Human Species, George Walker Bush's Soccer Stadium"
<< Men in shorts kicking a ball. What's up with that? >>
Poofter Ball?
Now for some American innovations! How long before we see raunchy halftime shows and bobble-head nights at Old Trafford?
Go Buccaneers! Go Glazer piss of the Europeans more power to you
Go Buccaneers! Go Glazer piss of the Europeans more power to you
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Glazer is nothing compared to Chelsea FC owner Roman Abromovich (worth $15 Billion). He spent several hundred million in one season on players. It seems billionaires like coming to England to buy football clubs. The Prime Minister of Thailand tried to buy Liverpool FC recently. I think it is great that Billionaires want to spend their money in my country, I just wish someone would spnd it on me.
The difference between Glazer and Abramovich however is that Abramovich used his own money to buy the club and then to buy players for it. Glazer's bid for United is based largely on borrowing the money and then transferring the debt to the business when he obtains control.
Thus a business that is debt-free and making healthy profits will overnight will become one with £400 million worth of debt. The next £400 million of profit that the club makes, which could otherwise go to signing players or improving facilities, will instead go to clearing the debt that Glazer incurred buying the club for himself.
The advantages of this to the fat ginger one are obvious, what advantage this could have to the club are rather less so.
I doubt Glazer will ever visit Old Trafford anyway, he'd be strongly advised not to.
The advantages of this to the fat ginger one are obvious, what advantage this could have to the club are rather less so.
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lol. He does look like a right git. I read in the paper that he and his family despsie each other.
Exactly correct.
McKay to the Bay!!
Well, it could be worse. He could be from Liverpool. That *would* start riots.
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