£1bn bait for Glazers

James Robson

February 15, 2010

THE Glazers will come under increasing pressure to sell up at United with City banker, Keith Harris, ready to tempt the Americans with a £1bn offer.

The lifelong United supporter has spent the last month courting financial backers and is now confident he can put an offer on the table by the end of the season.

But with money no longer an issue, the biggest obstacle will be the Glazers' willingness to sell.

A source close to Harris said: "They have given no indication that they will sell and it is impossible to know what they will accept until they are approached, which they haven't been yet."

It is becoming increasingly apparent that Harris' hopes of a buy-out will have as much to do with fan power as funds.

With the Glazers so entrenched at United, £1bn alone might not be enough to tempt them to sell, having bought the club for £831m in 2005. Anti-Glazer supporters now hope a series of protests from fans will tempt the Americans to accept the cash that is on the table.

But having weathered a hailstorm of abuse when originally buying United, the Glazers have proved as resilient as they are unpopular.

It is thought that it will take something more drastic than mere protests to convince them to sell, with fans being urged to hit them in the pocket.

A boycott on season-ticket renewals would do that - but there are no guarantees that there wouldn't be more fans waiting to snap up any unallocated tickets.

But it will take a uniting of the various supporters' clubs to intensify the pressure on the Glazers.

Fans' group goals

It is understood that talks have already been held between the Independent Manchester United Supporters Association (IMUSA) and the Manchester United Supporters Trust (MUST) in a bid to combine forces for the common goal.

The anti-Glazer feeling has only intensified since the release of the club's financial figures last month.

Only the world record £80m sale of Cristiano Ronaldo enabled the club to post pre-tax profits of £48.2m, despite a record year in which turnover was up from £80m to £91m.

Repayments of £42m on the £509.5m loan taken out by the Glazers to buy the club have proved a massive drain on resources.

While £500m of bonds have since been issued, it has hardly quelled the unrest among supporters already infuriated by rising ticket prices.

With the concerns over debt confirmed by the financial figures for the previous year, MUST contacted Harris, who is renowned in brokering buy-outs of football clubs.

The executive chairman of investment bank, Seymour Pierce, has gathered together a consortium of leading businessmen, dubbed the Red Knights, to put together the funds to dislodge the Glazers.

"We don't know if the Glazers can be made to listen, but there is serious intent on the part of people who have support in their hearts," said Harris.

"The Glazers are playing with an icon of football, one of the most respected brands in the world, and it is in danger. If these rumblings become a revolution and fans stop going - as difficult as it is for them not to go - and the pounds stop coming in, there is real peril."

Talks are still ongoing with the Red Knights and Harris hopes the growing unrest among fans will finally be enough to bring about a takeover.

The source added: "The bonds issue seems to have tipped fans over the edge. United supporters in the financial world are really angry about it.

"If fans stop buying season tickets it will have an impact. It won't make the club less attractive to potential buyers because they will know fans have stopped coming because of the Glazers and will return.

"This is not an overnight process. It will take time. For now it is crucial that fans come together under one cause."

What do you think? Have your say.

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The Man frae Govan (15/02/2010 at 09:05)

You have to stop spending money at the ground - I couldn't take the risk of not renewing my season ticket but it is easy for everyone to only spend this.....no megastore tat, no coffee, no Budweiser, no crisps and kitkat super deal.

I also agree that we need one voice, not the Popular peoples front of Old trafford or the peoples front or anybody else trying to get on sky sports news for an interview.

Sam Davis (15/02/2010 at 09:12)

Another non story. Why would the Glazers sell United for 1bn when the club is worth more than that. This is getting very boring now.

barca99, Salford (15/02/2010 at 09:21)

I've said dozens of times that we will have no shortage of buyers when we rid ourselves of the Glazers and we will be rid of them sooner rather than later, even the most pig-headed people will have to listen once the natives get restless, lets hope that whoever takes over will realise that this club isn't a Siddy, Newcastle or some other two bob club, this is United, Manchester United, the greatest football club on planet earth.

TICK TOCK .................... PLAY TO THE CLOCK (Again)

Horace Hughes, Salford (15/02/2010 at 09:53)

Dont think £1 billion will do it. Will have to be more so the glazers will get a good return. About £1.2-£1.3 billion, will have them drooling. That said there needs to be at least £1.5-£1.6 billion raised just to get the club back on its financial feet, to enable Fergie the funds to buy world class players, and their wages again. The honerable thing to do would also be to drop the season tickets by at least 10% to show the fans the new board is really there for the club and not for profit.

Alias Smith, over the moon (15/02/2010 at 09:57)

Perhaps Harris should stay quiet until he actually has something constructive to say? Something like "We have commitments from Red Knights of £1.X billion and are ready to approach the Glazers in the hope they are open to a sale. Our plans are to be inclusive to fans in the following ways...."

Anupam, Pune (15/02/2010 at 10:06)

Its high time the red knights come forward and speak up. Unless they do that we can't be sure if something is really happening in the background.

Support the team and live the dream!

Anupam, India

REDindianDEVIL, Delhi, India (15/02/2010 at 10:06)

I proposed a similar fan buyout here:
http://www.caughtoffside.com/2010/01/26/the-easy-way-to-get-the-glazers-out-of-manchester-united-for-just-1/

Monkey tennis?, yes please (15/02/2010 at 10:14)

I'm going to start a campaign that every single investor under the Red Knights moniker has to pass the "fit and proper persons test". I don't want a Michael Knighton or on the other end of the scale, a Robert Mugabe figure having an ownership in Utd.

Duncan, London (15/02/2010 at 10:21)

One thing that would get the Glazers out is if Platini gets his way with banning indebted clubs from Europe. They would be out in a heartbeat.

tooth&claw, manchester (15/02/2010 at 10:39)

I read a report in the Telegraph that the Red Knights plan has got even more surreal. Now it's up to 50 Red Knights contributing an imaginary £575m. Then there are up to 100 Pink Knights who aren't as worthy as the Red Knights and only contribute £125m. Then there are the Red Knaves (fans), up to 50,000 of them, who will loan the Red and Pink Knights the remaining amount to buy out the Glazers.

Now, if it takes £1.2bn to buy out the Glazers with the Bond Debt still with the club, this would require raising £500m in loans from 50,000 Knaves (that's £10,000 each). It would also mean that the club would be £1bn in debt, half to the Bond Holders and half to the Knaves. In addition to the debt, there would be interest payable on the Bonds and the Knave Loans. That would be, maybe £80m a year in interest payments. There's no new money coming into the club in this scheme and it also leaves United run 150 people who'd want a return on their money. So that's more money coming out of the club in dividends to the Knights. Let's say that the Knights, being philanthropic, only want a 3% return on their investment. That's another £21m a year leaving the club. So, we'd be twice as indebted and interest payments going out of the club will go from £40m to £100m.

And they wonder why people don't take them seriously!

BALL AND BAT, ALL OVER (15/02/2010 at 10:44)

I hate the glaziers ruining my club.
And if that means nearly every 1 just not attending the games after this season and not renewing the season tickets then thats how it has to be with demonstration yelling out glaziers out and id expect theboard to lower the prices of tickets that can then be bought at the gate but just show up in green and gold and strong arm the supporters trying t pay in....strong arm the glaziers thats the only way and mke them worry ad think oh weve dropped a big one here and then let them sell to the person who bids and i mean a bid that says thats all your getting no one attends your backers will fold and the glaziers will have to make a huge loss and scurry away back across the pond .
This is just a dream but i can dream.....the new owner would be a die hard set of united owners ,and pile the dosh in.......world domination begins and the red army rolls on stronger than ever making more history the red revolution steamrolls on........UTID

My old mans a dustman., Tick..............................Tock (15/02/2010 at 11:10)

They will never accept £1 Billion because in the not too distant future that will be the amount of money that you debt ridden club will owe to the banks.
The people might be crooks but they are not daft, if an offer comes in about say £2 Billion it might make their ears prick up a little but I wouldn't bet on it.

Doc Savage (15/02/2010 at 11:10)

Hopefully we'd get someone really rich that is impatient, meddlesome and seeks publicity. Is it better the devil we know?

The club would be well off acknowledging the Ronaldo money as a one-off consequence of the recession, freeze season-tickets, refer to the success we've had under them and give guarantees that they want this to continue.

MEN,

Can we have a Q&A interview with MUST-IMUSA?

Enzie, Red Heaven (15/02/2010 at 11:17)

The Glazers do not care what we think. They will continue to make money from the club regradless. All of the Green & Gold (as much as i support it) wont have an effect on them when they are on the other side of the world not even watching our games on the TV.

As people have said, the only thing which will wake them up and possibly force their hand to selling, is if there is a massive problem selling tickets, but this will never happen either. All die hard reds will give up their tickets, only for their seat to be bought by tourists who will spend the 90 mins taking photos of fred the red.

Id rather die hard reds stayed behind the team as the only ones which will lose out is them when they are watching Matt le tissier & Phil Thompsen on soccer saturday.

It will take a mega offer to buy them out, and if it ever happens it must take us out of debt.

bobbydazzler (15/02/2010 at 11:28)

enzie red heave.

as adie hard red of some 47 years i am giving up, and you are wrong about tourists filling the gap united sruggle like hell now to sell all the available seats.

Prestwich Red, Prestwich (15/02/2010 at 11:31)

Not a single penny from me. THAT is the way to force the Glazers out.

The only thing they care about is money. Cut their supply of money and they'll cut their ownership of the club.

Farai, Cape Town, I named my house after The Stretford End. (15/02/2010 at 11:51)

tooth&claw, manchester,

Just a reminder T&C

On the 17th of March 2006 at 12:56 you said that, “I am happy that the Glazers haven't done anything wrong” Are you still happy?

You were wrong from the word go and I will never forget your comments.

I don’t think we should take you seriously. Sure we have over the years been wholly or partly owned by brewers, butchers, stud farmers and media tycoons, but the monster difference is that they all brought their money to the club to gain their shares, whilst the Glazers have not. This is a moral issue even more than financial. Everything has its price except those things which are priceless, and those include faith and loyalty and it’s us the fans who are affected.

Alias Smith, over the moon (15/02/2010 at 12:07)

Duncan, most of the big English, Spanish or Italian clubs would be excluded from the CL if such a rule were introduced so UEFA are extremely unlikely to be serious about it.

Not that some effective restriction on debt levels wouldn't be welcome, but no doubt there would be endless arguments about what is an appropriate level of debt and would it be measured against turnover, EBITDA etc? It would have to be something that would be impossible for the accountants to manipulate.

I would like to see a restriction of the wage bill relative to turnover, which could be easily introduced over say a five-year period. That would help a lot of clubs to live within their means but would not unfortunately help in situations like United where the debt has been caused by the takeover rather than using debt to finance crazy activity on the player front as in the Chelsea and City models.

Get the tissues out..., COLLYHURST (15/02/2010 at 12:13)

Prestwich Red, Prestwich
15/02/2010 at 11:31

Never a truer word about the Glazer family has been spoken on these pages.

vegas-blue, Stalyvegas (15/02/2010 at 12:13)

Who does Keith Harrris have lined up to buy United? Orville the Duck?

gary's middle finger!!, Levenshulme Blue (15/02/2010 at 12:21)

wonder if he still has that monkey that says "I hate that duck"

tooth&claw, manchester (15/02/2010 at 12:24)

Farai, wrong. None of our previous owners brought money into the club. They all took it out. When I bought shares in the plc my money went to the person or entity selling those shares, not United. When Cubic Expression bought shares their payments went to the sellers of shares, not the club. When the club was floated, the bulk of the money raised was taken out of the club by Edwards. You have a fundamental misunderstanding of the system.

As far as I can tell, no-one over the last few decades has brought money into United through ownership. All United's revenue has coming from it's own trading and not from cash injections by owners.

The Glazers used their own funds to buy the first tranches of shares. Their money went to existing investers. They borrowed money against the assets of the company that they did not yet own (the bit I vehemently object to) and they borrowed more money at high interest rates against their own assets to complete the deal. All of this borrowed money went to existing United shareholders, including me.

As for the Glazers, I am happy that they haven't done anything wrong operationally. Everyone is happy that they haven't done anything wrong operationally. As I've said a million times, what they did to gain ownership was morally wrong, in my opinion, even if it is legal. What they have done since is exactly what you would expect and exactly as predicted for a leveraged buyout and with the club operationally, they haven't done anything wrong.

But what has that got to do with my post about the article in the Telegraph?

Farai, Cape Town, I named my house after The Stretford End. (15/02/2010 at 12:42)

tooth&claw, manchester,

Thanks for your explanations.......it's all over my head now.

Enzie, Red Heaven (15/02/2010 at 12:43)

Bobbydazzler, i understand why you wish to give up your ticket but are you going to tell me that come August someone else wont be sitting in your seat?

I dont think United will ever have the issue of less than 70,000 at league games.

After going to OT for 47 years i genuinely feel sad for you that is has all come to this, where REAL supporters are giving up what they love. I really hope for your sake, it pays off.

Django, Hampshire (15/02/2010 at 13:27)

Unless a sheik or an oligarch is involved the Glazer's will inevitably have to be bought out with borrowed money.

T@C is right. New debt will just replace old debt and we could be left with a confused and diffuse ownership that will make Hicks and Gillett look a model of sensible management.

Be very careful what you wish for.

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