Gill defends Glazer business model

March 12, 2010

David Gill

Manchester United chief executive David Gill insists the Old Trafford outfit are benefiting from the Glazer family's business expertise.

Whilst the highly visible green and gold campaign, which David Beckham offered support to by wearing one of their scarves as he made his way off the pitch on Wednesday night, will again be in evidence as United entertain Fulham on Sunday, Gill believes the Glazers' positive contribution to the club is being ignored.

United announced a seven-figure sponsorship deal with Telekom Malaysia on Thursday, providing further proof the Reds remain an attractive proposition.

The five-year deal is part of a new commercial strategy implemented by the Glazer family.

Instead of taking a global approach, United adopt a territorial stance, doing exclusive deals in specific areas to maximise income and make the most of an estimated 333million supporters worldwide.

It was one of the facts the Glazers took into account when they launched their own takeover.

"The owners thought we were doing very well on the commercial front but that there were other opportunities out there," Gill said.

"This is the insight they have brought in.

"It doesn't get much media coverage but the very fact they have come in and are able to do these deals benefits us.

"We can reinvest that money back into the team."

Gill's comments reinforce the view inside Old Trafford that the only reason the vast majority of the £80million received from Real Madrid for Cristiano Ronaldo remains unspent is due to Sir Alex Ferguson's reluctance to enter what he feels is an inflated transfer market.

The Manchester United Supporters Trust argue differently, of course, as they stand solidly behind the Red Knights, whose attempt to wrest control of the club on behalf of the fans is now being assisted by leading global investment bank Nomura.

Sources close to the Glazer family have continued to insist the club is not for sale, and they have no intention of off-loading despite debts in excess of £700million.

It was a message reinforced by Gill as he was announcing Telekom Malaysia is to become the 'Integrated Telecommunications Partner' of the Old Trafford outfit.

"There are protests," said Gill.

"Everyone has the right to protest and there was certainly a lot of green and gold there on Wednesday, you cannot deny that.

"But this partnership demonstrates the strength of the club. It is a long-term partnership for five years.

"We will be around for the length of this five-year deal and many more in addition to that.

"We have a sound business model and Telekom Malaysia is partnering one of the best teams in world football. That will always be the case."

What do you make of Gill's comments? Have your say.

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Redraw, Belfast (12/03/2010 at 09:57)

I used to like Gill

They wouldnt print how I feel about him now.

Just you save your own Job David at the expense of United.

stevi, france (12/03/2010 at 09:58)

Like it or lump it the Glazers are going anywhere soon....

Free Red, Manchester (12/03/2010 at 09:59)

"Gill defends Glazer business model"

Well of course he does that's what David "debt is the road to ruin" Gill gets paid for (lol)

Tony Nuttall, Barnsley (12/03/2010 at 10:00)

I hope that all those who oppose the "Glazer business model" will get down to Gigg Lane tomorrow for FC v Durham, kick off 3pm.

Robbo, N2409, M16 (12/03/2010 at 10:05)

"We can reinvest that money back into the team," says Safe Hands, presumably auditioning for a three week run at the Edinburgh Fringe.

Johnniejohn, Tunbridge Wells (12/03/2010 at 10:12)

Cue the signing of some Malaysian kid like Dong

Robbo, N2409, M16 (12/03/2010 at 10:14)

Meanwhile, in other news...

"War, famine and disease not necessarily a bad thing," says Gill.

Splurge (12/03/2010 at 10:25)

Anyone with half a brain could secure a decent sponsorship deal for Man U. They want to be linked with us and will pay for the privelige, so its hardly rocket science.

And the Glazer's business acumen is so good that had we not sold Ronaldo last year we would have made a loss. great plan.

JStander (12/03/2010 at 10:26)

If they have not already done so, I would guess that now is the time when Gill and the Glazers get together to decide on prices for next season.

I would suggest to MUST that (accepting any takeover may be a long term venture, in view of apparent stance by Glazer) they write to Glazer suggesting a freeze, at least, of ST prices for next year with a 10% discount for holders who have had Season tickets for 5 years or more.

With sufficient advertising for such a move, the 'ball' is firmly in the Glazer court for a positive response, and should indicate their future intentions.

The likelihood of me renewing, and my first season was 1959, are very slim - on financial grounds - and I suspect there are many in a similar position. Proposed boycotting on "Glazer" grounds alone may only have limited chance of success. United are already advertising for fans to join a (supposed) ST waiting list.

LUHG

Midfield General (12/03/2010 at 10:27)

Anyone know of the numbers? I heard "7 figures". Over 5 years?

United 18, Huddersfield Town 3, City 2 (League Titles), Wilmslow (12/03/2010 at 10:33)

At the End of the Day when all is said and done, United are losing out on around £50 Million each year which could be invested on the team to pay off the debt. I dont care about "Good Business Models" blah blah blah, the money that we the paying supporters spend going to games is getting spent on debt. SIMPLE AS THAT MR GILL.

danny, WILMSLOW (12/03/2010 at 10:35)

Gill and several others are just Glazer puppets or is it muppets I amm not interested in FC united and they should have stayed loyal to the club.

BALL AND BAT, ALL OVER (12/03/2010 at 10:41)

Gill your a puppet .......just keep your mouth shut....if the red knights get there way you my little gimp will be off (sacked),but dont worry citeh will sack cook and youll both be saying where did it all go wrong.

The Kid (12/03/2010 at 10:42)

Correct me if I am wrong but, according to figures United made a £43 million pound profit, inclusive of the £80 million upfront Ronaldo fee. So, I deduce if Ronaldo had not been sold United would have incurred a £37 million pound loss, maybe less because we would not have been able to afford Valencia. United won the Premiership, League Cup, reached the semi final of the FA Cup, and Champions League respectively. Last season was a terrific season, yet the club would have posted a loss. What kind of business model is that? When the Glazers first took over they promised a £25 million a season transfer pot, plus any additional money generated through outgoing transfers would be added to these funds. They also promised the name Old Trafford would remain, that it would never have a sponsored title like Arsenal have with the Emirates. Blimey, five years on they have had to use both Old Trafford and the Carrington Training Complex as bond security, which questions their competence as business people.
Gill is making himself look a fool. To say Ferguson has money to spend, when the club is saddled with a £700 million debt millstone around their necks is totally irresponsible. Gill, Glazer, can reiterate their stance that the club is not for sale until their blue in the face, however, the bond prospectus highlights the importance of match day revenue, how vital it is vital to the business model. A boycott of season tickets, and the Glazers will be gone in no time.

Midfield General (12/03/2010 at 10:55)

If this is the best spin the Glazers can trot out to win fan favour, then they will need to do much better than this to convince anyone with any intelligence. No confirmed figures, so are we supposed to now think the Glazers are good for United on the basis of this? As Splurge said, securing sponsorship for United is not exactly hard - we are the most valuable sporting brand in the world! Most businesses would love to be associated with United.

stevi, france (12/03/2010 at 11:09)

danny, WILMSLOW 12/03/2010 at 10:35 its all very well people like yourself saying Gill & other are puppets for the Glazers but that pretty obvious are they are his empolyers......

I'm sure now you're going to harp on about principles etc. but honestly how many of us with give up our jobs as a matter of principle?....none!

The Kid, 12/03/2010 at 10:42 "A boycott of season tickets, and the Glazers will be gone in no time." The fact is you have no way of knowing this to be true and no time could in actual fact be years, you must stop dealing with fantasy and deal with the actual realality of the situation.

You can't make serious decisions on a wimp & a prayer, thats the difference between being a sucess or finding yourself in the bankruptcy court.

james cromley, stockport (12/03/2010 at 11:21)

The lemmings that are following the LUHG cause remind me of how easy it must have been for Hitler to peddle antisemitism. The unintelligent will follow any cause as long as it gives them identity and a bond with people who would normally not cross the road to pee on them.

Please turn against these people they only want to destabilise the club for personal greed.

This is the most successful period in the clubs history and it comes at a price. Don't let them spoil it. Keep United Red and White.

Unless ofcourse the Red Knights promise to 1. Reduce ticket prices 2. Promise to never take a penny in dividends, shares and bonuses 3. Promise to put all profits into the transfer kitty 4. Promise to never borrow any money that would attract interest payments.

They can and will never promise these things. Wake up.

Midfield General (12/03/2010 at 11:28)

The owner of the Dallas Cowboys:

"And let me say this – I don’t feel like I own the Cowboys. You can own a piece of land, a house or a business. You can’t own the Dallas Cowboys. The fans own Dallas Cowboys."

What would their fans say if someone bough them with a leveraged takeover and walked off with most of the profits?/ There would be mass protests. And as the Cowboys are seen as an national institution muck like United, all fans would oppose it.

tooth&claw, manchester (12/03/2010 at 11:30)

BALLS, " Gill your a puppet .......just keep your mouth shut....if the red knights get there way you my little gimp will be off (sacked),but dont worry citeh will sack cook and youll both be saying where did it all go wrong."

O'Neill has stated that he wants to keep Gill.

Anthony Shaw (12/03/2010 at 11:45)

The Kid has it right. He actually looks at the bigger picture rather than just how we are doing on the pitch.

Unfortunatly i fear the majority of our fans will only start to realise when, not if we finish below City in the league.

I saw Duncan Edwards play, Walton Le Dale (12/03/2010 at 11:50)

I confess to being baffled by the whole Glazer fiasco. I am most certainly not a financial expert and I do not possess any business acumen at all. Although I consider myself to be of competent intelligence, I will not post any comment or opinion of the said fiasco due to my lack of understanding of the whole situation. Actually I think it is called 'sitting on the fence'.

I am therefore indebted to a few of my fellow United posters for at least 'keeping me in the loop'. I do appreciate some of the postings so far this morning that contain a sensible approach to the subject, and find them most interesting, eg from stevi France and JStander. I also warm to the witty comments that have been subscribed eg from Robbo. Thank you, one and all!

Bar one or two obviously silly or Bitter posters, please continue your offerings. It does enlighten this poor wayward sole.

G M USA (12/03/2010 at 11:50)

All Gill seems to talk about with respect to the Glazer's so-called positive influence is money. Given the massive debt and the withdrawal of funds by the Glazers, I think Mr. Gill has got it backwards. He ought to be talking about the positive influence (financially) the club has had on the Glazers.

Make your choice Mr. Gill: it's either Green and Gold; or, Greed for Gold!

The banners staying up..., Manchester (12/03/2010 at 11:53)

Gill will be first out the door.

Rozza, London (12/03/2010 at 11:55)

I'm no fan of the "Glazer business model" but at least its out there in the open and we all know, more or less, where we stand. Where is the detail behind the Red Knights plan? These are hardcore business people not known for there million pound charity donations!

stevi, france (12/03/2010 at 12:01)

Midfield General, 12/03/2010 at 10:55 I think its pretty obvious to everyone that you'll take anything said by Glazer & co with a pinch of salt. but neither you, MUST or the RK have come up with a business plan that can be proven to be better than the current one and yet you're telling people we should act! when the facts are there for all to see than and only then can you seriously expect fans to take some sort of action, until then its just all hot air & a waste of energy.

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