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Manchester United taken fully private control
(Agencies)
Updated: 2005-05-17 10:08
Malcolm Glazer became a soccer Yankee in the queen's court Monday, much to
the ire of his new subjects. The reclusive owner of the Tampa Bay Buccaneers
took control of Manchester United, increasing his stake in the world's richest
soccer club to more than 75 percent.
The front of Manchester
United's stadium, Old Trafford. US sports tycoon Malcolm Glazer was poised
to take control of Manchester United on the financial pitch amidst muted
protests from the spectator stands and analysts' curiosity over his
long-term game. [AFP] |
Glazer bought
2.3 million more shares, giving him 75.70 percent by the end of Monday's
trading, Glazer's Red Football Ltd. told the London Stock Exchange.
At that level, Glazer can place his personal debt on United's books and move
the club off the stock market and into private ownership. The club has been
listed on the stock exchange since 1991.
The NFL, which usually frowns upon cross-ownership, isn't sure if its rules
would prevent Glazer from owning a foreign club. The league's finance committee
will discuss it during spring meetings in Washington next week.
Glazer's $1.47 billion takeover is sharply opposed by Manchester United fans'
associations. They fear the club will be saddled with debt, and worry Glazer
could sell off the club's 67,000-seat Old Trafford stadium and raise prices.
Fans groups are calling on supporters not to renew their season tickets, to
cancel subscriptions to Manchester United's in-house television station, and
boycott sponsors Vodafone, Nike, Budweiser and Audi.
Demonstrations are planned at the FA Cup final between Manchester United and
Arsenal on Saturday in Cardiff, Wales.
"We are calling on all supporters to wear black," said Mark Longden of the
Independent Manchester United Supporters Association. "If they can get hold of
black flags, they should wave them because it represents what is happening to
the club."
Glazer's ownership reached 56.9 percent on Thursday after he bought out joint
majority shareholders J.P. McManus and John Magnier, Irish racehorse owners. He
previously owned 28.1 percent of the club.
Glazer acted quickly Monday to snap up enough shares to break through the 75
percent threshold. By the close of trading Friday, he had owned 74.81 percent of
the stocks. Glazer is offering $5.55 per share.
Glazer is expected to submit a formal document to shareholders on Wednesday.
Financial analysts said Glazer could soon raise his stake to 90 percent. At
that level, remaining shareholders would be required to sell their stocks to
Glazer.
"It's never that easy to get over 90 percent and so it could take some time,"
Hilary Cook of Barclays Stockbrokers said. "But he's got what he wants and it
has happened with astonishing speed."
Glazer told the stock exchange Friday he would borrow $490 million to fund
the takeover.
The bid also includes $503 million of his own money, and another $509 million
to be generated by issuing preferred securities to large investors.
"The issue now is about what the man's vision is," said Richard Hunter of
Hagreaves Landsdown stockbrokers. "There are questions around repaying the debt
and making Manchester United a much bigger brand than it is now."
Speculation that United manager Alex Ferguson could leave the team evaporated
Monday when he announced that two key players — Wales winger Ryan Giggs and
American goalkeeper Tim Howard — had signed long-term contract
extensions.
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