Manchester United - Soccer

[R. Richard]

This is a followup to someone else's post made before the beginning of the season. There was considerable worry as to how Manchester United would fare under the takeover by Malcolm Glazer. The apparent answer is, "Just fine!" Manchester U finished second behind Chelsea, but did win the League Cup. Despite the debt racked up by Glazer's purchase, the club did add important players. Comment?

United weather Glazer storm

MANCHESTER, England, May 11 (Reuters) - Twelve months on from the controversial takeover by Malcolm Glazer it is apparently business as usual at Manchester United.

The 800 million pounds ($1.49 billion) buy-out of the premier league club by the United States-based Glazer family on May 12 last year went down like a lead balloon with a large section of United's supporters.

Yet despite heated protests and violent clashes at Old Trafford last summer and talk of damaging boycotts of tickets and club merchandise, United seem to have weathered the storm.

"What the change of ownership has done is bring stability to the club," chief executive David Gill said in a recent interview.

"In terms of the owners, we're in a better shape than we were a year ago just from a shareholding perspective.

"A year ago we were a quoted company, but... we didn't have a lot of institutional shareholders.

"We had the Glazers owning just under 30 percent, the Irish investors owning just under 30 percent etc. The actual number of shares owned by normal city institutions was 10-15 percent.

"So we had all the exposure and associated costs of being a quoted company, but we didn't have any of the benefits because we effectively had a semi-private shareholding base.

"What we now have is greater clarity - we know who the owners are."

With the Glazers having to borrow 540 million pounds to finance the United deal, critics have queried the measures that may be needed to make future repayments.

Gill said: "We've obviously got more debt than we had in the balance sheet a year ago.

"One of the concerns that the plc board had before the Glazers took over and the comments we made publicly was about the aggressiveness of their business plan and the level of the debt associated with that.

"It's quite interesting because that business plan is not the business plan we have today. For example, their business plan assumed that (shirt sponsors) Vodafone would continue at nine million pounds a year.

"Now that is clearly going to change next year. We are going to get 14 million versus nine million. Things change."

On the field United again had to settle for second place in the league behind Chelsea but as well as winning the League Cup they also secured automatic qualification for the lucrative Champions League next season.

Where United say they have felt the benefit of the Glazer ownership is in the recruitment of players.

The 30 million pounds signing of Wayne Rooney in August, 2004 wiped out the playing budget, imposed by the plc which previously ran the club, for 2005/06.

There was just enough left to recruit goalkeeper Edwin van der Sar as a replacement for Roy Carroll.

But during the January 2006 transfer-window Glazer and his sons Joel, Avi and Bryan sanctioned close to 12 million pounds worth of signings in defenders Nemanja Vidic and Patrice Evra.

Gill said: "Their experience in Tampa (Bay Buccaneers NFL team) means they understand the importance of success on the pitch to success off it. They want to support the manager."

This summer manager Alex Ferguson will be permitted to spend again, albeit helped, it would appear, by income from the likely sale of striker Ruud Van Nistelrooy.

The Glazers' other major coup this year came with the securing of a record sponsorship deal by United with insurers American International Group.

Vodafone's decision to end their shirt sponsorship deal looked like a major blow for United until they unveiled a four-year deal with AIG worth 56.5 million pounds.

That would doubtless cheer 78-year-old Malcolm Glazer as he continues his recovery from a stroke last month and the sons who all have seats on the United board.

Supporters groups campaigned vociferously against the takeover 12 months ago, worried that they would be hit in the pocket by rapidly rising ticket prices.

But so far United's attendances have not been affected, with 73,000 watching United's final home game against Charlton Athletic - a premier league record.

Average ticket prices have risen by 12.3 per cent but United insist they have retained a "sensible price policy" which ranks them in the middle of the premiership's price league.

With extra facilities in some newly developed areas of Old Trafford, United have also increased their match-day revenue from executive tickets from 37 to 46 per cent.

Opposition remains, but Mark Longden, chairman of the Independent Manchester United Supporters Association said: "We have had to grin and bear it.

"Once it was actually a done deal there was very little we could do. We felt completely impotent.

"Under the surface there is an animosity towards the Glazers among most United fans, but the decision they have come to is that they are here now.

"There is nothing they (the fans) can do about it and they support the club through thick and thin and I respect that view.

"The only time you will see a return to open hostility is if things go seriously badly on the pitch, players can't be bought and we start getting usurped for players by Liverpool and Arsenal, and if they keep increasing ticket prices."

 

[English Lady]

I'm a Manchester United fan and basically, I'm waiting for the shit to hit the fan. (hopefully not this one!*groans*) It might all look pretty hunky dory right now, but there is that MASSIVE debt in the background and we've got to pay that off, it's going to effect money spent on players somewhere along the line, and I don't know how fans will react when it does.

I think we could have done better this season (and the end of the last) if this Glazer thing hadn't happened. I don't believe that more stability bollocks, it has put players and fans on edge. Players don't know who might get sold to cover debt and fans just didn't like being bought out full stop.

In the end, they've done a crafty deal,as they know true united fans won't give up on the club no matter what and there are LOT of united fans ot there. I love my team, but I don't particularly like the Glazers. I feel taken advantage of.

 

[Colleen Thomas]

I'm a Manchester United fan and basically, I'm waiting for the shit to hit the fan. (hopefully not this one!*groans*) It might all look pretty hunky dory right now, but there is that MASSIVE debt in the background and we've got to pay that off, it's going to effect money spent on players somewhere along the line, and I don't know how fans will react when it does.

I think we could have done better this season (and the end of the last) if this Glazer thing hadn't happened. I don't believe that more stability bollocks, it has put players and fans on edge. Players don't know who might get sold to cover debt and fans just didn't like being bought out full stop.

In the end, they've done a crafty deal,as they know true united fans won't give up on the club no matter what and there are LOT of united fans ot there. I love my team, but I don't particularly like the Glazers. I feel taken advantage of.

In fairness to old Malcom, he did take the Tampa Bay Bucs, perrinial whipping boy of the NFl. in creamcicle orange uniforms, the only franchise to loosee very game in a season since they went to the 14 game scheudel, etc. etc. etc. They are respectable now, they've won a superbowl and their defense has been the best or near the top year in and year out.

The debt wil obviously have to be paid, but as far as I can tell from his football operations, Galzer is no John York or Bill Bidwell. He realizes you have to spend money to make money and I've never seen him scrimp on salary or try to put a team together on the cheap.

So the price of parking may go up, the price of tickets, the price of beer and a hot dog, but not cripplilingly. Where Maclom will try to make his debt up is in probably in the merchandising.

Just a guess, but the fellow has done wonders with a fairly smal market team that was sucking hind tit for years before he bought them.

 

[English Lady]

It grates. Some bugger has come in and took over our team -that's the bit that sticks in the gullet, that's thebit most united fans just don't like.

ticket prices, parking prices and merchandise prices rise -making it harder for many true fans to get to go to a match, making the atmosphere even quieter than it has been before. I know I could never offord to go to a manchester united match now, it's just too expensive.

I guess also the figure of debt is just so astounding, a million is big money,when you get into hundreds of millions it's just mind boggling! And we didn't have that debt before glazer came in. It mgiht be payable, it might go smoothly, it might even boost the club eventually...but it's alot of ifs.

Also, he forced his way in. He took over by force, he was vehmently opposed and still continued, he kept silent for the most part and wouldn't even answer the fans questions - that doesn't endear the fella to us either.

Basically, there's this cliched quote that says "Football isn't a matter of life or death, it's more important than that." And that knid of mentality means that British football fans don't like their game and their team being mucked about with.

And we don't like change I guess

 

[Colleen Thomas]

It grates. Some bugger has come in and took over our team -that's the bit that sticks in the gullet, that's thebit most united fans just don't like.

ticket prices, parking prices and merchandise prices rise -making it harder for many true fans to get to go to a match, making the atmosphere even quieter than it has been before. I know I could never offord to go to a manchester united match now, it's just too expensive.

I guess also the figure of debt is just so astounding, a million is big money,when you get into hundreds of millions it's just mind boggling! And we didn't have that debt before glazer came in. It mgiht be payable, it might go smoothly, it might even boost the club eventually...but it's alot of ifs.

Also, he forced his way in. He took over by force, he was vehmently opposed and still continued, he kept silent for the most part and wouldn't even answer the fans questions - that doesn't endear the fella to us either.

Basically, there's this cliched quote that says "Football isn't a matter of life or death, it's more important than that." And that knid of mentality means that British football fans don't like their game and their team being mucked about with.

And we don't like change I guess

I understand completely. I can imagine the outcry over here if the roony's or Mara's sold their team to someone from another country. Or the yankees.

I was just trying to give you a little light in the stormy clouds. If, it was going to happen eventually, and considering the money some of these guys have to play with, it was, You could have done a lot worse tha Glazer. He at least cares about winning and tries to put a quality product on the field. Some of our owners treat their teams purely as ani nvestment and since they know the fans will come, they scrimp on salary and put a bad product on the field.

 

[R. Richard]

I was just trying to give you a little light in the stormy clouds. If, it was going to happen eventually, and considering the money some of these guys have to play with, it was, You could have done a lot worse tha Glazer. He at least cares about winning and tries to put a quality product on the field. Some of our owners treat their teams purely as ani nvestment and since they know the fans will come, they scrimp on salary and put a bad product on the field.

Glazer is an astute businessman. He realizes that the fans will come to see the team in numbers only if the team is good. Glazer has always been willing to spend money to get good players for his teams. He does not spend money like the Yankees do, but he does seem to get value for what he spends. I suspect that the same pattern will be followed with Manchester United.

The reserves have done well this year and, IMHO, Manchester United fans can look forward to seing a very good Red Devils team at Old Trafford for years to come.

 

[English Lady]

I understand completely. I can imagine the outcry over here if the roony's or Mara's sold their team to someone from another country. Or the yankees.

I was just trying to give you a little light in the stormy clouds. If, it was going to happen eventually, and considering the money some of these guys have to play with, it was, You could have done a lot worse tha Glazer. He at least cares about winning and tries to put a quality product on the field. Some of our owners treat their teams purely as ani nvestment and since they know the fans will come, they scrimp on salary and put a bad product on the field.

Thanks, love and it's not all bad, we finished second, won the league cup and we've got automatic entry to the champions league next year which will ease fixture congestion. I just hope the good continues

And Ronaldo continues to whip his top off to celebrate...*drools*

 

[ishtat]

Another factor which makes the Glazers look like winners is the recent renegotiation by the Premiership clubs of their TV/Cable deals. The increases in revenue to all the clubs is massive and With Man U as the star attraction their value is significantly increased.

The most interesting feature I think is that it is inevitable that other clubs such as Liverpool and Arsenal will have to be recapitalised to give them the capacity to compete with Chelsea and Man U. This will almost certainly see further concentration of ownership of the biggest clubs. it's just a question of time.

 

[English Lady]

Another factor which makes the Glazers look like winners is the recent renegotiation by the Premiership clubs of their TV/Cable deals. The increases in revenue to all the clubs is massive and With Man U as the star attraction their value is significantly increased.

The most interesting feature I think is that it is inevitable that other clubs such as Liverpool and Arsenal will have to be recapitalised to give them the capacity to compete with Chelsea and Man U. This will almost certainly see further concentration of ownership of the biggest clubs. it's just a question of time.

This also bothers me. I don't like how the premiership is bcoming a league of haves and have nots. Chelsea have a millionaire chucking money at them, they can buy who they like for whatever they like -if you ask me that seems a tad unfair. Ask a chelsea fan and they'll tell you to go get your own millionaire...

Anyway, back on track why should it come down to a matter of money? Look at this years league table, Chelsea 8 points ahead up top, United and then liverpool close together then something like 15 points between them and Arsenal (not sure on the exact figure) that is a crazy gap -and it's only going to lead to ver boring, very predictable seasons and that can't be good for the game.