With a formal takeover bid expected to be submitted by
the Red Knights, a group of wealthy individuals and financiers,
within four weeks, revelations of the Glazers’ refusal to sell the
club for almost double the £790 million valuation of their 2005
buy-out will only emphasise their determination to swiftly dismiss
the offer.
The Red Knights, led by Goldman Sachs economist and former
Manchester United PLC director
Jim O’Neill, are understood to be close to finalising a £1.2
billion offer for United following discussions with Japanese
investment bank Nomura and City lawyers Freshfields over the
structure of the bid.
But despite an increasingly vociferous and visible campaign to
drive the Glazers out, the Florida-based family are now keen for
the Red Knights to make their move so the uncertainty over the
club’s future can be addressed with an unequivocal statement of
their intention to remain for the long term.
Sources close to the Glazers have confirmed that the family have
rejected “numerous” offers for the club during their five years as
owners, with the £1.5 billion bid from the unnamed Middle-East
suitor understood to be the most substantial.
Throughout the Red Knights’ campaign of building support, both
financially and within the club’s fan base, the Glazers have
consistently maintained their stance that United are not for
sale.
And the family are understood to be bemused by the continuing
attempts by the Red Knights to fund a bid, despite the group being
made aware by figures within the City that there is no desire in
Florida to sell.
It is understood that the Red Knights have canvassed key figures
within the investment bank Rothschild, who advised the Glazers
during their successful takeover bid in 2005, to gauge the family’s
intentions, only to be told that a sale was not on the agenda.
While the Glazers overcame fierce supporter-led opposition to
complete their leveraged takeover five years ago, hostility on the
terraces intensified earlier this year following the £500 million
bond issue aimed at restructuring the club’s debts, with the
overall figure increasing to £716.5 million.
And despite the bond issue proving a success, the green-and-gold
campaign, led by the supporters’ group MUST, has subsequently
provided a focal point for the fans’ opposition to the Glazers. The
family have been unmoved by the protests, however, and remain
intent on strengthening their grip on the club by continuing to
exploit the global strength of the club’s brand.
The club’s commercial income under the Glazers has grown by 65
per cent since 2005 and United’s London-based commercial operation
has generated more than £130 million in worldwide sponsorship deals
and partnership agreements since opening for business two years
ago.
United have also struck deals with telecommunications companies
in Africa, the Middle East, India and the Far East ahead of the
anticipated growth of fans being able to watch matches on mobile
phones.
With £80 million banked from the sale of Cristiano Ronaldo to
Real Madrid, Sir Alex Ferguson has been told by the Glazers and
chief executive David Gill that he has substantial funds if he
wishes.
Ferguson’s reluctance to operate at the top end of the financial
scale, borne out by his admission last week that he has “no plans
to spend big this summer”, have led to the perception that the
Glazers are controlling the purse strings tightly, but the owners
have given Gill and Ferguson an unrestricted mandate to attract new
players.
And while there are plans by supporters to protest against the
Glazers again during Sunday’s final home game of the season against
Stoke City, with 50,000 anti-Glazer banners and 10,000 whistles set
to be handed out, the Americans are unlikely to be fazed.
They apparently regard owning United as comparable to living in
the 'best house at the top of the hill’, and, with nothing to match
it elsewhere, have no desire to allow anybody else to enjoy the
view.