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| UPDATED
EVERY FRIDAY
Last Update:
Friday 27th May, 2005 |
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| All
content © New Journal Enterprises, 2005. |
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| FORUM
- by Jonathan Michie |
| Fans need to fight the power of football
Plc |
Without the support
of the fans, Malcolm Glazer’s buy out of Manchester
United faces a rocky ride, writes academic Jonathan Michie
Is football returning to the old days, when clubs were the
play-things of wealthy businessmen? With Roman Abramovich
owning Chelsea and Malcolm Glazer having Manchester United,
will that be the way for other clubs?
In the 1980s several clubs floated on the stock market, led
by Tottenham Hotspur. The old owners, such as Martin Edwards
at Manchester United, gradually relinquished ownership and
control with a nice pay-off, of course.
This was, after all, the point of the whole exercise, whatever
the public relations rhetoric about ‘encouraging ownership
by the supporters’. In the case of Martin Edwards, he
profited to the tune of around £100 million.
But many fans did buy shares. Even with Glazer owning 75 per
cent of Manchester United, almost 20 per cent is still in
the hands of small shareholders, almost all of whom will be
fans.
Supporters may insist Glazer buys all the remaining shares
to exacerbate the financial difficulties he already faces
in servicing massive debts, which he is attempting to foist
onto the football club.
If that tactic is followed then Shareholders United –
the supporters’ trust at Manchester United – will
urge the selling shareholders to transfer the money into a
fund to buy the club back from the banks or the administrator
once Glazer defaults on his repayments.
But will Glazer fail? The answer lies very much in the hands
of the supporters, which is not a comfortable place for Glazer
to have placed his future. A coalition of the Independent
Manchester United Supporters Association (IMUSA), Shareholders
United, and the three fanzines Red Issue, Red News and United
We Stand are campaigning to stop the revenue flows to Glazer.
Firstly, by refusing to renew season tickets, and cancelling
those that had already been renewed. I’ve just stopped
the £2,000 Visa payment for my four season tickets,
and cancelled my MUTV subscription.
Secondly, by boycotting the merchandise. The fans are also
looking at various options for producing rival produce. Thirdly,
urging the sponsors to withdraw – Nike, Vodafone, Audi
and the others.
There are already reports of Nike discussing internally whether
sponsoring Glazer’s United is going to be a good use
of their money when it will attract such a hostile reaction
and bad publicity. The withdrawal of a major sponsor could
be disastrous for Glazer.
I have an Audi and a Vodafone contract. With others from the
30,000 membership of Shareholders United and beyond, we will
make clear that if they don’t withdraw sponsorship from
Glazer, we will be switching our phone contracts to a rival
network, and our car replacements will be with anyone but
Audi.
Around 17 per cent of Manchester United shares are held by
supporters. If we decide to sell, Glazer will have to hand
over £140 million.
And if Glazer’s financial gamble ends in tears, the
banks or administrator would likely accept a far lower sum
for the club than Glazer is paying.
In which case the £140 million might come to represent
a substantial ownership stake.
The investment bank Nomura has offered Shareholders United
£100 million to add to that. The Glazer take-over has
certainly moved the football business on to new territory.
But it is uncharted and unstable. Ironically, it may hasten
the day when supporters take ownership of a major Premiership
club, alongside the several Football League clubs where supporters
already have ownership and control.
n Jonathan Michie, is a former Birkbeck College professor
and is now director of Birmingham Business School and a national
committee member of Shareholders United. |
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