Sumadinac
May 12th, 2005, 07:45 PM
--looks like Malcom is following his brother Abramovitz lead--
LONDON (AP) - After a two-year quest, Malcolm Glazer has gained control of the world's richest soccer team.
Despite bitter resistance from fans opposed to the American's takeover, the owner of NFL's Tampa Bay Buccaneers became the majority shareholder Thursday of Manchester United.
His ownership reached 56.9 percent after buying a 28.7 percent share held by Irish racehorse owners J.P. McManus and John Magnier.
Glazer offered 300 pence (US$5.58; €4.40) per share as part of his 790.3-million-pound (US$1.47 billion; €1 billion) bid for the storied club. He bought his first stake (2.3 percent) in the team in March 2003.
Financial analysts said the deal seemed certain to succeed, and suggested Glazer's ownership could quickly reach the critical 75-percent threshold. At that level, he could take the club private.
United share prices rose 13 percent to 298.75 pence (5.57; €4.38) on news of the sale.
"The stake held by the Irishmen was always going to be the key to the bid," said Roy Kaitcer of Manchester stockbrokers Brewin Dolphin Securities. "He obviously has a great platform to start his bid.
"Once other shareholders see what has happened, they will say they better take that as well. It looks like Mr. Glazer is on his way to owning Manchester United."
Added Professor Bill J. Gerrard of Leeds University Business School: "He now controls the destiny of Manchester United. It's as simple as that."
Opposition to the takeover was swift, with several hundred fans gathering Thursday outside Old Trafford stadium to protest.
Anti-Glazer sentiment was running high at Old Trafford after the news of Malcolm Glazer's Manchester United takeover. (Matthew Lewis / Getty Images)
English fans fear Glazer will raise prices, and sell off key assets like Old Trafford. They also resent foreign ownership of the tradition-steeped English club.
"I'm giving up my season ticket," said Shareholders United president Nick Towle. "I'm not putting a penny of my money into this guy's pocket."
"I'm very sad. It's a really sad day for Manchester United, for the supporters, for the whole club and I think it's a sad day for football in general."
Shareholders United represents 17 percent of the club's stockholders, a number estimated at 20,000. Towle said at least half - and maybe all - would give up their tickets and stop attending games.
Former team manager Tommy Docherty described the reclusive Glazer as a man "who knows nothing about football."
"Manchester United's heart and soul has been sold today," he said. "It has changed for ever today."
In a report February by British accounting firm Deloitte summarizing revenues for the world's top soccer clubs, Man United was listed No. 1 for the 2003-2004 season at US$311 million (€259 million). Spain's Real Madrid was No. 2 at US$283 million (€236 million), followed by Italy's AC Milan, Chelsea of England, and Juventus of Italy.
The FA Cup
Final
Sat., May. 21
Arsenal vs. Man Utd.
Photos | Fixtures and Results
FAC on BigSoccer
Support your favorite team with official gear from the Fox Soccer Shop!
Glazer's move Thursday came two weeks after Man United's board said it would not recommend his takeover to investors because his business plan appeared "aggressive."
Glazer was given a May 17 deadline to submit a formal plan or withdraw his attempts to buy the club. Glazer's first two proposals were rejected by the board, which said the package relied too heavily on borrowed money.
In a statement, the club said: "The board awaits the formal terms of the Red Offer and a further announcement will be made once the board has reviewed that announcement."
Jeff Kamis, a spokesman for the Buccaneers, said the Glazer family had no comment. Glazer's sons, Joel, Bryan and Edward, are expected to help run the club.
Analysts estimated it would take several months to wrap up the deal, with the formal offer going to remaining shareholders. McManus and Magnier are reported to have made about 100 million pounds (US$186.3 million; €146.6 million) on the sale.
Manchester United dominated English soccer for more than a decade, winning eight Premier League titles in 11 seasons, four FA Cups in 10, and claiming the European championship in 1999.
--
(across the pond)
Andrew Murstein has suddenly emerged as a potential new owner, or in MLS parlance investor/operator, either for a league expansion club or the Kansas City Wizards.
Murstein has served as President of Medallion Financial Services and Medallion Taxi Media, Inc., since their inception in 1994. I reached him at his office in New York.
Sean Wheelock: Why have you become interested in owning a Major League Soccer club?
Andrew Murstein: About 10 years ago I looked at my first sports deal, which was the San Antonio Spurs. We were offered a chance to buy the team at $80 million. I usually don't like jumping into investments before I learn a lot about them, so you could say that this has been a 10-year learning experience. Now that I look back at it, a team that we could have bought for $80 million is probably going for five times that today, probably $400 million. So, while I haven't been focused on sports for ten years, it was a good learning experience to see what happens to sports values over time. Most people don't realize how greatly they appreciate.
SW: When did you start to think about MLS specifically?
AM: Over the last year, we looked at buying the Milwaukee Brewers as well as the Anaheim Mighty Ducks. But ultimately we didn't see a lot of upside in those leagues, and so we turned our attention to soccer all within the last 30 days. The reason that we looked at soccer is because a friend of mine, Dave Checketts, told us what he was doing with Real Salt Lake, and he told us about the upside of the league. He really sold us on the growth potential for soccer.
Potential MLS owner/operator Andrew Murstein. ( / FoxSoccer.com)
SW: What have your conversions with Hunt Sports Group regarding the Kansas City Wizards been like?
AM: I met with Lamar Hunt really to learn more about the league than about the team specifically, and what he saw in the league's potential. I admire his vision and what he built in professional football. Kansas City is a potential for us, but we're really looking at all of our options in Major League Soccer.
SW: It's been widely reported in the Kansas City media that you've made an offer to buy the Wizards. Is that something you can talk about?
AM: I can't really, because we are talking to Lamar Hunt and his people. Until we reach a deal or don't reach a deal, I don't think it's appropriate yet to talk about it.
---
LONDON (AP) - After a two-year quest, Malcolm Glazer has gained control of the world's richest soccer team.
Despite bitter resistance from fans opposed to the American's takeover, the owner of NFL's Tampa Bay Buccaneers became the majority shareholder Thursday of Manchester United.
His ownership reached 56.9 percent after buying a 28.7 percent share held by Irish racehorse owners J.P. McManus and John Magnier.
Glazer offered 300 pence (US$5.58; €4.40) per share as part of his 790.3-million-pound (US$1.47 billion; €1 billion) bid for the storied club. He bought his first stake (2.3 percent) in the team in March 2003.
Financial analysts said the deal seemed certain to succeed, and suggested Glazer's ownership could quickly reach the critical 75-percent threshold. At that level, he could take the club private.
United share prices rose 13 percent to 298.75 pence (5.57; €4.38) on news of the sale.
"The stake held by the Irishmen was always going to be the key to the bid," said Roy Kaitcer of Manchester stockbrokers Brewin Dolphin Securities. "He obviously has a great platform to start his bid.
"Once other shareholders see what has happened, they will say they better take that as well. It looks like Mr. Glazer is on his way to owning Manchester United."
Added Professor Bill J. Gerrard of Leeds University Business School: "He now controls the destiny of Manchester United. It's as simple as that."
Opposition to the takeover was swift, with several hundred fans gathering Thursday outside Old Trafford stadium to protest.
Anti-Glazer sentiment was running high at Old Trafford after the news of Malcolm Glazer's Manchester United takeover. (Matthew Lewis / Getty Images)
English fans fear Glazer will raise prices, and sell off key assets like Old Trafford. They also resent foreign ownership of the tradition-steeped English club.
"I'm giving up my season ticket," said Shareholders United president Nick Towle. "I'm not putting a penny of my money into this guy's pocket."
"I'm very sad. It's a really sad day for Manchester United, for the supporters, for the whole club and I think it's a sad day for football in general."
Shareholders United represents 17 percent of the club's stockholders, a number estimated at 20,000. Towle said at least half - and maybe all - would give up their tickets and stop attending games.
Former team manager Tommy Docherty described the reclusive Glazer as a man "who knows nothing about football."
"Manchester United's heart and soul has been sold today," he said. "It has changed for ever today."
In a report February by British accounting firm Deloitte summarizing revenues for the world's top soccer clubs, Man United was listed No. 1 for the 2003-2004 season at US$311 million (€259 million). Spain's Real Madrid was No. 2 at US$283 million (€236 million), followed by Italy's AC Milan, Chelsea of England, and Juventus of Italy.
The FA Cup
Final
Sat., May. 21
Arsenal vs. Man Utd.
Photos | Fixtures and Results
FAC on BigSoccer
Support your favorite team with official gear from the Fox Soccer Shop!
Glazer's move Thursday came two weeks after Man United's board said it would not recommend his takeover to investors because his business plan appeared "aggressive."
Glazer was given a May 17 deadline to submit a formal plan or withdraw his attempts to buy the club. Glazer's first two proposals were rejected by the board, which said the package relied too heavily on borrowed money.
In a statement, the club said: "The board awaits the formal terms of the Red Offer and a further announcement will be made once the board has reviewed that announcement."
Jeff Kamis, a spokesman for the Buccaneers, said the Glazer family had no comment. Glazer's sons, Joel, Bryan and Edward, are expected to help run the club.
Analysts estimated it would take several months to wrap up the deal, with the formal offer going to remaining shareholders. McManus and Magnier are reported to have made about 100 million pounds (US$186.3 million; €146.6 million) on the sale.
Manchester United dominated English soccer for more than a decade, winning eight Premier League titles in 11 seasons, four FA Cups in 10, and claiming the European championship in 1999.
--
(across the pond)
Andrew Murstein has suddenly emerged as a potential new owner, or in MLS parlance investor/operator, either for a league expansion club or the Kansas City Wizards.
Murstein has served as President of Medallion Financial Services and Medallion Taxi Media, Inc., since their inception in 1994. I reached him at his office in New York.
Sean Wheelock: Why have you become interested in owning a Major League Soccer club?
Andrew Murstein: About 10 years ago I looked at my first sports deal, which was the San Antonio Spurs. We were offered a chance to buy the team at $80 million. I usually don't like jumping into investments before I learn a lot about them, so you could say that this has been a 10-year learning experience. Now that I look back at it, a team that we could have bought for $80 million is probably going for five times that today, probably $400 million. So, while I haven't been focused on sports for ten years, it was a good learning experience to see what happens to sports values over time. Most people don't realize how greatly they appreciate.
SW: When did you start to think about MLS specifically?
AM: Over the last year, we looked at buying the Milwaukee Brewers as well as the Anaheim Mighty Ducks. But ultimately we didn't see a lot of upside in those leagues, and so we turned our attention to soccer all within the last 30 days. The reason that we looked at soccer is because a friend of mine, Dave Checketts, told us what he was doing with Real Salt Lake, and he told us about the upside of the league. He really sold us on the growth potential for soccer.
Potential MLS owner/operator Andrew Murstein. ( / FoxSoccer.com)
SW: What have your conversions with Hunt Sports Group regarding the Kansas City Wizards been like?
AM: I met with Lamar Hunt really to learn more about the league than about the team specifically, and what he saw in the league's potential. I admire his vision and what he built in professional football. Kansas City is a potential for us, but we're really looking at all of our options in Major League Soccer.
SW: It's been widely reported in the Kansas City media that you've made an offer to buy the Wizards. Is that something you can talk about?
AM: I can't really, because we are talking to Lamar Hunt and his people. Until we reach a deal or don't reach a deal, I don't think it's appropriate yet to talk about it.
---