Red Knights step up their bid to buy Man Utd
Mon 12th Apr 2010 | Clubs Ownership
More than 40 wealthy investors stand ready to put their money into the bid to buy Manchester United being planned by the Red Knights group of entrepreneurs as reported in the Observer newspaper.
The Red Knights are said to have been meeting weekly at the London offices of financial adviser Nomura to hammer out the final details of the bid. They are now deciding whether to have 50 investors paying £10 million each, or fewer investors paying more per head, in a £500 million contribution to the £1.25 billion deal. The rest of the bid will be made up from securities issued to Manchester United fans, raising £250 million, and the £500 million bond which the club issued earlier this year and the new buyers plan to retain.
The investment team's plan is to eventually hand ownership of the club back to the fans, in the mould of Spanish club Barcelona, which is owned by 100,000 “socios”, or club members. But the Red Knights admit they will have a tough task working out a structure for the deal that will satisfy the “egos and testosterone” of the investors queuing up to back the bid. The vision of Jim O'Neill, the economist leading the Red Knights, is that the investment will be an act of altruism, delivering only a small return.
Manchester United's current owners the American Glazer family still say the club is not for sale. But The Observer quoted Philip Long, a partner at accountancy firm PKF, as saying “It will be [for sale] – everything's always for sale.”
“The model at the moment isn't profitable unless they sell players. The club can't continue making the losses it's made.”
Google
Yahoo
Live
del.icio
DiggRelated Articles
Ebbsfleet United Appoint New Chairman
Wed 23rd May 2012 | Clubs Ownership
MyFootballclub have announced today that Jessica McQueen has been appointed as Chairman of Ebbsfleet United Football Club for the coming year following a member vote. Jessica, a member of...
Liverpool fans call for end to 'chaos'
Tue 22nd May 2012 | Clubs Ownership
Liverpool owners have been challenged to publicly explain their strategy for the club by a leading fans group. Spirit of Shankly, who led the protests against the despised former regime of Tom Hicks...
Premier League rule out Rovers investigation
Thu 10th May 2012 | Clubs Ownership
The Premier League have dismissed an MP's calls for an investigation into Venky's takeover of relegated Blackburn Rovers. And the Premier League say they are confident the club will remain financially...
Rangers Administrators Announce Preferred Bidder
Thu 3rd May 2012 | Clubs Ownership
Rangers Administrators Duff & Phelps have announced Bill Miller as the preferred bidder for the Scottish Premier League side. Paul Clark, joint administrator announced the American...
