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SCOTT BARANCIKThe Bucs owner's shares of Manchester United raise questions about his intentions - and wherewithal.
Malcolm Glazer may cherish his 2003 Super Bowl ring, but the Tampa Bay Buccaneers' owner could have his sights set on another champion across the Atlantic.
His burgeoning investment in Manchester United is raising questions about whether he will seek control of the highly profitable and popular soccer club - and where he would get the cash to do it.
Glazer has quietly accumulated a 16.3 percent stake in Manchester United over the past year, starting with his disclosure of a 3.1 percent interest in September. At Monday's closing price on the London Stock Exchange, the Malcolm I. Glazer Family Limited Partnership's shares were worth roughly $217-million.
Under British regulations, a formal takeover offer must be tendered when an investor's ownership reaches 30 percent.
British media are abuzz. An editorial in the Manchester Evening News said Glazer had "no grasp" of the passion Manchester United inspires in fans almost everywhere but the United States and, as owner, might even raise ticket prices to boost profits.
"Mention Manchester United to Malcolm Glazer and he won't think of (former stars) Denis Law and Eric Cantona," the newspaper said. "Dollar signs will be flashing instead."
An offer is possible within weeks, the Observer said Sunday.
Some newspapers reported that the famously reticent Glazer was spurring takeover speculation only so he could sell his shares at a large profit, a strategy they said the Rochester, N.Y., native had employed with some other investments. Indeed, Manchester United's stock price has more than doubled over the past year since Glazer and several other new investors began gobbling up stock.
Glazer's primary competitors, it would seem, are Irish horse-racing tycoons John Magnier and J.P. McManus, who have accumulated a 29.2 percent stake in the soccer club almost as swiftly. So far, the pair have chosen not to breach the 30 percent threshold.
Glazer set off a new wave of speculation and confusion Monday when his family partnership issued a news release about its intentions vis-a-vis the soccer club.
"As with any investment, (the partnership) is considering its possible options, which may include increasing its shareholding or decreasing its shareholding," it said. "It could also include a possible offer for or a possible sale of its shareholding in Manchester United."
Another mystery is how Glazer would pay for Manchester United.
Though Forbes ranked him America's 244th-richest citizen last year, the magazine placed Glazer's net worth at $1-billion. That figure included the Buccaneers, which Forbes valued separately at $671-million. Glazer bought the team for $192-million in 1995.
As became clear during Glazer's pursuit of the Los Angeles Dodgers last year, owning the Buccaneers would be of no help financially unless he were to sell the team. National Football League rules prohibit owners from using their team as loan collateral to purchase another professional squad.
So how could Glazer afford Manchester United, a team likely to sell for three or four times the Dodgers' sale price?
One possibility would be an outside partner. Citing anonymous sources, Dow Jones Newswires has reported that a Russian billionaire, possibly former oil company chief Ralif Safin, might provide Glazer with the necessary funds. Glazer would begin by buying enough stock from Irish investors Magnier and McManus to pierce the 30 percent ownership threshold. He would appoint his own executives, including, as with the Bucs, some of his own family members.
How soon such a move might take place was not clear. Manchester United's stock, near its several-year high, is pricey at the moment. A call for comment to Glazer's investment company was not returned.
If he does make a bid, Glazer still wouldn't be the first overseas billionaire to buy a British soccer club. Russian oligarch Roman Abramovich bought the Chelsea team last year.
The team now is popularly known as "Chelski."
- Information from Times wires was used in this report. Scott Barancik can be reached at barancik@sptimes.com