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Q&A: What's ahead

By Times Staff Writer
Published May 13, 2005

After years of frustration, how did Glazer finally secure a majority interest in Manchester United?

The linchpins were Irish racehorse tycoons J.P. McManus and John Magnier, who together owned a 28.7 percent stake. The two men had previously declined Glazer's overtures to sell. It's unclear exactly what changed, but the news agency Reuters reported that in earlier discussions with Glazer, the Irish duo had wanted their money up front and were leery of selling their shares as part of broader takeover offer .

How will the Glazers' takeover bid of Manchester United affect their ownership of the Buccaneers?

The Glazers have no intention of selling the Buccaneers, general manager Bruce Allen said Thursday.

Allen indicated that Joel, Bryan and Edward Glazer will continue to serve as the team's executive vice presidents and be involved in the club's daily operations.

Speculation is that Joel, the family's most avid soccer fan, would be the leading candidate to eventually oversee Manchester U.

As for whether the Glazers leveraged the Bucs, which are valued at nearly $800-million, to obtain loans to purchase the world's richest soccer team? NFL owners can borrow up to $125-million for any purpose using their team as collateral. But the league's finance committee will ask to examine the purchase of Manchester United once Glazer reaches the 75 percent ownership threshold.

Now that Glazer has a majority stake, is his takeover of Manchester United complete?

Not yet. Glazer still needs to acquire at least 75 percent of Manchester's shares in order to have a controlling majority that would allow him take the company private or would give him access to the team's income stream. He still was acquiring blocks of shares late Thursday evening by striking deals with large shareholders.

Why have Manchester United fans been so strongly opposed to Glazer's takeover of the team?

Manchester United is England's most storied soccer franchise. The team's fans think that Glazer doesn't appreciate this legacy and that he's only interested in squeezing out profits from the team. Moreover, they fear his acquisition of the financially healthy team will leave it heavily indebted and less capable of acquiring star players, due to the large amount of bank financing he is thought to have used to purchase his shares.

What do analysts think Glazer will get out of the deal?

The potential for a new deal on TV broadcasting rights is thought to be a big attraction. If recent efforts to expand the European soccer schedule via a new "super league" prove successful, the payoff for Manchester United, and for Glazer, could be substantial. There are also untapped revenue sources to exploit, such as selling the naming rights to Old Trafford, Manchester United's home stadium.

The franchise is among the richest in sports. Malcolm Glazer's bid values the team at about $1.47-billion. To put that in perspective, Forbes magazine reports the Washington Redskins are worth $1.1-billion, Dallas Cowboys $932-million, Tampa Bay Bucs $779-million, Devil Rays $176-million and Lightning $136-million as of 2003.

Titles abound, including a record 11 Football Association Challenge Cups, England's most prestigious soccer championshi p (1909, 1948, 1963, 1977, 1983, 1985, 1990, 1994, 1996, 1999, 2004).

Manchester also has won two European Champions Clubs Cups (1968, 1999) and has won the FA Premier League eight times (1993, 1994, 1996, 1997, 1999, 2000, 2001, 2003).

The club has a whopping worldwide fan base estimated by the team at 75-million. Intense interest began after a plane crash on Feb. 6, 1958, that nearly wiped out the team, killing eight players after a match in Yugoslavia. Today, the team says it has 200 fan clubs in 24 countries.

A merchandising deal with Nike guarantees it about $37-million a year with additional millions in bonus provisions.

Sources: Times files, Manchester United Web site

[Last modified May 13, 2005, 00:58:07]