Scribd Logo
Upload

Welcome to Scribd!

  • ManU SM

    Uploaded by

    Shivang Kapoor
    28 views10 pages
    The Glazer family took control of Manchester United through a series of stock purchases between 2003-2005, eventually acquiring 98% of the club. They financed the purchase with large amounts of debt that was placed on the club. This saddled United with over £60 million per year in interest payments alone. While the Glazers have implemented strategies to increase revenue and reduce costs, their ownership remains controversial due to the use of leveraged debt financing. The document recommends that the Glazers sell the club to help alleviate these financial issues.

    Original Description:

    Original Title

    ManU-SM

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The Glazer family took control of Manchester United through a series of stock purchases between 2003-2005, eventually acquiring 98% of the club. They financed the purchase with large amounts of debt that was placed on the club. This saddled United with over £60 million per year in interest payments alone. While the Glazers have implemented strategies to increase revenue and reduce costs, their ownership remains controversial due to the use of leveraged debt financing. The document recommends that the Glazers sell the club to help alleviate these financial issues.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    28 views10 pages

    ManU SM

    Uploaded by

    Shivang Kapoor
    The Glazer family took control of Manchester United through a series of stock purchases between 2003-2005, eventually acquiring 98% of the club. They financed the purchase with large amounts of debt that was placed on the club. This saddled United with over £60 million per year in interest payments alone. While the Glazers have implemented strategies to increase revenue and reduce costs, their ownership remains controversial due to the use of leveraged debt financing. The document recommends that the Glazers sell the club to help alleviate these financial issues.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 10

    THE GLAZER TAKEOVER

    Presented to
    Prof. Shahin Shojai

    27/02/2011

    Presented by Group-3
    Ankurat Prasad : Kshitij Mehra : Niket Garg
    Sam Tarkeshi : Shivang Kapoor : Vikrant Yadav
    MANCHESTER UNITED : SUCCESS, HISTORY
    • Established in 1878
    • It is the most successful British football club in the world
    • Won 18 EPL titles, 3 Champions League, 11 FA cup & 4 League cups
    • The most valuable soccer team in the world
    • Global fan base of 333 billion, where 190 million are from Asia alone.

    INSTITUTE OF MANAGEMENT TECHNOLOGY,


    12/8/21 2
    DUBAI
    Glazer Takeover : How He Did It ?
    TIMELINE OF A TAKEOVER
    March 2003 - Bought the first Man. Utd. Shares in mid-2003.
    June 2004 - Glazer's stake in club nears 20%

    October 2004 - United confirms bid approach from Glazer, as his stake nears 30%

    November 2004 - Glazer ousts three directors from United's board

    12th May , 2005 - Glazer reached an agreement with shareholders J. P. McManus and John


    Magnier to purchase their 28.7% stake in the team

    He then secured the stake of the third largest stakeholder, Scottish entrepreneur Harry
    Dobson, taking his share total to 62% of the club.

    16th May , 2005 - Glazer took his shareholding in United to 75%, allowing him to end the
    club's PLC status and delist it from the London Stock Exchange

    28th June , 2005 - Increased his share to 98%, enough for a compulsory buyout of all
    remaining shareholders

    INSTITUTE OF MANAGEMENT TECHNOLOGY,


    12/8/21 3
    DUBAI
    Sources Of Revenue
    MATCHDAY
     Domestic League & Cup Tickets
     European Match Tickets
     Travel , Programs , Catering & Hospitality
    BROADCASTING & MEDIA
     TV deals for Domestic Matches
     TV deals for European Matches
     TV rights worldwide
    SPONSORSHIP & COMMERCIAL
     Sponsorships
     Non Matchday Activities (Catering Tours)
     Branded Products
     Other Activities (Betting , Finance)

    INSTITUTE OF MANAGEMENT TECHNOLOGY,


    12/8/21 4
    DUBAI
    PROBLEMS
    • Massive protests against the Glazers and the takeover.

    • The Glazer Family paid a total of £921 million to buy United.

    • They borrowed at least £650 million of that sum, some at 20% compound interest

    • The terms of the debt, which has now been shifted onto the club, means that if it is not
    paid off it increases to £938 million within 5 years. That means the debt is growing at
    more than £300,000 per day

    •  The interest payments are over £62 million a year.

    INSTITUTE OF MANAGEMENT TECHNOLOGY,


    12/8/21 5
    DUBAI
    Financial Analysis

    INSTITUTE OF MANAGEMENT TECHNOLOGY,


    12/8/21 6
    DUBAI
    Glazer’s Current Strategy
    Increasing Revenue
    • Increase in Ticket Prices by 54 % in the last 5 years
    • Increasing Commercial revenue by more sponsorships.
    Eg : Mobi Tickets in Nigeria, DHL Sponsorship

    Reducing Expenditure
    • Applying cap for max. amount of money spent on Player Transfers (₤ 25 Million)

    Refinancing
    • Refinance the debt through a bond issue worth approx. £500 million.
    • Managed to raise £504 million in just under two weeks

    INSTITUTE OF MANAGEMENT TECHNOLOGY,


    12/8/21 7
    DUBAI
    Glazer’s Current Strategy

    Retaining Their Best Talents


    • Making best players sign new contracts. Eg : Wayne Rooney

    Continued Investment in the Playing Squad


    • Grooming home-grown and unknown talents
    • Making them World Class

    INSTITUTE OF MANAGEMENT TECHNOLOGY,


    12/8/21 8
    DUBAI
    Recommendation

    SELL THE CLUB

    INSTITUTE OF MANAGEMENT TECHNOLOGY,


    12/8/21 9
    DUBAI
    Recommendation

    Option 1
    Sell to RED KNIGHTS
    • A group that is a mixture of City bankers and lawyers and lifelong United fans.
    • AIM : To take over MAN. UTD. from the GLAZERS
    • Bid ₤ 1 billion for Man. Utd. , but Rejected.
    Option 2
    Sell to QATAR HOLDINGS
    • Business investment branch of the Qatar Royal family
    • Planning to bid for ₤ 1.6 billion for buying Man. Utd.

    INSTITUTE OF MANAGEMENT TECHNOLOGY,


    12/8/21 10
    DUBAI

    You might also like