The Sunday Times:
Manchester United are opposed to Malcolm Glazer’s proposed takeover of their club, and the vast majority plan to boycott buying merchandise, which would cost United a potential £18.5m per season, should the American’s plans succeed, according to two surveys, writes Jonathan Northcroft.
These figures, highly damaging to Glazer’s bid if they are representative, emerged from two separate polls, involving nearly 4,500 United supporters. An online survey of 1,560 United fans, carried out by Benchpoint, the market research group, showed that 97% of respondents were against Glazer taking control at Old Trafford and 78% would be reluctant to spend their money on club and sponsors’ products under a Glazer-owned United. Apart from the £18.5m effect on income, it may hurt sponsors’ revenue by as much as £25m a year, the Benchpoint survey revealed.
This news may concern Glazer and those backing his takeover attempt. The Florida tycoon’s £750m bid for United relies heavily on borrowing, the interest on which could only be paid off should Glazer be able to significantly increase United’s revenue.
Meanwhile, in a survey of 2,921 supporters carried out by the pressure group Shareholders United — albeit conducted exclusively among fans who are part of their 26,500 membership — respondents estimated they would cut their average annual outlay on supporting United from an individual average of £887 to just £145, a drop of 84%.
In contrast, the survey suggested there would be a "peace dividend" if Glazer’s takeover was rebuffed. Shareholders United said that the feelgood factor that would result from defeating the American would encourage them to increase their spending on United products and merchandise by up to £4m per year.
The Sunday Pink:
Malcolm Glazer is about as popular with the United fans as playing the FA Cup semi- final at Cardiff.
An on-line survey from independent market research company Benchpoint, commissioned by the Red News fanzine, showed 97 per cent to be against the American tycoon's involvement with United.
"This survey sends a powerful message of customer power to Glazer, to the plc Board and especially to the club's sponsors, Glazer is bad for your wealth," said Nick Towle, chairman of fans group Shareholders United.
SU are becoming increasingly confident Glazer's plans are floundering, with speculation persisting that major shareholders John Magnier and JP McManus will refuse to sell their 28.9% stake, without which the Tampa Bay Buccaneers owner cannot proceed with the deal.
The Glazer camp refute suggestions that the bid has hit problems, claiming the month that has elapsed since they were granted `limited' access to United's accounts is nothing out of the ordinary.
An update on the situation is expected to be made by United chief executive David Gill on Tuesday, when the club will announce their half-year profits.
Having previously suggested Glazer's proposals were "aggressive" and "potentially damaging", it appears unlikely Gill will be able to recommend a bid if it does eventually arrive.
"It should now be clear to Glazer and his backers that his proposal will be even further undermined if the club and its sponsors find themselves on the receiving end of the fans' anger," added Towle.
The Sunday Telegraph:
Manchester United will on Tuesday be forced to admit that its faltering on-field performance has led to a collapse in profits for the first half of this financial year.
Man Utd, which is expected to receive a formal takeover offer from Malcolm Glazer, the controversial US sports tycoon, within the next few weeks, will post an interim pre-tax profit of around £13m - 50 per cent lower than its 2004 figure of £26.8m. Turnover is expected to fall to about £87m from £92.4m for the first six months of 2004.
The disappointing financial performance will be mainly blamed on falling media income and the performance of the team, coached by Alex Ferguson. The poor figures will put added pressure on the Man Utd board to recommend Glazer's 300p-per-share or £800m takeover offer. Many analysts believe the offer is generous - a view that is likely to be strengthened by Tuesday's results.
It is believed that Man Utd will say on Tuesday that formal takeover talks with Glazer, who holds a 28.1 per cent stake in the club, and his advisers have yet to begin.
Glazer's adviser, the investment bank NM Rothschild, has been conducting due diligence on Man Utd over the past month. Although that process has now concluded, talks between the two sides, which could lead to a formal takeover offer, have yet to commence.
Joel Glazer, the son of the sports tycoon and the architect of the Man Utd deal, is still in the US recovering from a severe bout of appendicitis.
Man Utd's board has acknowledged that Glazer is offering a fair price for the company. But it is unlikely that the board will be able to recommend the offer because of the high level of debt that Glazer is using to fund the takeover bid.
Even if the Man Utd board does not recommend Glazer's bid, the sports tycoon could decide to take his offer directly to the club's shareholders by launching a hostile bid.
He could also seek to oust the Man Utd board by calling an emergency meeting and attempt to vote off the club's PLC directors.
Meanwhile, the Man Utd board is facing the threat of legal action from hedge funds that have taken positions in the club over its refusal to recommend an offer that they have admitted is a fair price.
The success of any bid is dependent on the support of JP McManus and John Magnier, who own a 28.9 per cent stake through Cubic Expression, the investment vehicle. The pair insist they are long-term shareholders in Man Utd. The shares closed last week at 266.5p.
Scotland on Sunday of all places:
Manchseter United will reveal this week that its first half profits have more than halved, piling further pressure on the football club to accept a takeover offer from American billionaire Malcolm Glazer.
Hammered by a £1.1m write-off on the sale of Eric Djemba-Djemba to Aston Villa, a slide in TV revenues and a rising wage bill, the club is tipped to unveil pre-tax profits of £12m - down from £27m last year.
After being knocked out of this year’s Uefa Champions League competition two weeks ago, the prospect of an immediate recovery in those revenues will look remote.
Although it is expected to be at least another 10 days before Glazer tables an update of his £800m bid proposal, the sports tycoon is still keen to land the club.
One source close to the deal said: "We’ll have to leave it to the market to see what they make of the figures, but everything is still progressing step by step.
"It’s taking much longer than everyone seemed to think it would to start with, but neither side is in any particular hurry to do a deal."
After slipping to finish third in the Premiership in the 2003/4 season, having won it the previous year, Manchester United’s share of TV revenues fell.
The highest payouts of media fees from the lucrative Champions League go to the clubs that win their domestic competitions. A new broadcast deal for the Premiership will also dent the club’s first half income because payments are weighted towards the back end of the year, leaving overall television revenues down at least 35%, year on year.
Dresdner Kleinwort Wasserstein analyst Andrew Lee believes the wage bill will be about£2.7m higher, year on year, thanks in part to the signing of Wayne Rooney. Wages are expected to account for 51% of turnover by the full year stage, against 45% last year.
The club agreed to open its books to Glazer last month after accepting that his 300p per share takeover proposal represented fair value. But the board said it could not recommend the offer since the bid structure placed too heavy a debt burden on the club.
Glazer’s advisers at Rothschild completed their due diligence two weeks ago and have since been working on a revised offer. But Glazer’s son Joel, who will take a seat on the Man Utd board if the deal goes through, has been ill - hindering progress.
Glazer has said he will not proceed with a deal without a recommendation from Man Utd chief executive David Gill and the rest of the club’s board.
Such a recommendation would require the backing of Irish horseracing tycoons JP McManus and John Magnier, who own 29.1% and are believed to be in no hurry to sell.