HOLD FIRE WITH THE SKIPS

Last updated : 30 November 2004 By editor
By Ashling O'Connor The Times

Another investment bank risks incurring the wrath of Manchester United Fans.HSBC is under fire for its threat to withdraw the credit card processing service it provides to Shareholders United (SU), the influential fans group. The investment bank has decided it cannot continue without the safety of a large deposit to offset a theoretical liability it would incur if SU was dissolved and members tried to claim refunds on the balance of their membership fees.
SU, a not-for-profit group, cannot afford the deposit and would be forced to withdraw the service that allows supporters to join over the internet. About 80 per cent of the 10,000 new members SU has gained during the past two months (in reaction to the threat of Glazer) signed up online. Each is spending on average between £50 and £100 on shares. SU’s scheme, operated by Brewin Dolphin, the stockbrokers, through the Co-Op Bank, is the cheapest way for ordinary fans to buy small numbers of shares. It now has 18,500 members.
Supporters believe that HSBC should show more loyalty as it used to be the club’s financial adviser, while Sir Roland Smith, the former United chairman, was a consultant to the bank up until his death last year. SU is urging its members to write to Sir John Bond, HSBC’s group chairman.


Also from the Times
By Ashling O’Connor

A POTENTIAL white knight suitor for Manchester United has emerged as supporter groups continue to structure a defence against a possible takeover by Malcolm Glazer. A well-respected Middle Eastern government is understood to be willing to invest at least £250 million in the club. An intermediary acting for an Arab sheikh is said to have made an inquiry a month ago about buying a stake in United. No approach has been made to any of the existing shareholders, but the preliminary discussions are believed to involve Keith Harris, the City financier who is trying to broker a supporter-led financial restructure of the club.