THE GLAZER EFFECT

Last updated : 28 July 2006 By Editor
The imminent arrival of Carrick does nothing to render this irrelevant. From Square Football yesterday:

The Glazer family has owned Manchester United for around fourteen months now, and finally the reality of that purchase is starting to be felt by even the most optimistic of the 'wait-and-see' fans. The majority of match going fans were reassured by the business-as-usual stance at the club.

But 2006/7 is barely three weeks away and transition is now being replaced by decline.

As we approach the end of the third transfer window of the Glazer reign, it is clear that the club is being squeezed so hard that decline is now inevitable.
Firstly the Glazers have dumped much of their personal debt arising from the takeover onto the club, the rearrangement of the finances last week rolled £63m interest into the debt - but cunningly - the same amount was additionally secured against the football club. In simple terms all the interest that was piling up on the Glazers has simply been pushed onto the club.

Anyone with the glib argument of 'why would they sink so much of their own money into the club only to run it into the ground' needn't bother repeating it, it won't be long before the Glazers will have no financial risk attached to this deal.

Secondly as a result of annual interest payments now reduced to, reportedly, 'just' £42m per season the squad cost cutting is rampant. As many reserves as possible are being farmed out on loan, and fringe players are being sold or released. There are fewer professionals at Old Trafford than there have been for the length of Sir Alex Ferguson's stewardship.

Increasingly Ferguson is being forced to draw the wagons around his first team squad and (very much like the dog-days of Ron Atkinson) to hell with the rest.

Revenues have been driven remorselessly up with a few million extra from sponsorship, plenty more from TV - and a big increase in ticket prices (up 25% in two seasons), so the cost cutting is a policy not a reaction to falling revenues.

The cost cutting and penny-pinching is indicative of a structure that is short of cash. I've always believed that The Glazers bought the club with the intention of selling it within three years for a big profit - and the abject transfer market dealings this summer simply support this theory.

Manchester United have actually become nett sellers. It certainly seems that the orders from on high are 'sell-before-you-can-buy' - hardly what you expect from a billionaire and his boys, and not a policy designed to improve the club.

United stand on the cusp of the season likely to lose their serial top scorer - without replacing him - and without a midfield to dominate anyone but the relegation candidates.

Last summer two small purchases (van der Sar, Park) were offset by similar sales (Neville, Kleberson); in January the gaping defensive holes were iffily plugged with Vidic and Evra costing around £12m.

This summer the sales of Mikel, Spector and probably van Nistelrooy, balanced by the probable purchase of Carrick, will leave United with a nett transfer budget of nothing since the arrival of the Glazers.

The number of United fans who believed in some mythical £25m annual transfer budget must now be falling daily.

Next summer when ticket prices go up £100 for the third season running, with a team in decline and every penny from a support that is being soaked remorselessy going to pay off debt hoisted on to the club by their 'owners' everyone can draw their own conclusions. A club that was self-reliant, debt-free and funded by its fan-base two years ago is now a debt-driven monster.

As Ferguson's hands are tied in the transfer market it may be unfair, but expect the 'Fergie out' chants to start ringing round the stadium as soon as he has celebrated twenty years in charge - with the nasty songs about the Glazers expected to be resumed somewhat sooner.