James Miller

 

Thursday, May 12, 2005

 

Glazer and Manchester United

Before I continue, let me say that I'm not a Manchester United fan and never have been. As I'm an Ipswich fan, I have little love for the team from the north.

But!

What is happening to them with Glazer is a disaster for English football! And probably Manchester United in particular!

Let's look at a few dispassionate statistics :-

1. All successful clubs have a pretty good relationship between club owners, directors and fans. Even if say after the selling of a star player they get a bit rocky. But look at Everton this year. They sell Wayne Rooney and then come forth in the Premiership. Are the fans happy now?

2. No owner of a football club, except possibly Manchester United, has ever made any consistent money.

3. Football is a business where costs are pretty much fixed, whereas players can desert at a whim and income can vary very much with success on the field.

4. Many of the non-core and hardline supporters, support the team that wins.

5. Football sponsorship has a strong negative response. For instance, a lot of Spurs fans won't have O2 mobile phones as they sponsor Arsenal.

6. Fans aren't as loyal as clubs would believe they are!

So given that why did Malcolm Glazer want to take over Manchester United?

1. Ego plays a part, especially as a lot of his advisers said no!

2. He obviously believes that he can make money! But that means renegotiating the TV contract to the detriment of the other clubs and would even Chelsea and Arsenal allow that?

3. But has he been pushed into the position where he has to make a bid? Perhaps so! If Magnier et al had offered him three pound a share would Glazer have taken it? They are very bright Irishmen and know the problems they would have got if they'd taken on the fans. A nice profit without risk is what they have taken and good luck to them!

The interesting take on the deal was from Keith Harris, who organised the takeover of Chelsea by Abramovich. Chelsea were in debt to a substantial level, whereas Manchester United were debt-free. After the Glazer takeover, their positions will be reversed. So this obviously reduced budget may well mean that the best players will come south to Chelsea and Arsenal, as after all London is the capital and has the best nightclubs, shops, restaurants and women!

So if they are not doing well on the field, how many of their peripheral fans will desert them too?

But this will not be the only pressure on Glazer, as the hardcore fans are not happy :-

1. Suppose fans decide to go to matches, but not buy any merchandise or hospitality. How much would that cost?

2. Suppose fans decided to wear T-shirts openly hostile to Glazer. What would he do, ban them from the ground? After all hostile T-shirts could be a strong revenue earner for the fans groups.

3. Suppose fans decided to create an unusual atmosphere in the ground. Perhaps, they stayed quiet. Would Sky want to show a really dull match?

4. Would Ferguson stay? After all he nearly went a few years ago and perhaps now, he might decide not to take the hassle.

5. Would the top players stay? They can virtually do what they want now and would they work for an American, who upsets people.

There are a lot of if's and but's.

Glazer's trick will be to create a global brand that brings in enough money, before the fans sink him by destroying his revenue stream.

The future will be interesting! Let's hope that football wins!

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