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INCREASING SHAREHOLDING Glazer had owned shares in the club since 2003 , possibly earlier. On 26 September 2003 , it was reported that he had increased his share to 3.17%, taking his shareholding above the 3% threshold at which he had to inform the club's management about it. There had already been considerable speculation about the possiblility of a takeover of the club, either by Glazer or by one of several other interested parties. By 20 October , he had increased his shareholding to 8.93%, and on 29 November it was reported that he owned around 15% of the club and had met David Gill , its chief executive, to discuss his intentions. On 12 February 2004 , Glazer increased his stake in the club to 16.31% and the following day's Financial Times reported that he had instructed Commerzbank to explore a takeover bid. The club's share price increased by 5% that day, valuing the club at a total of £741m. Glazer increased his shareholding to over 19% the following June, although he was still not the largest shareholder. GAINING CONTROL On 12 May 2005 , Glazer reached an agreement with Shareholders J. P. McManus and John Magnier to purchase their 28.7% stake in the team, giving him a controlling stake with just under 57% of the team's shares. He then managed to secure the stake of the third largest stakeholder, Scottish mining entrepreneur Harry Dobson, taking his share total to 62% of the club. Just hours later, Glazer had bought a further 9.8% stake taking his total ownership to 71.8%. On 16 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 , which he did on 22 June . On 14 June , 2005 , Glazer successfully increased his share in the club to 97.3%, sufficient enough for full control. On 28 June he increased his share to 98%, enough for a compulsory buyout of all remaining shareholders . The final valuation of the club was $1.47 billion. Glazer appointed his sons, Joel Glazer , Avram Glazer and Bryan Glazer as Manchester United board members, to replace the vacancies of resigned board members, some of whom, like Sir Roy Gardner , resigned in protest. According to Smithfield, the London -based Public Relations firm representing the family, Joel Glazer has been the driving force in the takeover bid and will continue in that role. Joel was said to have been an avid Manchester United supporter prior to the takeover, but it's uncertain if he had attended a match before then. THE FUTURE The Glazer family's intentions for United remain unclear, but it is thought they will try to expand the club's brand name in the United States , as well as in Asia , where United also have a loyal following. As a result of Glazer's takeover, a sizeable group of disgruntled United supporters created a new club called FC United Of Manchester , which was accepted into the North West Counties League second division, six promotions away from The Football League , and secured promotion in its first season as league champions. With average attendances of around 3,000, the support for FC United is indisputably modest compared to that of its illustrious forebear, but this new team is extremely well-supported, considering the somewhat lowly league the team plays in. Many Manchester United fans are concerned that interest payments will result in financial difficulties, and suggest that the club will eventually go into financial administration, or even insolvency. There is certainly some justification for these fears, given the financial problems suffered by many high-profile teams in England over the past decade or so, but to date, the club has continued to thrive, with the 2005-06 season seeing Old Trafford's capacity being expanded and a lucrative new shirt sponsorship deal signed in April with American company AIG (which, coincidentally, has a large stake in a hedge fund company which helped to fund Malcolm Glazer's takeover of United). NOTES |
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