TanyaT
20th October 2005, 17:36
Resolution of the SU Committee first discussed at the sucom meeting in Manchester on 24 September – concerning the future of Manchester United FC and of our organisation.
Shareholders United remains implacably opposed to the takeover of Manchester United by Malcolm Glazer and the dangerous level of potentially crippling debt that has been forced onto our Club. We agreed with the stance taken by the chief executive David Gill, Sir Roy Gardner and the rest of the previous board - that this deal is not in the best interests of the company and that the business plan Glazer will implement, in order to pay back the vast loans and exorbitant rates of interest, will put an enormous strain on the company’s finances and cause great damage to Manchester United Football Club.
Since Glazer completed his takeover, it has become apparent that, not only did he massively overpay to buy the club using huge and expensive debt, but he has acquired United at the peak of the cycle in terms of popularity of the football ‘product’. Falling attendances at grounds; ever-higher ticket prices; too many mediocre games on TV; unsuitable kick-off times - football’s problems are growing and United is not immune. Look at attendances and falling demand at OT this season and the club’s increasingly desperate attempts to sell tickets for both domestic and European games.
Glazer’s business plan and debt repayment is dependent on huge price hikes, particularly on tickets and merchandise. Not only are such hikes unjustified and unfair, they are unsustainable. We believe this will become increasingly apparent over the coming two to three seasons as fans demonstrate that if you treat them solely as customers, they will act like customers too. And higher TV revenues are not looking likely either. On top of all this, will corporate sponsors be willing to pay more for this increasingly tainted ‘product’?
All of this presents a serious threat to Glazer’s business plan, and we are convinced that this plan will fail within 2-5 years. And let’s be very clear about this – it will not be SU which damages MUFC or brings the club down, it will be solely down to Glazer himself and his aggressive and damaging takeover.
Some fans have taken the heart-wrenching decision to stop attending Old Trafford on a regular basis or have chosen to withhold part or all of their usual spending – this is a matter of principle and of individual choice and SU supports them in that choice. More and more fans will exercise this choice over the next couple of years - or will have no other option, when price hikes begin to bite, the prawn sandwich brigade take ever more priority, and other aspects of the style of the Glazer regime become clear. The Disneyfication of OT is already underway with news of a planned ice rink this winter - which the marketeers even have the nerve to say will be ‘overlooked by Sir Matt Busby’. In another couple of years…….MU Glazerdome, anyone?
Just like all supporters trusts, SU has always had as its primary objective the acquisition of an ownership stake in our club. Glazer’s takeover does not change that – in fact the scenario unfolding at United and in football generally makes it even more likely. And SU is now in a far stronger position than it was even one year ago. Our campaign against the Glazer bid was universally acknowledged as powerful – we will now channel our efforts into a positive campaign to prepare for the day when Glazer’s plan collapses under the weight of its own unrealistic and over-reaching assumptions. It is the supporters – the true custodians of the club – who will be there to pick up the pieces.
That is why we are setting up the Phoenix Fund. Most of our energies will be directed to raising money for this Fund from a variety of sources. The Phoenix Fund is aimed at all United fans and anyone with the future health and survival of Manchester United at heart. We owe it to the heritage of our great Club, as well as to future generations of supporters, to unite around this common goal and move forward together.
Shareholders United remains implacably opposed to the takeover of Manchester United by Malcolm Glazer and the dangerous level of potentially crippling debt that has been forced onto our Club. We agreed with the stance taken by the chief executive David Gill, Sir Roy Gardner and the rest of the previous board - that this deal is not in the best interests of the company and that the business plan Glazer will implement, in order to pay back the vast loans and exorbitant rates of interest, will put an enormous strain on the company’s finances and cause great damage to Manchester United Football Club.
Since Glazer completed his takeover, it has become apparent that, not only did he massively overpay to buy the club using huge and expensive debt, but he has acquired United at the peak of the cycle in terms of popularity of the football ‘product’. Falling attendances at grounds; ever-higher ticket prices; too many mediocre games on TV; unsuitable kick-off times - football’s problems are growing and United is not immune. Look at attendances and falling demand at OT this season and the club’s increasingly desperate attempts to sell tickets for both domestic and European games.
Glazer’s business plan and debt repayment is dependent on huge price hikes, particularly on tickets and merchandise. Not only are such hikes unjustified and unfair, they are unsustainable. We believe this will become increasingly apparent over the coming two to three seasons as fans demonstrate that if you treat them solely as customers, they will act like customers too. And higher TV revenues are not looking likely either. On top of all this, will corporate sponsors be willing to pay more for this increasingly tainted ‘product’?
All of this presents a serious threat to Glazer’s business plan, and we are convinced that this plan will fail within 2-5 years. And let’s be very clear about this – it will not be SU which damages MUFC or brings the club down, it will be solely down to Glazer himself and his aggressive and damaging takeover.
Some fans have taken the heart-wrenching decision to stop attending Old Trafford on a regular basis or have chosen to withhold part or all of their usual spending – this is a matter of principle and of individual choice and SU supports them in that choice. More and more fans will exercise this choice over the next couple of years - or will have no other option, when price hikes begin to bite, the prawn sandwich brigade take ever more priority, and other aspects of the style of the Glazer regime become clear. The Disneyfication of OT is already underway with news of a planned ice rink this winter - which the marketeers even have the nerve to say will be ‘overlooked by Sir Matt Busby’. In another couple of years…….MU Glazerdome, anyone?
Just like all supporters trusts, SU has always had as its primary objective the acquisition of an ownership stake in our club. Glazer’s takeover does not change that – in fact the scenario unfolding at United and in football generally makes it even more likely. And SU is now in a far stronger position than it was even one year ago. Our campaign against the Glazer bid was universally acknowledged as powerful – we will now channel our efforts into a positive campaign to prepare for the day when Glazer’s plan collapses under the weight of its own unrealistic and over-reaching assumptions. It is the supporters – the true custodians of the club – who will be there to pick up the pieces.
That is why we are setting up the Phoenix Fund. Most of our energies will be directed to raising money for this Fund from a variety of sources. The Phoenix Fund is aimed at all United fans and anyone with the future health and survival of Manchester United at heart. We owe it to the heritage of our great Club, as well as to future generations of supporters, to unite around this common goal and move forward together.