LONDON -- The takeover of the Manchester United soccer (ManU) club by American businessman Malcolm Glazer dominated the news in Britain for some days this month. By May 16, Glazer had managed to purchase more than 75 percent of the shares by paying £3 (£1 equals approximately 200 yen) per share, a considerable premium to the market price quoted before a takeover looked likely. The deal cost £790 million and has been financed largely by borrowing and the placement of PIK, or payment-in-kind, shares. The club will accordingly be saddled with considerable debt.
The takeover has aroused a furor among ManU supporters who fear that Glazer's sole aim is to make as much profit as he can from the club. He is not known to have ever visited the club or to have shown any real interest in soccer. Fans expect that he will raise ticket prices and do everything to extract further sums from the sale of merchandise, although products such as ManU shirts are already absurdly expensive. Their appeal to the young lies in their association with a famous player, but counterfeits can be bought for a fraction of the official price. Television rights are already very costly, and TV companies purchase them only if the clubs maintain their popularity.
Supporters are also concerned that Glazer will be reluctant to put up cash for the purchase of outstanding players from other clubs. This may be necessary if ManU is to retain its position as one of the leading clubs. A recent transfer is said to have cost £30 million. Perhaps too, they guess, he will try to pare down the club's huge payroll. Some top players are said to earn over £100,000 a week, which puts their earnings way above those of top industrialists and in the same category as pop stars.