Tuesday, July 24, 2007

The Malcolm Glazer takeover

On 13 May 2005, American businessman Malcolm Glazer acquired a controlling interest in the club through his investment vehicle Red Football Ltd. in a takeover valuing the club at approximately £800 million (approx. $1.5 billion). On 16 May, he increased his share to the 75% necessary to de-list the club from the Stock Exchange, making it private again, and announced his intention to do so within 20 days. On 8 June he appointed his sons to the Manchester United board as non-executive directors.
In July 2006, the club announced a refinancing package. Previously the debt taken on by the Glazers to financing the club was split between the club and the family, but now it will all be in the club. The total amount will be £660 million, on which interest payments will be £62 million a year. This is a 30% reduction in interest charges.