Interesting report from 'The Herald Sport"
Desmond preparing for transfer power
IAIN WILSON
CELTIC'S majority shareholder, Dermot Desmond, is finally set to jettison his Parkhead stake in favour of Manchester United, it was claimed yesterday.
He is said to be the mastermind behind plans to take the world's largest football club out of the stock market and into the hands of supporters.
The reports refuel speculation that the future for Martin O'Neill, the Celtic manager, also lies south of the border at Old Trafford.
Desmond, the multi-millionaire financier, is said to have proposed turning United into a mutual trust aimed at guaranteeing it will never be owned by anyone other than its supporters.
It is an idea which will attract widespread grass root support among United fans, especially in the wake of BSkyB's hostile bid four years ago which was blocked by the Monopolies Commission.
However, the plan - now doing the rounds in the City - has its critics within financial circles, who suspect it is all about profits and absolute power rather than handing control to supporters.
Many analysts believe United is undervalued in the current volatile market, with current worth of around £265m perhaps at least £100m below its long-term real value given massive sponsorship deals, worldwide fan base, and ongoing success on the field.
If approved, Desmond, would certainly become a director. It would also, at long last, allow him to join his close Irish friends and business associates JP McManus and John Magnier, already in situ at Old Trafford.
McManus, racehorse owner and legendary gambler, and Magnier, who owns the renowned Coolmore stud farm in Tipperary, currently have 8.6% of Manchester United by way of Cubic Expression Company, their investment vehicle.
Both are reputed to be trying to increase that holding to 10%, which would make their company the biggest single shareholder.
Desmond, who controls almost 29% of Celtic's shares, cannot join in that action at United because UEFA rules prevent any one person or company holding shares in two clubs in European competitions, including the Champions League.
However, he is said to have set the ball rolling for a Parkhead departure by proposing a mutual trust should own United.
Its fans already hold almost 20% of shares, and many would be supportive of a so-called "Irish bid". In addition, only Sven-Goran Eriksson, the England manager, has topped Martin O'Neill in supporters' polls over who should succeed Sir Alex Ferguson as club manager.
Desmond is also a close friend of Sir Alex, who is expected to be offered the chairmanship at Old Trafford at the end of the season - leaving O'Neill, another close friend, free to join United. His contract is due up in the summer.
Sir Alex's support for any takeover could prove crucial, having already been widely credited with helping to block BSkyB's bid in 1998.
Desmond is said to have asked Goldman Sachs, the investment bank, to produce reports on a proposal to buy United via a securitisation.
In effect, it would be a debt-funded bid - with the debt secured by the club's future revenues over the next 11 years.
During that period, the club is already guaranteed around £303m under a Nike sponsorship deal signed two years ago.
Gate receipts, merchandising, and television rights come on top of that, as does £30m in shirts' sponsorship over four years.
Under the proposal, the club would be placed in a mutual trust whose "independent" directors would be elected by fans and other shareholders.
Goldman Sachs, having produced its reports, is said no longer to be involved, with other bankers now seeking prospective backers for the bid.
Desmond, who could not be contacted yesterday, is also said to have taken a back seat, on grounds there could also be unfavourable reaction given the cynicism surrounding proposals.
Celtic refused to comment. However, of the latest speculation that Desmond is set to quit, club insiders noted that "not one week has passed in two years without reports he is about to sell his shares."
- Dec 23rd
Desmond preparing for transfer power
IAIN WILSON
CELTIC'S majority shareholder, Dermot Desmond, is finally set to jettison his Parkhead stake in favour of Manchester United, it was claimed yesterday.
He is said to be the mastermind behind plans to take the world's largest football club out of the stock market and into the hands of supporters.
The reports refuel speculation that the future for Martin O'Neill, the Celtic manager, also lies south of the border at Old Trafford.
Desmond, the multi-millionaire financier, is said to have proposed turning United into a mutual trust aimed at guaranteeing it will never be owned by anyone other than its supporters.
It is an idea which will attract widespread grass root support among United fans, especially in the wake of BSkyB's hostile bid four years ago which was blocked by the Monopolies Commission.
However, the plan - now doing the rounds in the City - has its critics within financial circles, who suspect it is all about profits and absolute power rather than handing control to supporters.
Many analysts believe United is undervalued in the current volatile market, with current worth of around £265m perhaps at least £100m below its long-term real value given massive sponsorship deals, worldwide fan base, and ongoing success on the field.
If approved, Desmond, would certainly become a director. It would also, at long last, allow him to join his close Irish friends and business associates JP McManus and John Magnier, already in situ at Old Trafford.
McManus, racehorse owner and legendary gambler, and Magnier, who owns the renowned Coolmore stud farm in Tipperary, currently have 8.6% of Manchester United by way of Cubic Expression Company, their investment vehicle.
Both are reputed to be trying to increase that holding to 10%, which would make their company the biggest single shareholder.
Desmond, who controls almost 29% of Celtic's shares, cannot join in that action at United because UEFA rules prevent any one person or company holding shares in two clubs in European competitions, including the Champions League.
However, he is said to have set the ball rolling for a Parkhead departure by proposing a mutual trust should own United.
Its fans already hold almost 20% of shares, and many would be supportive of a so-called "Irish bid". In addition, only Sven-Goran Eriksson, the England manager, has topped Martin O'Neill in supporters' polls over who should succeed Sir Alex Ferguson as club manager.
Desmond is also a close friend of Sir Alex, who is expected to be offered the chairmanship at Old Trafford at the end of the season - leaving O'Neill, another close friend, free to join United. His contract is due up in the summer.
Sir Alex's support for any takeover could prove crucial, having already been widely credited with helping to block BSkyB's bid in 1998.
Desmond is said to have asked Goldman Sachs, the investment bank, to produce reports on a proposal to buy United via a securitisation.
In effect, it would be a debt-funded bid - with the debt secured by the club's future revenues over the next 11 years.
During that period, the club is already guaranteed around £303m under a Nike sponsorship deal signed two years ago.
Gate receipts, merchandising, and television rights come on top of that, as does £30m in shirts' sponsorship over four years.
Under the proposal, the club would be placed in a mutual trust whose "independent" directors would be elected by fans and other shareholders.
Goldman Sachs, having produced its reports, is said no longer to be involved, with other bankers now seeking prospective backers for the bid.
Desmond, who could not be contacted yesterday, is also said to have taken a back seat, on grounds there could also be unfavourable reaction given the cynicism surrounding proposals.
Celtic refused to comment. However, of the latest speculation that Desmond is set to quit, club insiders noted that "not one week has passed in two years without reports he is about to sell his shares."
- Dec 23rd