Really good article from The Times on the Glazers:
http://www.thetimes.co.uk/tto/sport/football/premierleague/article4179240.ece
Here's the text:
How much repair work did Manchester United need? £200m of it
David Moyes was not the reason Manchester United flopped so badly last season. Louis van Gaal is not the panacea to Old Trafford’s problems. The storm hitting the Stretford End has been brewing for nine years since the Glazer family took over the club in a leveraged buyout. In the run-up to the new season, there were copious amounts of unrealistic positivity about United.
They were widely tipped to regain a top-four place and some pundits imagined a Van Gaal-led title challenge. It is wishful thinking. Predictions are dangerous. Two and a half years ago this column opined that United’s squad was substandard and needed “freshening up to the tune of about £100 million”. Three months later, Sir Alex Ferguson’s side were Barclays Premier League champions and Times Sport’s mailbag bulged with correspondence from United fans that ranged from mild gloating to accusations of professional incompetence and bias. It became clear in time that the opinion in the original column was significantly off-beam. In that respect, the letter-writers were correct. The figure of £100 million massively underestimated the weakness of Old Trafford’s playing staff and the gap that would be left by Ferguson’s retirement. To give any successor to the Scot a chance to compete for trophies would have required an investment in players of double the initial estimate.
That £200 million is about the amount that Andy Green, a brilliant football financial analyst and relentless exposer of “Glazernomics”, suggests the American owners have received from selling shares in United over the few past months. It is an excellent return for a family that has never invested a penny in the club. The Glazers must snigger at the stupidity of English football. They own the Tampa Bay Buccaneers American football team. When they bought Tampa Bay in 1995, National Football League rules insisted that they could fund only 15 per cent of that buyout by borrowing. The majority of the money had to come from their own pockets. By contrast, United were purchased completely by debt, which was then leveraged against the club. Green calculates the cost of debt to United in the nine years since the takeover to be in the region of £700 million. That is aside from the cash the Glazers have made from shares. Ferguson’s rare genius meant that he was able to maintain United’s place at the top table despite such mind-boggling amounts of revenue being drained away from team-building.
The 72-year-old was never critical of the Glazers, but perhaps he should have been. Between the transfer of Cristiano Ronaldo to Real Madrid for £80 million five years ago and the Scot’s retirement last summer, Ferguson bought only one player for more than £20 million, Robin van Persie. He added a handful of others in the £15 million to £18 million range but, with the exception of David De Gea, they were as ordinary as their price tags suggest. At this time, United were generating revenues that should have allowed them to compete with Real Madrid. The Glazers siphoned off cash and Ferguson carried on as if nothing was wrong. That apparent complicity casts a shadow over the Scot’s legacy. Van Gaal has inherited a similar substandard squad to Moyes and the same transfer negotiator who failed last summer. Ed Woodward could not bring Ferguson’s successor the sort of reinforcements the new manager needed.
That was when United had Champions League football to dangle in front of potential recruits. Woodward’s efforts this summer have been almost as underwhelming. Only Ander Herrera and Luke Shaw have joined. Both should develop into significant contributors for Van Gaal, but the Dutchman might have expected another three or four battle-hardened newcomers to bolster his squad. Woodward managed to escape the Moyes meltdown without too much personal damage, despite being a significant contributor to last season’s chaos. It is hard to imagine a man who failed to get his targets from a position of strength achieving a better result in a less attractive environment. There are no easy answers for United. The present troubles are merely symptoms. Their causes go back to the Glazers. The owners have taken the money and someone has to pay the price. Moyes already has and Van Gaal will have his work cut out not to be the next victim.
EDIT: A comment from an Arsenal fan who is familiar with the situation (found on Reddit):
Hi, I'm an Arsenal fan. I almost never comment in other subs but I wanted to see if this had been posted in here and couldn't really resist.
I was involved with some of the PIK loans that were made to United by Perry partners, Citadel and a few other hedge funds. I really don't want to give away the group that I work with so I'm very hesitant to say too much.
What I will say on the matter is that every single United fan should be incredibly concerned about the Glazers. To an extent it's acceptable to profit and make money out of football clubs and people will have various tolerances to what they consider acceptable in this regard.
That being said the Glazers have very little 'regard' for the club in my opinion. in fact their 'regard' for the club extends to pretty much keeping the fans spending money whilst milking as much money out of the club as possible.
Make no mistake those PIK loans were savage and whilst I don't know exactly how much that debt ended up costing United but figures of around £850m are probably not far off the mark. If possibly a little low.
The common retort when this is brought up is that they have grown the club commercially. And they have. When you look at it in isolation. However when you look at United's growth against the rest of the league it is good but it is not quite as spectacular as is made out.
I'd be keeping an eye on share sales by the Glazers going forward. I don't think they are ready to exit fully but the performance of the club will be concerning them and they may view this as somewhat of a top.
Anyway it's your sub and this is just my opinion so I'll leave you to it.
Edit. Added some links.
You can read more here:
http://www.telegraph.co.uk/finance/...-club-says-hedge-fund-star-Paul-Marshall.html[1]
Also
here[2] I would draw your attention particularly to Goldman's CIO Jim O'Neill ""Manchester United is a global brand and it is owned by people who are not particularly interested in what it does on the football pitch, they are more interested in revenue.". I know Jim reasonably well. He is about as dyed in the wool United fan as I have ever met. To the point that he got his Bloomberg colours inverted from Blue into Red because he didn't want to look at 'City colours'.
There's a lot more you can read into it but trust me when I say that if you have these two speaking out about the Glazers (and there are far more) and they understand finance better than 99.9% of the population then you should be worried.