RC Business

A consortium of investors calling themselves the “Red Knights” is attempting to buy Manchester United. Bought six years ago by American owners,the Glazer family have not won the hearts of the fans. Now a consortium of wealthy United supporters are attemting to buy the club. The Glazers have a reputation of being hardened businesspeople and will only sell if it makes economic sense to them.

The “Red Knights” value the club at £1.25 bn, including its £500m debt. This means the Glazers would receive £750m, having put in £272m in 2005.

“The Red Knights” hope to raise £250m from supporters, £500m from a group of wealthy investors and retain the £500m bond debt raised in January.

UEFA favours clubs being owned and run by their supporters. Barcelona, Real Madrid and several German clubs being held up as examples.

The finances of the Premiership clubs are very poor, with 18 of the 20 clubs having a combined debt that is more than the rest of Europe’s top divisions put together.

What chance the “Red Devils” being owned by the “Red Knights”?

Business