Consortium confirms United interest

A consortium of businessmen has confirmed its intention to try and oust the American owners of Manchester United

A consortium of businessmen has confirmed its intention to try and oust the American owners of Manchester United. Angered by the huge amount of debt the Glazer family took on to complete their controversial takeover in 2005, the 'Red Knights' are intent on launching a takeover bid.

Described as a group of "high net worth individuals", the Red Knights include Jim O'Neill, chief economist at Goldman Sachs and a one-time friend of Alex Ferguson.

Although plans are at a very early stage and no contact has been made with the Glazers, who have always stressed they are not interested in a deal, a meeting in London yesterday between the key individuals involved in the project went through various scenarios and will now look at formulating a plan to raise in excess of £1 billion (€1.1bn).

"We can confirm that a group of high net worth individuals, who support Manchester United (known as the "Red Knights"), met in London yesterday," a statement released on behalf of the Red Knights read. "This group is supportive of current management but are looking at the feasibility of putting together a proposal to be put to the Glazer family regarding the ownership of Manchester United.

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"These discussions are in early stages and no contact has been made with the Glazer family."

Leading football deal-maker Keith Harris is also involved and has previously suggested some kind of boycott may be required to reduce United's current profits and wreck the Glazers' present business plan.

There is certainly a groundswell of opinion against the Glazers and the current "Green and Gold campaign" so in evidence at Wembley on Sunday has proved incredibly popular.

As a starting measure, the Red Knights are urging supporters to join the Manchester United Supporters Trust, which has been vehemently opposed to the Glazers from day one.

"For such a proposal to be viable it would require the involvement and support of Manchester United supporters worldwide," the statement continued. "The Red Knights have been liaising with the Manchester United Supporters Trust and their representatives attended yesterday's meeting.

"As a first step, the Red Knights want supporters to demonstrate their commitment by joining the free online membership of the Supporters Trust, www.joinmust.org.

"Any new ownership model would aim not only to put the club on a sound financial footing, but would also aim to put the supporters at the heart of everything the club does."

Duncan Drasdo, chief executive of supporter's trust Must, welcomed today's news.

He said: "I can confirm that we were present at the 'secret' meeting of the Red Knight Group yesterday and have been involved in discussions for some time.

"This development is hugely welcome as there is a genuine desire to see a change of ownership at Manchester United.

"Initially the Red Knight Group has effectively set a challenge to Manchester United supporters to demonstrate they wish to see an alternative ownership proposal developed.

"In the first instance supporters are being asked to do this simply by joining the free online membership of the Supporters Trust (Must) and swelling its ranks to an initial target of at least 100,000.

"It is also essential for a majority of two key groups, the Old Trafford season ticket holders and those with executive facilities, to show their appetite for participation by joining the Must online campaign."

The Red Knights explained

Who are the Red Knights plotting to take over at Old Trafford?

A mixture of City bankers, lawyers and lifelong United fans, including Goldman Sachs chief economist Jim O'Neill, Paul Marshall, a partner at the hedge fund Marshall Wace, Richard Hytner of advertising agency Saatchi and Saatchi and Mark Rawlinson, a partner in Freshfields' corporate practice who advised United on their takeover by Malcolm Glazer and his family in 2005.

What is their plan?

To raise £1 billion (€1.1 bn) to buy out the Glazers, who have plunged the club into debt to the tune of £716.5million (€790m).

How would they raise the cash?

One idea involves finding 40 individuals to put up £20 million (€22m) each, with the Red Knights borrowing around £200 million (€220m) to top up the offer, but the plan would be to keep debt to a minimum.

How would they run the club?

For the fans and not as a commercial venture is the plan. United would stay in private ownership and not be returned to the public markets where it was traded until the Glazers' buyout.

Who heads the group?

Seymour Pierce stockbroker Keith Harris is the man brokering the potential takeover. He is a former HSBC investment bank chief executive and well known in football circles due to his involvement in takeovers of West Ham, Manchester City and Aston Villa. He is also the financier who warned last year that football's gravy train was set for a crash.

Do they have support?

The Red Knights have spoken with the Manchester United Supporters' Trust (MUST), who have indicated they will back any bid. Not surprising considering the blaze of green and gold inside Old Trafford as fans protest against the Glazers in the colours of Newton Heath, the club which predated United.

What chance has the plot of succeeding?

Not good. Exploratory discussions are thought to have begun at the offices of law firm Freshfields Bruckhaus Deringer on Monday to study the viability, rather than details, of any bid. The problem is that the Glazers maintain they have no intention of selling and the Red Knights have no way of ousting them other than to make a bid they cannot refuse.

Do the Glazers have any support?

Not among fans but their decision to alleviate high interest repayments on the £716.5 million (€790m) debt with a £500 million (€550 m) bond issue last month was successful. The issue was twice oversubscribed.

Is Harris confident?

Cautiously optimistic at best. He said: "There is a serious intent on the part of those people (Red Knights) who have not just support in their hearts but the ability to muster support from their pockets to get after this and the time feels right."