Bloodstock and horse-racing millionaires Mr John Magnier and Mr J.P. McManus could be set for a profit of about €70 million on their holding in Manchester United if a potential bid for the company which owns the football club succeeds writes Barry O'Halloran.
Manchester United plc announced yesterday that a potential bidder had approached the company. It did not name the individual involved, but it was widely believed to be US millionaire Mr Malcolm Glazer, who already owns 19.17 per cent of the company.
The club said the approach contained a number of significant conditions and stressed that it was not clear if an offer to buy the company would be made.
Mr Glazer is said to be preparing a bid of about £700 million (€1 billion) for the club. That would value the two Irishmen's holding at more than €280 million. Between 2001 and late last year, their company, Cubic Expression, spent between €210 million and €217 million on building up their holding.
A spokeswoman for the company would not comment yesterday. It is understood that nobody has approached Cubic Expression or its representatives to discuss the sale of its stake.
Mr Glazer is originally from New York, but now lives in a €20 million mansion in Palm Beach, Florida. He owns American football team the Tampa Bay Buccaneers and has been buying Manchester United shares since February 2003.
He has a fortune worth an estimated €900 million. Most of it is tied up in his businesses, including the Buccaneers and a range of property interests.
If he is going to bid for the club, he will have to borrow the money needed. Reports yesterday said he had raised the money, which has been secured on future Manchester United ticket sales.
However, financing a bid for the club could be the least of his problems. Mr Glazer will also have to win the support of Manchester United's army of fans. About 35,000 of them, many of them Irish, own shares in the company.
Supporters' groups say that fans own 20 per cent of Manchester United. This is enough to block a possible bid, as it would need the support of shareholders with 90 per cent of the company to succeed.
Four years ago the fans derailed a bid by Sky Television's parent, BSkyB, which is headed by Australian media baron Mr Rupert Murdoch.
Since Mr Glazer began buying shares last year, Manchester United supporters have made it clear that they do not want the club's ownership to rest solely in his hands. Comments from fans on the club's website made it clear yesterday that they still feel that way.