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All The News

Gill - supports Man United's owners.

GILL: GLAZERS` MODEL BENEFITS UNITED

Posted 12/03/10 08:20
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Manchester United chief executive David Gill insists the Old Trafford outfit are benefiting from the Glazer family's business expertise.

Whilst the highly visible green and gold campaign, which David Beckham offered support to by wearing one of their scarves as he made his way off the pitch on Wednesday night, will again be in evidence as United entertain Fulham on Sunday, Gill believes the Glazers' positive contribution to the club is being ignored.

United announced a seven-figure sponsorship deal with Telekom Malaysia on Thursday, providing further proof the Red Devils remain an attractive proposition.

The five-year deal is part of a new commercial strategy implemented by the Glazer family.

Instead of taking a global approach, United adopt a territorial stance, doing exclusive deals in specific areas to maximise income and make the most of an estimated 333million supporters worldwide.

It was one of the facts the Glazers took into account when they launched their own takeover.

"The owners thought we were doing very well on the commercial front but that there were other opportunities out there," Gill said.

"This is the insight they have brought in.

"It doesn't get much media coverage but the very fact they have come in and are able to do these deals benefits us.

"We can reinvest that money back into the team."

Gill's comments reinforce the view inside Old Trafford that the only reason the vast majority of the £80million received from Real Madrid for Cristiano Ronaldo remains unspent is due to Sir Alex Ferguson's reluctance to enter what he feels is an inflated transfer market.

The Manchester United Supporters Trust argue differently, of course, as they stand solidly behind the Red Knights, whose attempt to wrest control of the club on behalf of the fans is now being assisted by leading global investment bank Nomura.

Sources close to the Glazer family have continued to insist the club is not for sale, and they have no intention of off-loading despite debts in excess of £700million.

It was a message reinforced by Gill as he was announcing Telekom Malaysia is to become the 'Integrated Telecommunications Partner' of the Old Trafford outfit.

"There are protests," said Gill.

"Everyone has the right to protest and there was certainly a lot of green and gold there on Wednesday, you cannot deny that.

"But this partnership demonstrates the strength of the club. It is a long-term partnership for five years.

"We will be around for the length of this five-year deal and many more in addition to that.

"We have a sound business model and Telekom Malaysia is partnering one of the best teams in world football. That will always be the case."


Your Comments

paul_scholes_go

"were in contention for our 4th league win on the trot which no one has ever done (bearing in mind our horrendous injury list i.e rio, vidic etc) and now in the quarter final of the european cup and league cup winners, not too bad under the glazers. we are still the biggest club in the world and i dread the thought of the red nights taking over as they will all want a say in the running of the club and all will want a return in their investments.whoever buys us if the glazers do sell up will want profits on their business investments."

RTS1999

"wyldstalyns are you for real? Anti Americanism and Anti Semitism ? Its nothing of the sort, its a direct objection to huge level of debt and the fact that they are using the fans and the club to line their own pockets. Nothing more. Secondly, do please tell how you know the Red Knights are bad for the club? Seriously please do. As for a boycott, its the only thing the Glazers know...money..you have to hit them where it hurts...the matchgoing fans are the ones the club most relies upon (over 50% of Utds income), they are also the ones being hardest hit financially. Are you a match going fan or Season ticket holder? It strikes me that those against the idea of a boycott are the type of fans who cant be bothered to actually go to the match and think only of the success in the short term so they can have 'banter' with mates in work and gloat about trophies - its selfish beyond belief. So it hurts the club, it cant be worse that what the Glazers have done and it might speed up getting rid of them, so you go a few years without trophies, so what, the likes of you will have gone to City or Arsenal by then anyway."

wyldstalyns

"EoinMUFC - yeah sorry that was really directed at spence, since i'm sick of people shutting out alternate view points on the basis of whether someone's a "real" fan or not or from Stockport or any other senseless drivel (which includes that vast levels of anti-Americanism, and to a lesser extent anti-semitism which underpins a lot of the protests). You weren't one of them, so apologies.

Nevertheless, this additional cash wouldn't be there (for the most part) without the Glazers' initiatives. We'd be at a similar level to before, which then, as now, is pretty decent, albeit not Madrid levels (but we all know their model is hardly an option).

And like I said, we're not losing money those figures are misleading.

By all means I'd like the Glazers out, but there are 2 things that are 100% for sure worse: 1) a boycott, which would screw the club, and 2) the Red Knights.

When there's a decent option, and the Glazers think the club's reached the apex of it's value, they'll sell. Until then, we should stick with what's safe, and allow them to increase the club's value how they see fit, which will by definition include on the pitch success."

bazualdo

"I back EoinMUFC's comments, wyld stallions is defo a spindoctor. How can any fan sit comfortably knowing that irts club has a debt that large!!"

RTS1999

"wyldstalyns 'since it basically makes the debt "imaginary", excluding the interest repayments.' Thats Ok then, I must have imagined the 716Million official debt figure that has been secured against teh club, in comparison to 0 debt figure before they took over. So the Glazers have increased club profits? By increasing ticket prices by over 50%, by introducing the ACS and forcing fans to buy tickets, by success on the pitch and bigger TV reveues and sponsorship...great..but where are these profits going? To the club? No, to pay off debts and loans they have taken out to buy the club, a club they couldnt afford. So under the old PLC sysyem, we made lots of profit, had no debts, spent large sums on players and kept ticket prices low. Howver the Glazers have been good because now we have increased profits to pay debts, spent less on players, made numerous redundancies within the club, but thats acceptable?? What colour is the sky in your world...how can anyone, anywhere ever justify that the Glazers have been good for the club? It really does beggar belief! I can only assume you are not a match going fan."

RTS1999

"Rayne Wooney...those Red Knights just happen to be lifelong Utd fans that are also successful in business. That they are in a position to help, but also have an affinity for the club which surely means they could be better owners than the Glazers - people who, have no love for the club, no history with the club, rarely attend matches and are content to strip money out of it for their own benefit. Investors do just that ..they invest, at present the Glazers have not invested a single penny into Utd, they have however taken out more than 300M of the clubs money. Why dont give the Red Knights the opportunity to see what model they propose? On what basis will we be in League 2 in 5 years? Do you not think that as in the past under PLC ownership, they will employ a management board to run the club and pretty much leave it as it is? Afterall, without the Glazer debt we did OK under that structure didnt we? "

EoinMUFC

"wyldstalyns I don't really understand why you referred to me as an idiot? I didn't think the facts I stated were in any way idiotic... you seem to work in / have knowledge of finance, I work in finance also...

You're absolutely right, there is no reason why we cant continue to work with the debt we have, and yes they have increased the turnover (mainly by hiking up the season tickets to a discraceful level)... however does it not sicken you that all of this increased turnover is being used to service a completly unnecessary debt??? if we had no debt to service last year all of that cash would have been reinvested in the team, we would have been able to compete with Real in the transfer market... the way things stand currently we may never be able to compete at that level again...

Just ask yourselves who are we going to sell this year to make up this seasons inevitable loss?? who next year?? this is unsustainable and needs to stop before it's too late!

It wouldnt surprise me if you are a Glazer spin doctor to be honest..."

wyldstalyns

"Muforever stretches the point to say that the Glazers have been "brilliant" for the club (naturally nobody wants the debt or the interest repayments), however in what they've bought to the club besides this, then it's true they've probably been pretty much the best owners ever seen in football, for reasons that Gill describes and others.

What absolute idiots like spence, or EoinMUFC don't understand is... well... finance. And you can't blame them I guess, since there's no reason to expect them to be accredited accountants or anything, but there are DIFFERENT TYPES OF DEBT than the one they've no doubt run up buying their (admittedly Glazer inflated) season tickets on their welfare checks (ok, this is unfair speculation, but hear me out).

2 simple points. 1) The amount the Glazers have increased the club's profits more than covers the interest repayments, and their own loans too (that's the ?22m or so they take out - it's not pocket money, it's what they had to pay to buy the club in addition), leaving behind all the cash we'd have had if they'd never come, and a bit more besides, so it's absolutely true when they say there's money to spend. 2) To put it in the most basic terms possible, the club isn't in debt - it earns more money than it spends, and is actually in the black by about ?140m (this is the beauty about the debt being within the value of the club - that's a good thing, not a bad thing, since it basically makes the debt "imaginary", excluding the interest repayments). The issue mentioned by EionMUFC of the ?50m loss was misleading reporting, since it takes into account -80m of something called "depreciation and amortization", which is too complicated to explain, but basically it's to do with the way figures are reported, and isn't actually an expense at all, and wasn't money going out. The club wouldn't have made a loss.

DON'T BOYCOTT."

RayneWooney

"f*ck the Red Knights... I don't like the Glazers but the idea of letting a whole armada of greedy city w@nkers take charge of our football club is a bad one... We'll be in league two within five years if that rabble take control!

No thanks... better the devil I know."

Mutid

"Granted - so far so good, Mr Gill, please encourage your bosses to keep it up. Since we've been shooting for the Champs League, Real, Barca, AC Milan, Juventus and Chelsea have been our big rivals - on the pitch, and off it in the transfer market and as a global phenomenon. The Italians have fallen by the wayside, but the Spaniards just keep upping the ante and to manage and finance our sustained challenge is a tough task that probably could've been better achieved - Barca could probably give everyone a few lessons in that respect - than the current system under the Glazers, but wasn't, so onwards and hopefully upwards. It will be interesting to see the repercussions of Real's exit, whether their system of finance is solid and how their new "Galaticos" react. These are starting to feel like crazy times in football, the money is just staggering and bound to go to more than a few people's heads and also mean mistakes will be that much larger. I think the whole system is unsustainable and will collapse in the next few seasons, which will probably usher in a new "closed shop" European or World Super League to monopolise the advertising and marketing rights and protect incomes. The one thing every fan does not want to see is United going down the pan - DO NOT LET THIS HAPPPEN."

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