Irish tycoons to score €100m in United sale

RACING tycoons John Magnier and JP McManus are in line for a €100 million payday from the sale of their shares in Manchester United after the club yesterday confirmed it had received a takeover bid.

The ‘Coolmore mafia’ are the club’s largest shareholders with a 29% stake, built up at the cost of around €200m. Based on United’s closing share price yesterday, their holding was valued at €300m, meaning a profit of €100m if the takeover goes ahead.

Although United would not disclose the name of the bidder, it is understood to be Malcolm Glazer, owner of the American football team Tampa Bay Buccaneers and the club’s second-largest shareholder. He has appointed financial advisers JP Morgan to hammer out details of an offer.

A United spokesperson said yesterday: “This approach contains a number of significant conditions. The company is seeking clarification of this proposal and at this stage it is unclear whether any offer will be made.”

Mr Glazer is believed to be worth €650m and is best known as the owner of the Tampa Bay Buccaneers American football team, but to buy United he will have to pay around €1 billion if not more.

Analysts believe he will have to borrow heavily against the club’s assets to fund the takeover.

“He will be paying a pretty decent price for it and it won’t be out of love for the club that he will be making the acquisition,” said one London stockbroker.

Fans also fear Mr Glazer wants the club for profits not prizes. A spokesperson for the independent Manchester United Supporters Association said fans do not want him to get his hands on the club.

“He does not have the money to buy the club and would have to borrow heavily. The fans do not want the club to go into debt. It is a very risky business,” said association chairman Jules Spencer.

“We want to make it clear that he is not welcome or wanted as owner of Manchester United.”

Magnier and McManus have steadily upped their stake in United since 2001 and shares reached a four-year high in February on rumours they wanted sole ownership.

However, it is believed they would be willing to sell at the right price.

Earlier this year, Magnier had a public fallout with manager Alex Ferguson over the ownership of racehorse Rock of Gibraltar. The matter was settled but their relationship has been damaged.

Financier Dermot Desmond, who owns 3% of the shares, will net around 30m from a takeover.