Red Knights climb aboard Japanese Mule
So the Red Knight cavalry is gaining speed and momentum and is ready to make it’s stand outside Old Trafford versus the Glazer regime as the season draws to a close…
The latest news is that the Red Knights have enlisted Nomura, a Japanese investment bank, who advised Manchester United back in 2005 during the Glazer bid process.
It seems odd now then, that the same firm is now supporting the Red Knights in this tussle for the world’s 3rd largest club, in revenue terms. One does have to ask what the priorities or motives are of banks that can equally support and advise on such a topic.
Regardless of moral stance – surely it was supporting the Glazer bid back in 2005 and telling Manchester United plc such – now, obviously satisfied with the advice given five years ago, fully aware of the impending debt the club was about to be plunged into – the bank now sees it appropriate to support a takeover bid by the Red Knights – at the expense of it’s previous suitors? It’s hard to decipher what these firms truly think. Do banks like this just agree with the highest bidder?
Obviously, few protesters will care if the Red Knight crusade is successful – if club ownership does changes hands i doubt in years’ time few will be singing “Bring back the Glazers” complete with a ginger scarf campaign.
Naturally, and rightly, the huge concern is the debt saddled with the club. Technically, the club is profitable from a running costs/revenue perspective, but the estimated £700m debt accrued by the Glazers in the takeover process will cripple the club and compromise the potential about of further investment in the club overall.
Unfortunately, the nature of football is short-termism in the extreme – this is where many a business model can, and will, come unstuck now and in the future – it’s a resulted based industry, where 3 points this week is better than 3 points next week and profitability is required immediately. It appears that businessmen cannot afford to take such a long term view on running a football club in such a way.
Filed under: Football | Leave a Comment
No Responses Yet to “Red Knights climb aboard Japanese Mule”