Can Manchester United Be Forced to Sell to Non-Glazers Investors?

Manchester United, a storied sports franchise, has been under the control of the Glazer Family since 2005. However, questions have been raised about the legal ways to force a sale of the club to other investors. This article explores the potential methods and the legal implications of such actions.

Current Shareholder Structure and Challenges

The Glazer Family holds the majority of shares in Manchester United through their control of Class B shares, each of which has 10 votes. This concentration of voting power poses a significant hurdle for any external investors seeking to gain control of the club.

To challenge their control, Class A shareholders would need to come together and create a majority. However, the share agreement clause stipulates that Class B shares revert to Class A shares, granting a 10:1 voting ratio in favor of the Glazers. This makes it extremely difficult for other shareholders to outvote the Glazers.

Alternative Strategies to Force a Change

Despite the current structure, there are still several strategies that could potentially force a change in the direction of Manchester United. Here are three possible avenues:

1. Consolidation of Class A Shares

Sir Jim, who owns 25% of the Glazer's Class B shares, could pool his shares with other investors to collectively hold a majority of the Class A shares. If Sir Jim demands that his 25% purchase be Class B shares with 10 votes per share, it opens up the possibility for Class A shareholders to also demand equity control.

2. Seeking NYSE Intervention

Existing shareholders can file a complaint with the New York Stock Exchange (NYSE) regarding the rejection of Sheikh's proposal. The complaint should highlight that the current deal is not in the best interest of the club, does not add value, and is contrary to the interests of stakeholders.

The NYSE has specific rules and regulations for corporate governance. The complaint could be that the Glazers have acted in their own self-interest, which violates the NYSE's code of conduct. Any complaint to the NYSE can be filed by individuals, not just shareholders, making it a powerful tool for change.

3. Legal Action

In rare cases, shareholders can invoke legal action to challenge the board of directors. This would require proving that the board has acted in a manner that is against the club's best interests and is in breach of their fiduciary duties. Legal proceedings can be complex and time-consuming, but they provide a last resort for shareholders.

Encouragement and Call to Action

For Manchester United supporters who feel strongly about these issues, there is an opportunity to influence the situation. By lodging a complaint with the NYSE, you can contribute to a potential favorable outcome. It is a relatively straightforward process that takes only 10 minutes to complete, and the more people who participate, the greater the likelihood of success.

I encourage every Manchester United supporter to take this step. Your voices, combined, can make a significant difference in the direction of the club.

Further Reading

If you want to delve deeper into the issues surrounding Manchester United and the Glazer Family, I recommend reading RAPED Manchester United and the Glazers. This book provides a comprehensive insight into the Glazer Family's self-serving actions and their impact on the club.

By understanding the complexities and potential avenues for change, you can play an active role in the future of Manchester United.