http://blogs.news.sky.com/kleinman/Post:a85fd49d-60e4-42bc-a91a-936be4c28cb1
A group of leading City financiers who want to wrest control of the club from the Glazers met this morning for secret talks to galvanise support for their campaign, I have learned.
I understand that the Red Knights group – which involves the stockbroking supremo Keith Harris – convened this morning at the Fleet Street offices of the ‘Magic Circle’ law firm Freshfields Bruckhaus Deringer.
Among those present at the meeting was Jim O’Neill, the chief economist at Goldman Sachs, who has been an outspoken critic of the level of debt taken on by United’s parent company. O'Neill, who is one of the world's most respected economists and is a lifelong United supporter, will help to lead the group during the coming months.
Mark Rawlinson, a partner in Freshfields’ corporate practice who advised United on its takeover by the Glazers in 2005, hosted the talks, I’m told. Other City figures, including Paul Marshall, a partner at the hedge fund Marshall Wace, are supporting the Red Knights, although it’s unclear whether he was also at today’s meeting; and others from outside the world of high finance, such as Richard Hytner, a leading executicve at the global advertising agency Saatchi & Saatchi, are also involved.
I should caveat all this by saying that the Red Knights campaign is at a very early stage, and while it has the support of influential fan bodies such as the Manchester United Supporters’ Trust (MUST), it’s possible that those involved may conclude it’s not ultimately viable.
Having said that, the summit – the first formal gathering under the Red Knights banner – is the most significant evidence so far of the seriousness of the campaign to win back control of United.
I understand that a statement is likely to be issued in the next couple of weeks that would confirm the Red Knights’ existence and ask for financial and other support from United fans.
Estimates vary about how much hard cash will be required to persuade the Glazers to sell United, but a sensible number would seem to be in the region of £1bn. Even then, if the Glazers refuse to budge, then there’s no deal, no matter how much pressure the Red Knights exert.
Finsbury, the leading City public relations firm, has been lined up to advise the Red Knights, although no formal appointment has yet been made.
The significance of the involvement of senior personnel from Freshfields and Finsbury is that both firms advised United on the club’s sale in 2005.
The Glazers’ recent £500m bond issue (to refinance existing debt) has crystallized opposition among fans to their continued ownership of the club.
On the playing side, supporters have also been restless about the quality of football on display at Old Trafford following the £80m sale of Cristiano Ronaldo to Real Madrid last summer.
Despite winning the Carling Cup at Wembley yesterday, many fans believe the club’s indebtedness is hampering the ability of manager Sir Alex Ferguson to add strength to his playing squad.
Nobody involved in today’s meeting was available for comment this evening.
