|The takeover bid by Malcolm Glazer for Manchester United, has created strong reactions amongst both the club’s fans and the UK press as both parties contemplate the benefits and drawbacks of such a change. One of the points puzzling many is why the American entrepreneur is so interested in purchasing the club, which is already thriving, but would involve a huge investment from the potential buyer.|
Should Glazer’s bid prove successful, the purchasing fee looks set to be around the £800 million mark. With an annual profit of £27.91 million last year, a drop from the previous year’s figure of £39.5 million, the club is outperforming other clubs, but the return seems initially very weak in face of such a huge outlay. However Glazer, and many analysts are excited by the potential for future earnings held in the club. Sources close to Glazer have revealed that whilst interested in the sport and the fortunes of the team, naturally Glazer is also highly interested in the future potential earnings the club could offer him.
The areas which could hold lucrative returns for an investor include the increase of ticket prices; potentially huge naming deals that could be struck for a company to rename Old Trafford bearing their brand name; and lastly in gambling. Currently Man United have an agreement with Ladbrokes as their official partner for gaming, but Glazer and associates believe there is a huge untapped potential lying in future gambling opportunities. The already global appeal of the club and importantly their website could launch the site as online gambling site in its own right. Coupled with advancing broadband technology which could increase the web coverage of games, it is in fact the site and the huge amount of interest that it generates across the world which could hold huge returns for Glazer. Analysts have suggested that the resulting annual revenue could reach £100 million just through developing the website to accommodate betting and host internet based live streaming of matches.