Manchester United And Sky Claim A ‘Natural Synergy’
Following this morning’s announcement that the Manchester United Board has accepted BSkyB’s £623.4 million takeover bid (see Manchester Utd Board Accepts £625m Offer From Sky), Sky and Man Utd had to defend their decision to agree on the takeover in the face of protest from fans and shareholders. Opening the press conference as he clearly meant to go on, BSkyB’s chief executive, Mark Booth, described how the deal would create a “fantastic business for the 21st century.”
Booth also stressed that the venture represented an excellent partnership that would enhance both Manchester Utd and BSkyB. He described the takeover as “Good for football: good for Manchester United and good for Sky” at this morning’s meeting. When pushed on exactly how Sky’s involvement would contribute to the development of the club, he was reluctant to be specific.
Booth made three pledges to fans of the club: that Sky Sports will carry on showing the same number of Premier League games; that games will be selected for broadcast under exactly the same criteria as before (criteria which are governed by the Premier League); and that pay-per-view games will not replace those broadcast under the original contract.
The club’s chief executive, Martin Edwards, who stands to make just under £90 million, denied that he has betrayed fans by accepting the deal. He stressed that he has been a Manchester United fan since the 1950’s, and said, “the most exciting aspect of this deal is that it creates one of the most exciting partnerships in broadcasting and ensures Manchester United’s leading position in sport.” Edwards is to join the Board of BSkyB after the deal is complete.
Contrary to the optimism of the main players in the deal, there is strong opposition in the form of the Independent Manchester United Supporter’s Association. Its secretary, Gillian Howarth, commented: “With that sum of money I suppose that it was inevitable they would accept it, but it proves that they don’t listen to the backbone of the club – to the match-going supporters who don’t want the deal.”
A group called Shareholders United Against Murdoch has also been formed by the journalist Michael Crick. Fielding questions from journalists at this morning’s press conference however, Booth acknowledged that, “there are real emotions and real issues out there on the market”, and maintained that Sky’s passion and love of the game would assure it a growth in popularity. Edwards added that football club decisions would not be affected by the ownership, and that such rulings would remain within the club itself. It is feared that fan-based opposition may well manifest itself tonight at the Manchester United v Charlton Athletic game at Old Trafford.
It was unclear to some exactly what Sky intended to bring to the ‘superb’ club Manchester United by owning it. Booth rather evasively described the partnership as a ‘natural synergy’ between entertainment and sports. Although Enic (the investment company which already holds interests in Glasgow Rangers) is rumoured to be contemplating a counter-bid, Martin Edwards claimed this morning that Manchester United were not interested in and would not except any other offers, even if they were for a sum higher than that offer by Sky.
Shares in the club this lunchtime stood at 215.5p, and have dropped slightly since this morning.
The deal will be reviewed by the Office Of Fair Trading, which may or may not recommend that it is referred to the Monopolies and Mergers Commission.
BSkyB: 0171 705 3000 Manchester United Commercial Department: 0161 872 3488