PLC CHAIRMAN RESIGNS OVER GLAZER DEAL

Last updated : 29 May 2005 By Editor

From The Independent:

Malcolm Glazer has provided no assurances to Manchester United's board about future debt levels, ticket prices, transfer funds, non-interference in team selection or even Old Trafford's status as a club-owned property, according to United's chairman, Sir Roy Gardner, who yesterday announced his imminent resignation as a result of Glazer's takeover.

In a letter to shareholders who own the 24 per cent of United that Glazer does not already control, Gardner recommended that they accept Glazer's 300p-per-share offer. He confirmed that almost 2m shares owned by board members - 0.72 per cent of the club - will now be sold to Glazer, and said that he and his fellow non-executive directors, Ian Much and Jim O'Neill, are "expected to resign from the board shortly".

Gardner's letter leaves no doubt that he remains unconvinced about Glazer's plans. Fans will be con-cerned that Glazer has failed to provide assurances that he will not load the club with unsustainable debt.

Gardner's letter said: "During its discussions with [Glazer's investment vehicle] Red, the board sought a range of legally-binding protections for the football club, its fans and any minority shareholders, including in relation to future levels of net debt, new player investment and transfers, team selection, Old Trafford [and] ticket prices ... As at the date of this document, no such protections or assurances have been forthcoming."