Manchester United warn investors over ability to 'attract and retain talent' if Louis van Gaal fails to take them back to Champions League
The Glazers are planning to sell five per cent of the club
Thursday 31 July 2014
Manchester United's owners have warned potential investors that the club may fail to attract or retain top players and coaches if it fails to qualify for the Champions League again this coming season.
The Glazer family who own 90 per cent of the club have announced plans to sell another five per cent, eight million shares, which would see them earn around 150million US dollars (£89million).
All the proceeds will go to the Glazers' investment vehicle Red Football LLC and not to Manchester United - something that will fuel anger from fans' groups who have often claimed the Glazers are taking money out of the club.
Read more: Louis van Gaal interview
Fellaini and Kagawa could head United exodus
All you need to know about Vidal
It its prospectus, United has warned of the implications of missing out on the Champions League again and revealed that income from its new 10-year kit deal with adidas will drop 30 per cent from £75million to £52.5million per year if it fails to qualify in two consecutive seasons.
United sacked David Moyes as manager after failing to make it into the elite European club competition last season, and the cost of his successor Louis van Gaal failing to do so again has been made clear to investors.
The prospectus says: "Because of the prestige associated with participating in the European competitions, particularly the Champions League, failure to qualify for any European competition, particularly for consecutive seasons, would negatively affect our ability to attract and retain talented players and coaching staff, as well as supporters, sponsors and other commercial partners.
"Failure to participate in the Champions League for two or more consecutive seasons would also reduce annual payments under the recently announced agreement with adidas by 30 per cent of the applicable payment for the year in which the second or other consecutive season of non-participation falls."
United's combined broadcasting and matchday revenue from Europe was £38.9million, £42.3million and £59.7million for 2013, 2012 and 2011, respectively.
Manchester United's shares, which rose sharply after the announcement of the adidas deal earlier in July, closed at 19.31 US dollars in New York on Wednesday.
Latest in Sport
Gabriel Paulista: Talented Brazilian could grow into world-class defender at Arsenal
Australian Open 2015: Serena Williams vs Madison Keys match preview
Tottenham player ratings: Christian Eriksen? Harry Kane? Who was the star man at Bramall Lane?
Andy Murray vs Tomas Berydch: Murray cool over reunion with coach Dani Vallverdu at the Australian Open
Floyd Mayweather vs Manny Pacquiao: Pair meet at NBA game and exchange numbers, will the fight be announced during Super Bowl?
- 3 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 4 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures