Saturday, 27 February 2010

David Gill replies to my letter

So, somewhat to my surprise, I received a reply from David Gill to my open letter in the post this morning.  I have to thank David for replying, which he did very promptly after I had sent an email on Monday night giving him my full name and address (having concluded that I would not receive I reply writing under a pseudonym).

Here is the reply:

The letter seems to suggest that:
  1. Publishing my questions (and his reply) in public means he is not prepared to answer them (would he answer them privately?); and
  2. That all important issues relating to United’s finances and the Glazers were covered in David’s interview on BBC 5Live on 31st January. 
I wrote an open letter because I believe there are fundamental financial problems with the Glazers’ ownership of United that need to be aired in public.  The supporters have not had any adequate justification from David Gill or the family itself for the pillaging of their football club which is described so clearly in the bond prospectus.  The club will not engage with any of the democratically elected supporters groups, despite the government expressly asking clubs to do so.  I believe David Gill has a responsibility to communicate with the supporters on major issues concerning the club.  A club is nothing without the supporters, they deserve to know the truth.

Turning to the content of the 5Live interview, I can only reiterate what I said at the time.  None of the major financial issues were raised in the interview by Garry Richardson.  Areas not covered included: 
  • The scale of the cash costs of interest, financing fees, derivative losses, “management fees” and loans to the family since 2005.  The fact that none of these costs would have been incurred if the Glazers had not taken over the club.
  • The huge increase in ticket prices imposed to pay these costs with no other benefit to the club.
  • The inconsistency in David describing the PIKS as “not the club’s responsibility” when the bond prospectus clearly outlines the intention to use the club’s cash balance and profits to repay them.
  • The Glazer family’s inability / unwillingness to pay down the PIKS in the last four years and the questions this raises about their financial position.
  • The justification for replacing bank debt with more expensive bond debt, other than to permit the payment of dividends to the Glazers.       

I'll say it again, NONE of the key financial issues were covered in the 5Live interview.

At a time of enormous concern among United supporters about the financial position of the club under the Glazers, demonstrated in spectacular style by the huge number of fans wearing green and gold at every game, the Chief Executive of Manchester United does not want any detailed public discussion of the issues.  Supporters will have to draw their own conclusion from his unwillingness to enter into such a discussion.


ManUtdPeople said...

Until we start seeing problems on the pitch leave the finances alone it's nothing to do with the supporters just support the team and shut up.

andersred said...

Hi there,

Thanks for your comment. Why bother coming on here and telling me that? How do you know I don't support the team? I don't write this stuff whilst at the match you know.

As I say, thanks for the advice.

Quick question, why does your name link to a United forum that had the "Die Die Glazer" lyrics at the bottom of the homepage if that's your view?


OliW said...

Andresred, you are better off just ignoring ridiculous comments such as manutdpeople's. What an idiot- it is the equivalent of saying don't exercise until you get heart disease or don't pay off your mortgage payments until the bayliffs turn up. He wants us to be in the position of Pompey or Leeds BEFORE we take issue with the situation- great attitude to have! Knobend! (and before he replies accusing me of not supporting the team I am en route back from Wembley now)

Jules said...

Sadly Andersred David Gill is not going to get into a debate with people who know what they are talking about. It's like a politician going on GMTV rather than than the Today programme. Listen to his answers as he was grilled at Birmingham University. His only repsoste was "how many trohies have we won?" He wouldn't, and couldn't, justify the Glazer business model. Keep up the good work.

Anonymous said...

hey man u doing extremely great job.i really like ur blog everyday i surf ur blog.keep it up.
i have some question if u have answer please reply me back.

only from champions league in 2008 we won & in 2009 We much we earn Prize money And Television money. Some One Told me That when we won champions league in 2008 we receive 80 million pound . but i still don't know this is right ya wrong.
i want 2 know that where this money gone.

Anonymous said...

As Gill noted in the Five live interview, his interviewer was not an accountant. How about getting Gill to be interviewed by Ewan Davies, or even Adrian Chiles, not sure about the latter's qualifications, but he did host the lunchtime business programme and of course, MOTD on Sunday?
Forlorn request no doubt, but worth stressing that Gill has never actually faced someone who can ask proper business related questions.

United Rant said...

I don't think we can expect any real level of transparency from Gill on these matters. He has hunkered down and until financial pressures force a change in attitude the club will continue to be pretty recalcitrant.

Good performance on Sky News btw!

ManUtdPeople said...

oliw's reply is just childish not even worth saying anything back thats my opinion I am entitled to it.

Anonymous said...

So £714m of debt at an interest rates of over 9% is not a problem well please let me know how big it has to get before you lift your head out of the sand it's currently buried in you parasite loving muppet

Kev said...

anders.... you seem to be in the know about all of this. Can't you speak to a "few people" from China lol?!

You know, a "few of the upcoming richest people in the world"! :D

Kev... again said...

Also, ManUtdPeople is very niave. Already into this blog comment section he is marginalised by the man utd supporters so you do not need to waste your time anders answering him again.

ManUtdPeople said...

This blog is just a load of idiots moaning about the finances instead if supporting the team.

Green and gold is for twats as well.

I wear my red united scarf to every home united game. I support the team and leave the company side of MANCHESTER UNITED to the people who are paid to look after that side of stuff.

I'm finished now, not coming back rant over

Anonymous said...

You are basically saying, that you can't back up your points with cohesive arguments and debate intelligently on the subject so instead you are taking your ball home, why are you reading a blog about United finance if you arent interested?.

andersred said...

to the person who asked about getting 80m pounds for winning the CL, that's no right.

It's complicated but last season Barca got Euro7m as winners and we got Euro4m as runners up. We both got the same for getting to each previous stage (Euro15.5m).

There are then "market pool" payments depending on how you do relative to other teams from your country and how big your country is (it relates to advertising income). England is bigger than Spain so we got Euro18.8m and Barca got Euro8.2m.

So the totals were:
United Euro 38.3m
Barca Euro 31.0m