Murdoch's Manchester United Bid Faces Mounting Pressure and Opposition

Strategic Insights -

Labour MPs, football supporters, and experts are condemning Murdoch's £623million deal to buy Manchester United, calling for Trade and Industry Secretary Peter Mandelson to step in and block the takeover. The Office of Fair Trading is scrutinising the deal, but it is believed that Mandelson will have the final say. The City is sceptical about the deal going through, with Manchester United's shares trading below the bid value, and the fans remain bitterly opposed.

Key Takeaways:

  • The £623million deal to buy Manchester United is facing mounting pressure and opposition from Labour MPs, football supporters, and experts.
  • The Office of Fair Trading is scrutinising the deal, but it is believed that Trade and Industry Secretary Peter Mandelson will have the final say.
  • Manchester United's shares are trading below the bid value, indicating that the City is sceptical about the deal going through.
  • The fans remain bitterly opposed to the takeover, with the Independent Manchester United Supporters Association calling on fans to vent their feelings at last night's match and organizing a rally next week.
  • Association chairman Andy Walsh claims that Murdoch "knows the price of everything and the value of nothing" and that fans should have a say in the way the game is run.
  • MPs are questioning privately whether Mandelson is prepared to sacrifice New Labour's love affair with Murdoch and come down on the side of the fans.
  • Mandelson's decision will test his mettle, particularly given his close friendship with Elisabeth Murdoch, daughter of Rupert Murdoch, and the £12million sponsorship of the Millennium Dome.
  • The Director General of Fair Trading's report is due in 30 days, and Mandelson then has a month to decide if he wants the Monopolies and Mergers Commission to take a look.

Statistics:

  • £623million: The value of the deal to buy Manchester United.
  • 200p: The original share price of Manchester United's shares on the stock market.
  • 215p: The share price of Manchester United's shares after the deal was announced.
  • 240p: The offer price of the deal.
  • £12million: The value of the sponsorship deal between BSkyB and the Millennium Dome.
  • 28: The age of Tim Allan, the head of public relations at BSkyB and a protégé of Peter Mandelson.

Sources:

  • Murdoch's £623million bid for Manchester United sparks opposition from Labour MPs and football supporters.
  • The Independent.
  • Football is about big business these days, but a balance has to be found, says MP Lin Golding.
  • The Independent.
  • MP Roger Gale calls for national boycott of Murdoch-owned Sun paper in protest.
  • The Independent.
  • BSkyB and Manchester United joint statement: "We want to reassure you about one thing above all: BSkyB are going to let Manchester United be Manchester United."