Liverpool and Manchester United fans do not have much in common, but one thing they share is their dislike, and in some quarters hatred, of their respective American owners. The amount of debt run up by the new owners at both clubs is enormous, and as such supporters are seeing relative levels of austerity at their clubs. Whilst at present this is irritating, what fans are most concerned about is what will happen years down the line with such debts in place. The question is, should and could the football authorities have done anything to stop these takeovers? And are there important lessons that can be learnt in the future?
When the Glazer family made it clear they wanted to buy the most prestigious brand in English football, the reaction from the fans was hugely negative. Mass protests were organised and calls were made for the powers that be to stop the Americans buying the club. The anti-Glazer movement failed to stop the takeover however, and as soon as the deal was complete United saw their level of debt go through the roof.
The Glazers had bought Man Utd by securing debt against the club, and it was recently reported that this had topped the £700 million mark, scary stuff indeed. More worrying for the fans was the news that the Glazer family are now £1.1 billion in debt, after borrowing extensively against their flagging shopping mall business. The Green and Gold movement really gathered pace last season, and you can certainly see the reasons why when the finances of the club are examined.
When Tom Hicks and George Gillett took over Liverpool, there was not the protests that were seen in Manchester. In fact at the time, many supporters welcomed the American buyout, with new owners of the club being seen as the only way Liverpool could compete with Manchester United and Chelsea. The duo’s ownership of the club however, has degenerated into farce. They are not on speaking terms and you sense there is a real feeling of antipathy between the pair, certainly not the best way to run a football club. Liverpool like Man Utd, are also in large amounts of debt, with RBS reportedly circling the club in order to recoup their money.
Liverpool and Man Utd fans are highly disillusioned with their American owners, and some might blame the footballing authorities for allowing the buyouts to happen, but could anything have really been done?
Fundamentally the Premier League is a free economic enterprise. The authorities cannot stop an individual or group from making a legitimate takeover as long as it meets certain criteria. In this respect it may have been difficult for the FA or the Premier League to act, but there is one tool they have at their disposal that can block potential takeovers. Anyone who intends to buy a club must meet a ‘fit and proper persons’ test, in order to ensure no dodgy dealings are going to take place. Some fans would argue that the owners of Liverpool and Manchester United should not have passed this test, surely plunging a club into massive levels of debt and perhaps even jeopardising its future is no way to run a club?
The trend of some of these foreign owners buying up clubs when quite frankly they do not have a clue about football, and neither it seems give a damn about the club’s supporters, is a worrying one. The levels of debt being run up at United and Liverpool are concerning, and there is nothing to stop other clubs from going the same way unless safeguards are put in place. The authorities can do nothing about the Americans at Liverpool and Man Utd now, but they might want to learn a few lessons before similar individuals move into the Premier League.
If you liked this article please follow me on Twitter. Subscribe to my RSS feed.
