News, Culture & Society

The Glazer family haven’t taken a dividend from Manchester United for the FIRST TIME since 2016

Manchester United’s first quarter financial results show the Glazer family haven’t taken a dividend from the club for the FIRST TIME since 2016, while United’s revenues rise by 13.6 per cent as they remain up for sale

  • Manchester United released their first quarter financial results on Thursday
  • The Glazer family didn’t take a dividend out for the first time since 2016  
  • They put the club up for sale last month following their 17-year reign in charge
  • The Glazers were criticised for taking an £11million dividend out in June 2022
  • United’s board of directors did not approve the latest semi-annual payment 

Manchester United’s first quarter financial results that were released on Thursday show that the Glazer family have not taken a dividend for the first time since 2016 after putting the club up for sale. 

The owners were criticised for taking an £11million dividend out of the club in June, but the board of directors did not approve the latest semi-annual payment to shareholders.

The figures show that United’s revenues rose by 13.6 per cent and the club is on target to make between £590m and £610m for the whole year, although it has made a pre-tax loss of £2.5m-a-week for the first quarter of 2022-23.

The Glazer family didn’t take a dividend out of Manchester United for the first time since 2016

Manchester United Supporters Trust welcomed the news in a statement on Thursday evening.

They said: ‘Tonight Manchester United announced, as part of the quarterly earnings report, that in a break with established precedent, it will not be paying a dividend to shareholders for the first time since dividends commenced in 2015.

‘MUST has raised the issue of dividends, at the highest levels of the club, and increasingly so in recent times.

‘Indeed the Fan Advisory Board on which MUST holds two places was set up specifically to facilitate open dialogue on strategic issues such as this. The MUST representative on the Fans Forum also raised objections to the dividend policy in its most recent meeting as recorded in the minutes here

United's first quarter financial results also revealed the club's revenues rose by 13.6 per cent

United’s first quarter financial results also revealed the club’s revenues rose by 13.6 per cent

‘We are glad that, while the dividend issue has dragged on for far too long, we have finally got to the right position.

‘Certainly dividends should not be paid when the football club is not achieving success on the pitch, challenging for top honours. That is rewarding failure and removes the incentive for the owners to ensure sufficient reinvestment of profits back into the football club.

‘Our view is that no further dividends should be paid while new investment and ownership remain unresolved.

‘Progress on issues like this can be slow, as we saw with the removal of the compulsory Automatic Cup Scheme or the installation of safe standing/rail seats, to quote two other examples in recent years. However it demonstrates that direct dialogue with the club does deliver results, if we are sufficiently persistent. You could say it pays dividends in the end.’

 

The Glazers' highly-controversial 17-year reign has been marred by protests from United fans

The Glazers’ highly-controversial 17-year reign has been marred by protests from United fans

United’s much-hated American owners have been a source of contention at Old Trafford ever since they became majority owners in 2005, facing significant fan anger and backlash.

After taking over the club through a leveraged £790million buyout which heaped a huge debt on United, including placing £525million worth of loans onto the brand of the club, they racked up the United’s debts to £495m by the end of 2021. 

They have come under pressure from fan groups for some time to end their 17-year reign with the family announcing last month they are open to selling the club.

United confirmed the sensational news that the world’s biggest football team is effectively for sale and that the Glazers would be willing to listen to offers in excess of £5billion. 

The Raine Group and Rothschild and Co were appointed as exclusive financial advisors to oversee the process. United said the process of a sale was designed to enhance future growth, but added that the club ‘will consider all strategic alternatives, including new investment into the club, a sale, or other transactions’.

The American owners of Man United announced last month they were open to selling the club

The American owners of Man United announced last month they were open to selling the club

Their reign has been dominated by a decline in United's on-pitch performance and success

Their reign has been dominated by a decline in United’s on-pitch performance and success

A statement from co-chairmen Avram and Joel Glazer at the time read: ‘The strength of Manchester United rests on the passion and loyalty of our global community of 1.1bn fans and followers.

‘As we seek to continue building on the club’s history of success, the board has authorised a thorough evaluation of strategic alternatives.

‘We will evaluate all options to ensure that we best serve our fans and that Manchester United maximizes the significant growth opportunities available to the club today and in the future.’

Overall, the Glazers have taken more than £1bn out of United in the form of dividends, interests, costs and fees during their 17-year-reign, which has been dominated by a decline in on-pitch performance and success.

The Red Devils have now not won the Premier League for almost 10 years, while they have failed to finish in the top four in five of the past nine seasons. 

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Read more at DailyMail.co.uk



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