Manchester united was a plc but even before that it was a partnership it changed to a plc in 1989, it was a partnership of 4 people. The Hillsborough disaster in 1989 lead to The Taylor Report witch is a document, whose development was overseen by Lord Taylor of Gosforth, concerning the aftermath and causes of the the disaster. The Taylor report demanded that all the top league clubs updated the seating and made it all safe and that everybody had to sit down. The problem for Manchester united was that they could not afford to make the changes needed, so Manchester united 4 owners had to sell sharers of the company making it a plc.
Plc stands for public limited company. The features of a plc are … that its shears can be sold on the stock market and people of the public can own it. Advantages of been a plc is that money can be made quickly and that the owners can not loose belongings if the business falls into debt, they just loose what they own in the club. The firm is big there for easier to negotiate with suppliers
Manchester United is now a private limited company (Ltd). The owner of Manchester united is Malcolm glazer and his family this is how they changed Manchester united to an ltd.Glazer had owned shares in the club since 2003, possibly earlier. On 26 September 2003, it was reported that he had increased his share to 3.17%, taking his shareholding above the 3% threshold at which he had to inform the club’s management about it. There had already been considerable speculation about the possibility of a takeover of the club, either by Glazer or by one of several other interested parties.
By 20 October, he had increased his shareholding to 8.93%, and on 29 November it was reported that he owned around 15% of the club and had met David Gill, its chief executive, to discuss his intentions. On 12 February 2004, Glazer increased his stake in the club to 16.31% and the following day’s Financial Times reported that he had instructed Commerzbank to explore a takeover bid. The club’s share price increased by 5% that day, valuing the club at a total of 41m.
Glazer increased his shareholding to over 19% the following June, although he was still not the largest shareholder By 20 October, he had increased his shareholding to 8.93%, and on 29 November it was reported that he owned around 15% of the club and had met David Gill, its chief executive, to discuss his intentions. On 12 February 2004, Glazer increased his stake in the club to 16.31% and the following day’s Financial Times reported that he had instructed Commerzbank to explore a takeover bid. The club’s share price increased by 5% that day, valuing the club at a total of ï¿½741m.
Glazer increased his shareholding to over 19% the following June, although he was still not the largest shareholder On 12 May 2005, Glazer reached an agreement with shareholders J. P. McManus and John Mangier to purchase their 28.7% stake in the team, giving him a controlling stake with just under 57% of the team’s shares. He then managed to secure the stake of the third largest stakeholder, Scottish mining entrepreneur Harry Dobson, taking his share totals to 62% of the club. Just hours later, Glazer had bought a further 9.8% stake taking his total ownership to 71.8%.
On 16 May 2005, Glazer took his shareholding in United to 75%, allowing him to end the club’s PLC status and delist it from the London Stock Exchange, which he did on 22 June. On 14 June 2005, Glazer successfully increased his share in the club to 97.3%, sufficient for full control. On 28 June he increased his share to 98%, enough for a compulsory buyout of all remaining shareholders. The final valuation of the club was almost 800 million (approximately $1.47 billion).
Features of Ltds. An Ltd is where there are at least 2 shareholders. Shares are sold privately to friends and family, who invest money into the business. The receive dividends in return dividends are where profits have to be sheared. Dividends are a name given to an amount of profit each shareholder receivers. Was Manchester united becoming an Ltd good or bad … yes as it brought a lot of money to the club but the fans were not happy they did not welcome the glazer takeover.
Advantages and disadvantages of Manchester United being a Ltd There are many advantages for Manchester being a Ltd such as selling shares to family and friends. The firm will become bigger; can employ specialists and also death and illness dose not affect the company. Disadvantages are shares can’t be sold on the stock market; accounts are not privet and expensive have to be set up and have to share profits by paying dividends and not all decisions are made by managers another one is Manchester united are now in debt because Malcolm Glazer had to take a lone to buy the club and the lone is so big he cant pay it off. It was better when the club was a Plc as it made fans feel as if they were part of the club because they could make decisions for the club, also when the fans were in charge the were more bothered about the welfare of the club but now Glazer is in charge he just wants to make money and is not overly bothered about the club.
Limited liability Limited liability is the opposite of unlimited liability. This means the owners (shareholders) are responsible for the business debts up to the amount of money they have up into the business. For example if you have put 1000 into the business that’s the most you can loose. They do not personally have to pay off the debts using there own money, so there possessions are not at risk.
Manchester united in the future could change from an Ltd to a Plc. This could happen if Malcolm glazer becomes bankrupt as he is ï¿½660 million in debt or if he has/want to sell. If he did sell then Manchester united could become Plc again this could benefit Manchester united because all the debt would go and they could make allot of money fast by selling shares on the stock market. Also the fans would be a lot happier as they could own a part of the club. Allot of fans were unhappy with tae take over signs of this were another club were set up named football club f.c united and also attendances fell.
But if Manchester united became a Plc once again then they would rise as fans would support the club more. The fans felt like taking the sprit they had put into the club and putting it into another club, a club they could be part of again. If united became a Plc there would be a great advantage for them as they would be able to pay off all there debts and with left over money they could buy new players for the club, by new coaches, new equipment, and new things for the fans such as better seating. In my opinion it would be best for united to turn back to a Plc because there are great advantages’ and Malcolm Glazer will never be able to pay off the debt as he has to pay ï¿½60 million interest a year. But a disadvantage if united become a publicly limited company again is someone may try buy the club again like Glazer did.