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Why United favoured the Super League

Why did Manchester United back the European Super League - and pull out when they saw the reputation of their brand being threatened?

United’s owners, the Glazer family, are footing a UEFA levy that will ultimately cost between €5 million and €10 million (£4.3 million-£8.6 million) as well as a one-sixth share of the £22 million fine imposed by England’s governing bodies after United joined five other Premier League clubs in signing up for the breakaway competition.

But that commitment of at least £8 million still falls short of the £10.7 million in dividends United paid to shareholders on July 30 — the second such payment of the year. United are the only Premier League club to pay semi-annual dividends.   The Glazers receive about £8m each time. Since 2006, United have spent more than £1 billion on financing the Glazers’ leveraged takeover the previous year, with dividends and interest payments on the debt costing roughly £44 million each year.

When discussing broadcasting revenue for Premier League and European matches, the latest accounts state these contracts are “negotiated collectively by the Premier League and UEFA respectively”. “We are not a party to the contracts negotiated by the Premier League and UEFA,” the document adds. “Further, we do not participate in and therefore do not have any direct influence on the outcome of contract negotiations.”

The upshot of this is the terms may not be “as favourable to us as we might otherwise be able to negotiate individually with media distributors. Furthermore, the limited number of media distributors bidding for Premier League and UEFA club competition media rights may result in reduced prices paid for those rights and, as a result, a decline in revenue received from media contracts”.

Another passage makes clear another concern — the fact that most Premier League rule changes require the support of at least 14 of its 20 clubs.

“Our interests may not always align with the majority of clubs and it may be difficult for us to effect changes that are advantageous to us,” it says. “If the Premier League clubs pass rules that limit our ability to operate our business as we have planned or otherwise affect the payments made to us, we may be unable to achieve our goals and strategies or increase our revenue.”


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