Ministers vow to outlaw future football raids

Ministers want to change the law to prevent future "hostile" takeovers of Premier League football clubs in the wake of Malcolm Glazer's £790m acquisition of Manchester United. The Glazer deal, which has enraged the club's fans, has also caused deep concern at the highest levels of Whitehall. Ministers accept that they are unable to block the deal's completion but a highly placed government official has made clear that legislation on takeovers is likely to be changed to prevent the future "exploitation" of clubs by foreign owners. Ministers aim to return to the system that allowed Stephen Byers, then the Trade Secretary, to block the proposed takeover of Manchester United by Rupert Murdoch's BSkyB in 1999 on "public interest" grounds. No such intervention has been possible this time round because of subsequent changes to legislation governing takeovers of public limited companies such as United, which were designed to streamline deals. The government official questioned the motives of investors such as Glazer. He said: "We are in danger of the most successful football clubs in Europe and one of the greatest football leagues in the world being used for purposes for which they were never designed. We need to look again at the public interest side of things and whether we need to change the corporate structure of football clubs that are also PLCs. We have got to be prepared to say what football is about. Is it there to be exploited, or does it have a wider public interest?" Harriet Harman, the constitutional affairs minister, branded Mr Glazer's takeover "hugely unpopular" with the club's fans. She added: "There is a concern that ticket prices will go up and there won't be investment in new players. The Government is keeping a very close eye on it." Tony Lloyd, the Labour MP for Manchester Central and a United fan, said: "I want the Government to look into this. There are real questions about how we run any type of industry." Richard Caborn, the sports minister, said: "I hope Malcolm Glazer will open up constructive discussions with the club, its management and its fans, and with the football authorities, to make sure nothing happens to the detriment of English football."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.