- Joined
- Apr 28, 2018
- Messages
- 344
Here is a story (a bit long and I have never done this so please bear with me). In the 19th century, some railway workers in England decided to get together and form a football club. Football in England was a working-class sport, and bound communities together. They called it the Newton Heath LYR Football Club and proceeded to play other clubs close by. The games were opportunities for socializing, bound neighbours towards a common purpose and football was England's most popular sport. The club became successful but was organised in a haphazard way so couldn't pay its bills and was nearly wound up. They found four businessmen who each invested GBP 500 for a "direct interest" in running the club. They changed the club's name to Manchester United. England has a structure of connected football leagues with promotions and relegations and the club, depending on how it did on the field, yo-yo'd up and down that structure for many years.
Generations in families "supported" this club as tribes do. It was an opportunity to bond, to rail against the systems in which they toiled morning and night, to drink, to pass something on to one's children. It became the culture.
It had originally been owned by the railway company who in 1892 let supporters own a share of the club by filling out an application form and paying GBP 1. The club's ownership was thus widely-held in the community. However, after the near bankruptcy, the interests started being consolidated and by the 1960s, when the club started having more success and even won the European Cup, it was a large asset. The club's ownership was thus widely-held in the community. However, after the near bankruptcy, the interests started being consolidated and by the 1960s, when the club started having more success and even won the European Cup, it was a large asset. Seeing this connection, a savvy investor immediately started buying up outstanding shares and viewing this as a business. After the end of the Cold War, the investor saw an opportunity to monetise the equity and took it public.
Those shares meant that anyone could now control the club. In 2005, an American businessman called Glazer leveraged the club as an asset and only pledged GBP 160m ( borrowing the rest against the club itself) to buy it for GBP 800m. Since he didn't have the money, he made the club pay for the interest and hefty dividends for his and his children's upkeep. The club performance suffered but supporters kept supporting - some estimate there are now 650m supporters worldwide.
Today, Glazer is dead but his children are running the club. They take out most of the money (about GBP 1bn so far) but invest just enough so that the club makes money for them. The supporters pay money (in tickets, merchandising, TV rights) knowing they are being swindled but they have no choice. To stop supporting the club would mean they are turning their backs on their region, their culture, their families, the childhood memories of when their parents took them to a game or got excited about it.
It is one of the most supported club in the world but the only one in the grip of capital - the other two, Barcelona and Real Madrid, have managed to hold on to their widely-held supporter-owned structure. Every year, we supporters hope for the investment that will see the club prosper and every year we are faced with the same reality - the Glazers only want to make money.
Capital is supreme now, and our familial, cultural and tribal identities have been annexed by it. So we are stuck forever in this loop.