Motterman
24 May 2005, 02:21 PM
Please find attached the full text of a formal submission sent today by
Shareholders United to NFL Commissioner Tagliabue concerning the
conflict between Manchester United's current and future involvement in
gaming and gambling and Mr Malcolm Glazer's simultaneous ownership of an
NFL franchise.
For any further information or on-the-record statements regarding this
letter please contact our official US representative JD Deitch.
Mr Deitch can be reached on +1 571 278 8332. He will be available for
media comment from 1pm ET today (Tuesday, 5/24/05)
May 24, 2005
Mr Paul Tagliabue
Commissioner of the National Football League
National Football League
280 Park Avenue
New York, NY 10017
*RE: **Malcolm** **Glazer**, the **Tampa** **Bay** Buccaneers and
**Manchester** United*
Dear Commissioner Tagliabue,
I am writing to you as the official US representative for, and on behalf
of, Shareholders United, a not-for-profit organization that represents
more than 30,000 fans and shareholders of the English F.A. Premier
League team Manchester United Football Club (MUFC). Many of our
organization’s members, myself included, are US citizens.
As you are no doubt aware, Mr Malcolm Glazer, owner of the NFL’s Tampa
Bay Buccaneers franchise, has assumed majority control of Manchester
United PLC (MUPLC), the holding company for MUFC. We, the members of
Shareholders United (and more expansively, the worldwide fans of MUFC)
presently hold a significant equity stake in MUPLC and are committed to
the permanent ownership of our team by its devoted fans in a manner
similar to which the Green Bay Packers operate.
We have noted that the Finance Committee of the National Football League
has announced plans to examine Mr Glazer’s acquisition (through his Red
Football Ltd vehicle) of MUPLC. In particular, we understand they are
reviewing the NFL’s franchise ownership regulations to determine whether
any conflict with those regulations arises as a result of Glazer’s
acquisition.
We would first like to indicate our willingness to assist this
examination in any way that we can. We have detailed independent records
on the business and financial structure of MUPLC and have also tracked
the progress of Mr Glazer’s increasing involvement with the company
during the last two years. Much of this information may well be of use
during the Finance Committee’s deliberations, and we would be happy to
supply it. We also have democratically elected officers with legal and
financial expertise who would be willing to appear before the Committee
as witnesses.
However, I wish at this time to bring to your attention a particular
area of concern on our part over Mr Glazer’s acquisition which would
appear to fall within the purview of the committee’s review and/or NFL
regulations.**
* *
Our understanding of NFL regulations is that they prohibit NFL franchise
owners from any commercial or promotional activities in gaming or
gambling, or association with organizations that operate in these
fields. There are four areas of concern here.
*1. Gambling at Old Trafford*
MUPLC has a long-standing commercial relationship with Ladbrokes, the
bookmaking subsidiary of Hilton Group plc. Ladbrokes is indeed one of
MUFC’s premier corporate sponsors. One of the most visible
manifestations of this relationship is that Ladbrokes operates
bookmaking stalls in most of the concession areas at the Old Trafford
stadium owned by MUPLC. While UK law does set age restrictions on
betting, these stalls are nonetheless in areas of the stadium frequented
by supporters of all ages.
*2. Online gambling and **Manchester** United*
The extent of MUPLC’s relationship with Ladbrokes also extends to MUFC’s
Internet site – www.manutd.com (http://www.manutd.com/) <http://www.manutd.com/>. Indeed in the
run up to the recent F.A. Cup Final, the official Manchester United
website was offering a ‘splash’ introduction page offering visitors the
chance to bet on the game via Ladbrokes. All users, /including
children/, needed to click through this wagering offer page in order to
access the main content.
*3. The FA Premier League, BSkyB and SkyBet*
As part of its broadcasting rights agreement with British Sky
Broadcasting (BSkyB), the FA Premier League (of which Manchester United
is a member) allows and indirectly benefits from an interactive
on-screen digital television betting service known as SkyBet. This has a
potentially far greater reach that Manchester United’s agreements with
Ladbrokes as it involves the posting of odds during live transmissions
of sporting events and offers the ability to place a bet at the push of
a button via a user’s remote control handset. SkyBet has the potential
to reach in excess of three million TV viewers in the UK.
Furthermore, we note that SkyBet is a subsidiary of BSkyB, meaning that
the largest contributor to MUPLC’s income is, in effect, a bookmaker.
*4. **Manchester** United **PLC** and **Las Vegas** Sands*
Earlier this year, Manchester United entered into an agreement with the
US gambling operation Las Vegas Sands to bid to build a ‘super casino’
adjacent to the Old Trafford stadium. This bid is unlikely to succeed –
the nearby town of Blackpool is considered favorite for the only
franchise being made available at this time by the UK government – but
does appear to signal the two companies’ intentions as more such
franchises are made available in the future.
Taken together, these examples demonstrate that MUPLC has more than just
a passive relationship with gambling and gaming. It is and has been very
active in this regard and has plans to become much more active in the
future. As such, it is our view that these arrangements clearly conflict
with Mr Glazer’s position as an NFL franchise owner.
Similarly, we note the NFL’s long-standing concern over the exposure of
minors to gambling connected to sport and would argue that at least
three of these examples clearly represent such exposure.
I hope that this information is of use to you. If you require any
further information on any of them or indeed any other aspect of MUPLC’s
finances, Shareholders United has conducted extensive research in this
area and, as noted above, would be happy to supply you with our findings.
I should finally note that Shareholders United is today releasing the
contents of this letter to its members, sister organizations in the ‘Not
For Sale’ campaign and the media.
Yours sincerely,
J.D. Deitch
US Representative
Shareholders United
Shareholders United to NFL Commissioner Tagliabue concerning the
conflict between Manchester United's current and future involvement in
gaming and gambling and Mr Malcolm Glazer's simultaneous ownership of an
NFL franchise.
For any further information or on-the-record statements regarding this
letter please contact our official US representative JD Deitch.
Mr Deitch can be reached on +1 571 278 8332. He will be available for
media comment from 1pm ET today (Tuesday, 5/24/05)
May 24, 2005
Mr Paul Tagliabue
Commissioner of the National Football League
National Football League
280 Park Avenue
New York, NY 10017
*RE: **Malcolm** **Glazer**, the **Tampa** **Bay** Buccaneers and
**Manchester** United*
Dear Commissioner Tagliabue,
I am writing to you as the official US representative for, and on behalf
of, Shareholders United, a not-for-profit organization that represents
more than 30,000 fans and shareholders of the English F.A. Premier
League team Manchester United Football Club (MUFC). Many of our
organization’s members, myself included, are US citizens.
As you are no doubt aware, Mr Malcolm Glazer, owner of the NFL’s Tampa
Bay Buccaneers franchise, has assumed majority control of Manchester
United PLC (MUPLC), the holding company for MUFC. We, the members of
Shareholders United (and more expansively, the worldwide fans of MUFC)
presently hold a significant equity stake in MUPLC and are committed to
the permanent ownership of our team by its devoted fans in a manner
similar to which the Green Bay Packers operate.
We have noted that the Finance Committee of the National Football League
has announced plans to examine Mr Glazer’s acquisition (through his Red
Football Ltd vehicle) of MUPLC. In particular, we understand they are
reviewing the NFL’s franchise ownership regulations to determine whether
any conflict with those regulations arises as a result of Glazer’s
acquisition.
We would first like to indicate our willingness to assist this
examination in any way that we can. We have detailed independent records
on the business and financial structure of MUPLC and have also tracked
the progress of Mr Glazer’s increasing involvement with the company
during the last two years. Much of this information may well be of use
during the Finance Committee’s deliberations, and we would be happy to
supply it. We also have democratically elected officers with legal and
financial expertise who would be willing to appear before the Committee
as witnesses.
However, I wish at this time to bring to your attention a particular
area of concern on our part over Mr Glazer’s acquisition which would
appear to fall within the purview of the committee’s review and/or NFL
regulations.**
* *
Our understanding of NFL regulations is that they prohibit NFL franchise
owners from any commercial or promotional activities in gaming or
gambling, or association with organizations that operate in these
fields. There are four areas of concern here.
*1. Gambling at Old Trafford*
MUPLC has a long-standing commercial relationship with Ladbrokes, the
bookmaking subsidiary of Hilton Group plc. Ladbrokes is indeed one of
MUFC’s premier corporate sponsors. One of the most visible
manifestations of this relationship is that Ladbrokes operates
bookmaking stalls in most of the concession areas at the Old Trafford
stadium owned by MUPLC. While UK law does set age restrictions on
betting, these stalls are nonetheless in areas of the stadium frequented
by supporters of all ages.
*2. Online gambling and **Manchester** United*
The extent of MUPLC’s relationship with Ladbrokes also extends to MUFC’s
Internet site – www.manutd.com (http://www.manutd.com/) <http://www.manutd.com/>. Indeed in the
run up to the recent F.A. Cup Final, the official Manchester United
website was offering a ‘splash’ introduction page offering visitors the
chance to bet on the game via Ladbrokes. All users, /including
children/, needed to click through this wagering offer page in order to
access the main content.
*3. The FA Premier League, BSkyB and SkyBet*
As part of its broadcasting rights agreement with British Sky
Broadcasting (BSkyB), the FA Premier League (of which Manchester United
is a member) allows and indirectly benefits from an interactive
on-screen digital television betting service known as SkyBet. This has a
potentially far greater reach that Manchester United’s agreements with
Ladbrokes as it involves the posting of odds during live transmissions
of sporting events and offers the ability to place a bet at the push of
a button via a user’s remote control handset. SkyBet has the potential
to reach in excess of three million TV viewers in the UK.
Furthermore, we note that SkyBet is a subsidiary of BSkyB, meaning that
the largest contributor to MUPLC’s income is, in effect, a bookmaker.
*4. **Manchester** United **PLC** and **Las Vegas** Sands*
Earlier this year, Manchester United entered into an agreement with the
US gambling operation Las Vegas Sands to bid to build a ‘super casino’
adjacent to the Old Trafford stadium. This bid is unlikely to succeed –
the nearby town of Blackpool is considered favorite for the only
franchise being made available at this time by the UK government – but
does appear to signal the two companies’ intentions as more such
franchises are made available in the future.
Taken together, these examples demonstrate that MUPLC has more than just
a passive relationship with gambling and gaming. It is and has been very
active in this regard and has plans to become much more active in the
future. As such, it is our view that these arrangements clearly conflict
with Mr Glazer’s position as an NFL franchise owner.
Similarly, we note the NFL’s long-standing concern over the exposure of
minors to gambling connected to sport and would argue that at least
three of these examples clearly represent such exposure.
I hope that this information is of use to you. If you require any
further information on any of them or indeed any other aspect of MUPLC’s
finances, Shareholders United has conducted extensive research in this
area and, as noted above, would be happy to supply you with our findings.
I should finally note that Shareholders United is today releasing the
contents of this letter to its members, sister organizations in the ‘Not
For Sale’ campaign and the media.
Yours sincerely,
J.D. Deitch
US Representative
Shareholders United