Private equity in Nigeria: Replicating Manchester United's model
Private Equity in Nigeria: MTN and Ikeja City Mall.  Source: Stears Business

Many football fans first learnt about private equity (PE) when Malcolm Glazer controversially took over Manchester United in 2005 through his PE firm, Red Football. 

For much of the 1990s, Manchester United was arguably the best-run football club in England. They were able to stay debt-free while achieving great success on the football pitch by developing promising young teenagers into superstars. 

This success caught the attention of billionaire, Malcolm Glazer. His firm took a loan to fund a 98% take over of Manchester United’s shares. 

His next move was contentious. He transferred the loan burden to Manchester United, loading the club with hundreds of millions of pounds of debt. 

Many supporters were incensed with the sudden debt burden. Some even left to start a new football club - FC Manchester

Nonetheless, today, the business side of the club is doing better than the football team’s current form. Malcolm Glazer brought

Don’t limit your understanding. Join the Premium community to continue reading.

Osato Guobadia

Osato Guobadia

Read Latest

Eight numbers to worry about in 2021

PREMIUM - 15 JAN 2021

Has the Lagos BRT made your life easier?

PREMIUM - 14 JAN 2021

How Ghana came to dominate yam exports

PREMIUM - 13 JAN 2021

Merger and Acquisition deals in Nigeria: The ABCs

PREMIUM - 12 JAN 2021