Magnier turns pressure on Ferguson
LONDON, England (Reuters) -- Manchester United's largest shareholders, John Magnier and J P McManus, have asked its board to look at some of the transactions surrounding recent transfer deals, The Sunday Times reported.
Irish racehorse magnates Magnier and McManus hold more than 25 percent of the shares in the English league champions through their investment company Cubic Expression Ltd.
Magnier is also involved in a legal action with manager Alex Ferguson over stud rights to a race horse.
They had their lawyers write two letters to board chairman Roy Gardner earlier this month in which they questioned the fees charged by players' agents, the paper said.
"What we cannot understand is the necessity for the relative secrecy in which agents conduct their role and the astonishing fees which have been charged to the company," the newspaper reported a January 16 letter as saying.
The newspaper said Gardner's response, that there was nothing of any seriousness to investigate, was followed by a second letter dated January 21.
"Once again we invite you to respond providing proper explanations concerning the matters raised and we invite the board to reconsider its position," it read.
"No further steps should be taken while these matters remain outstanding...In the meantime we reserve all our rights as shareholders to take such action as we may be advised."
Manchester United were not available for comment on Sunday but The Sunday Times quoted a United statement as saying agents' fees were disclosed to the premier league and, as from January 1 when the transfer window opened, to the stock exchange.
In their statement to the stock exchange on Friday announcing the transfer of Fulham striker Louis Saha for 12.82 million pounds ($23.6 million), the club broke down the costs, disclosing 750,000 pounds paid in agents' fees.
Premier league chairman Richard Scudamore told BBC Radio on Sunday: "I think David Gill (United chief executive) has made a major step forward this week in the Saha deal in actually telling everybody exactly who got what for that deal.
"That is a step forward and if the shareholders wish to challenge the companies and the executives responsible for doing that, then that is exactly what should happen."
The move comes against the backdrop of a bitter legal wrangle between Ferguson and Magnier over the multi-million pound stud rights to the record-breaking racehorse Rock of Gibraltar.
Ferguson is also still in talks with United over an extension to his contract which is due to expire at the end of next season.
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