Tycoons unhappy with United review
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Alex Ferguson is involved in a bitter legal battle with majority United shareholder John Magnier.
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DUBLIN, Ireland (Reuters) -- Manchester United's pledge to conduct a review of recent player transfers has not satisfied major shareholders John Magnier and J.P. McManus, a source close to the Irish horseracing tycoons said on Tuesday.
United announced the review after Magnier and McManus, who own 25 percent of United's shares, demanded their concerns about manager Alex Ferguson be taken seriously.
They also also opposed to a new four-year contract for Ferguson, preferring a rolling one-year deal.
Magnier is involved in a bitter legal battle with the Scot over the ownership of the racehorse Rock of Gibraltar.
A source close to the Irish pairs' investment vehicle Cubic, said the English champions had failed to address the concerns outlined in a letter sent to the board earlier this month and that the internal review announced on Monday had changed nothing.
"The statement didn't address the serious issues raised in the letter about corporate governance which has been with the board for two weeks now," the source told Reuters.
"It did nothing to alleviate the legitimate concerns of shareholders."
The letter included 63 questions relating to corporate governance, compliance with regulatory guidelines, the conduct of player transfers and fees paid to transfer agents.
Transfer policies
In Monday's statement, United said their transfer policies were "among the most rigorous in football" and that Ferguson was not involved in financial negotiations with players, agents or clubs.
They said they would now include details of the commission paid to agents in their announcements of transfer deals.
The key to the row is the length of United's new contract with Ferguson, with Magnier and McManus threatening to force an emergency shareholder meeting if it is any more than a 12-month rolling deal, thus limiting compensation in the event of his early departure.
The contract is expected to be announced this week, a source at the club said. Ferguson, 62, has been in charge at United since 1986 and his current three-year contract runs out in 2005.
Whether any rolling contract would start from the day Ferguson signs or from the end of his existing deal is seen as crucial.
In Monday's statement to the London stock exchange United said they had no documentary evidence to support media allegations about recent transfers.
English Football Association spokesman Adrian Bevington said on Tuesday the FA was studying leaked documents provided by the Sunday Times newspaper over the transfer of American goalkeeper Tim Howard to United.
The FA is not undertaking a formal investigation of United, however, he said. United have denied any wrongdoing in the Howard transfer deal.
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