Magnier and McManus turn the screw
LONDON, England -- Irish racing tycoons John Magnier and JP McManus have increased their stake in Manchester United to 28.89 percent, just below the threshold at which they must launch a formal takeover.
They bought a block of 8 million shares, reportedly from Dutch media mogul John de Mol, through their private investment company Cubic Expression.
The move is another twist in Magnier's feud with United manager Alex Ferguson, who is suing him over stud rights to champion racehorse Rock of Gibralter.
In 2001, Magnier gave Ferguson joint ownership of the horse without charging him a penny but Ferguson assumed he was being given a half share of stud fees which could be worth up to 200 million pounds ($300 million).
With that battle heading for the courts, the Irish pair have used their influence as United's chief shareholders to call into question the club's transfer dealings, some involving Ferguson's son Jason.
Magnier and McManus' legal team are currently looking at United's official response to the 99 corporate governance questions they posed last month that highlighted what they believed to be flaws in the club's financial structures, particularly the amount of money paid out to football agents, including Ferguson's son.
If they do not find the response satisfactory, they could force an emergency general meeting, demand a place on the board or report their concerns to the Financial Services Authority.
Last month Manchester also announced they had agreed a new 12-month rolling contract with the 62-year-old Ferguson.
Sir Alex's current contract would have expired in June 2005 and the new contract is extended for a year.
It was widely understood that pressure from Magnier and McManus resulted in United shelving plans to reward Ferguson for more than 16 glory-rich years of service with a new four-year contract.
Sources inside the United camp were playing down the significance of Wednesday's move but there is little doubt that it increases the focus on chairman Sir Roy Gardner and chief executive David Gill.
Against this backdrop, a group of United fans, calling themselves 'United 4 Action,' hope to stage a mass demonstration at next month's Cheltenham Festival where Magnier and McManus will have several runners.
