MULTI-MILLIONAIRE businessmen John Magnier and JP McManus have lost patience with the directors of Manchester United over governance of the club, and are considering a number of fresh strategies including seeking representation on the club's plc board.
Such a move would increase the pressure on United manager Alex Ferguson, who is in dispute with Magnier over the ownership of stallion Rock of Gibraltar, which is valued at up to stg£200m through its stud fees.
Magnier and McManus, who hold 25.49% of the club's shareholding, are unhappy with the board's response to questions they have raised in relation to details of recent transfers and the use of agents in these transfers ? particularly those involving Ferguson's son, Jason. The company has moved to set up an internal investigation into the transfers, to be carried out by the club's finance director. However, this is unacceptable to Magnier and McManus. They want a fully independent investigation.
If this investigation is not established, Cubic Expression ? the investment vehicle through which Magnier and McManus hold the shares in United ? will immediately act to increase the pressure on the club's board.
One option being considered is a demand for board representation. Magnier and McManus have decided against seeking representation up to now because this would have hindered their efforts to build up a shareholding in the club. However, with their stake now coming close to the level that would require a full takeover bid to be initiated, this factor is no longer a deterrent.
Given the size of Cubic Expression's shareholding, it would be virtually impossible for the United directors to resist offering at least two directorships to representatives of Magnier and McManus.
Cubic can also demand an extraordinary general meeting of the club's shareholders, and with its 25% stake, it would be in a position to force through whatever measures it wanted at the meeting.
It is understood that Magnier and McManus are concerned at the level of influence Ferguson wields at Manchester United, something which they feel is not in line with good corporate governance. Their concern about the role of agents in recent transfers was heightened by the news that an agent, involved in the transfer of striker Louis Saha to United, received stg£750,000, even though Saha sought a move to Old Trafford.
There were signs this weekend that the pressure from Magnier is having an impact at boardroom level. United chief executive David Gill hinted of a belief that Ferguson should not allow the dispute over stud rights for Rock of Gibraltar to reach court.