Everybody Hates Goldman

For good reason of course. The following is from the FT.

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Man United owners set to cut Goldman ties

By Roger Blitz and Anousha Sakoui

Published: March 3 2010 23:03 | Last updated: March 3 2010 23:03

The Glazer family, owners of Manchester United, are considering ending their relationship with Goldman Sachs because of the role of Jim O’Neill, the bank’s chief economist, in efforts to take the club off their hands.

Mr O’Neill, a lifelong United supporter and former board member, is spearheading the “Red Knights” group of financiers who met in London this week over a proposal to buy the club for a sum in excess of £1bn.

Mr O’Neill’s role has drawn Lloyd Blankfein, the bank’s chairman and chief executive, into the saga because Goldman Sachs was one of the syndicate of banks helping the club with its recent £500m bond issue.

According to people with knowledge of the situation, Joel Glazer, the family member most involved in United, called Mr Blankfein following comments by Mr O’Neill to a Bloomberg reporter in January in the wake of the bond issue.

Mr O’Neill, who is well known to United manager Sir Alex Ferguson and chief executive David Gill, was quoted as saying: “There’s too much leverage going on with Man United. It’s not a good thing. I’m not a buyer of the bond. I value my long-term support for Man United better than anything else.”

One person close to the situation said assurances from the bank that Mr O’Neill’s views on the club were his own business had failed to satisfy the family.

The family is now making clear that Mr O’Neill’s actions have jeopardised the chances of the club putting more corporate finance work with Goldman Sachs, the person said.

Goldman Sachs declined to comment. Mr O’Neill stressed last night he was acting in a “personal capacity”.

The family’s irritation with the Red Knights campaign was further inflamed on Wednesday when Mr Gill launched a forthright attack on Keith Harris, executive chairman of investment bank Seymour Pierce. Mr Harris, who has masterminded several football club takeovers, is part of the Red Knights campaign calling on United fans to boycott matches to undermine the Glazers’ ownership.

Mr Gill said: “[Mr] Harris will go anywhere that there’s a bit of publicity around ... but if you look at his track record in football, it is not a lot to write home about.” Mr Harris could not be reached for comment.

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