The Isolation of David Gill

Man Utd CEO on the sidelines

The Glazer brothers are not stupid. In fact, they are pretty darn smart. They have owned Manchester United now for some four years. Initially there were substantial efforts made to prevent them from taking over the club, some of those efforts approaching threats of bodily harm.

But they stuck to their guns. They know how to implement a leveraged buy out, and did just that, heaping significant amount of debt on the club. They didn’t shy away from using all the financial tools available, including pay-in-kind financing, the most risky (and creative) of financing techniques.

Glazer brothers have the last laugh

They kept a low profile and worked behind the scenes. But with Chelsea winning the premier league titles in 2005 and 2006 it looked like the Glazer strategy was not working.

However, they persevered. They kept Sir Alex at the helm, gave him a decent transfer kitty, and kept the other senior Man U executives in their jobs. Chief among them was David Gill, elevated to CEO upon Peter Kenyon’s departure to Chelsea.

David Gill quickly moved from anti-Glazer to pro-Glazer. Stability was important for the Glazer-owned Man U and Gill provided that. The fans’ animosity was neutralized.

With Sir Alex and Gill front and center, and the Premier League trophy back in the trophy cabinet in 2007, the Glazers were able to convince the Man U constituency that things were normal.

Behind the scenes however, things were changing. The Glazers were in charge, particularly Joel but also the others. Most decisions for the club were made in Tampa, not Manchester.

The finance director of Man U left. The commercial director of Man U left. A long time advisor to the Glazers opened a commercial office for the club in London and now has six senior executives – all new hires – based there. The new contract with AON was masterminded and negotiated by the London team. Gill apparently had very little to do with it.

The Glazers have now hired a COO for the club (a job that didn’t exist before), an alumnus from Cirque du Soleil, to run all stadium activities, taking that role from Gill.

David Gill consigned to the sidelines under the Glazers

Gill’s role is now pretty much limited to football activities. Although obviously a very important role in theory (commercial revenues are dependent on football results), Gill has very little discretion because Sir Alex controls everything football related. And you don’t make “suggestions” to Sir Alex as to how things should be run.

In the backrooms, the Glazers must be considering a Man United post Sir Alex. There is no revamping of football activities while Sir Alex is around, and in fact they have to be quite happy with Sir Alex. But we all know he won’t be around forever. For so long as Sir Alex is around, Gill has a limited roll to fulfill. Thereafter, who knows.

Odds are that Gill will need to seek greener pastures elsewhere as with a new coach will likely come a new Glazer-appointed CEO.  It is doubtful Gill would take another club role. But a senior FA or UEFA role might suit him well.

We shall enjoy watching things unfold.