United take the 99 steps

SOCCER/Manchester United power struggle: Manchester United have finally delivered their response to the 99 corporate governance questions posed by major shareholders John Magnier and JP McManus.

Neither side in the dispute commented on the matter last night but it is understood that a substantive document was faxed by United to Ireland today almost two weeks after the original letter was sent to Old Trafford chairman Roy Gardner.

Magnier and McManus - who through their Cubic Expression Group own 25.5 per cent of the club - and their legal advisors will now study the reply in detail before deciding on their next course of action.

Gardner and chief executive David Gill will spend an anxious few days awaiting further developments, knowing their future with the club could hinge on the eventual outcome.

If the response is not satisfactory, it is thought the Irish duo will pursue the option of either calling for an emergency general meeting, demanding a seat on the United board or reporting their concerns to the Financial Services Authority.

The central component of Magnier and McManus's original letter was to highlight areas where they felt United's conduct fell "short of best practice".

Of major concern was the amount of money paid out to agents involved in transfer deals, specifically the 15 of the most recent set out in the 12-page letter to Gardner, dating back to Jaap Stam's arrival from PSV Eindhoven in 1999.

Not mentioned in the letter but of equal significance, was why United authorised £750,000 in agents fees during the deal that saw Louis Saha arrive from Fulham during last month's transfer window when the French striker had publicly declared his intention to join the club.

United only revealed they had paid out the sum because of the pressure being applied from across the Irish Sea and Gill has also sanctioned a "thorough internal review" of the club's financial structures in response to Magnier and McManus's demands for an independent audit, a move which met with a stony response from the horse-racing tycoons.

When reports of the 99-question dossier first erupted almost a fortnight ago, the United board felt it was inextricably linked to Magnier's own dispute with manager Alex Ferguson over the stud rights to record-breaking stallion Rock of Gibraltar.

It is clear now that no matter what the eventual outcome over "The Rock's" case, which is currently heading for the Dublin High Court sometime next year, the Old Trafford hierarchy will be forced into reforms or face the very real prospect of losing their jobs.

The Irish camp became increasingly irritated at the failure of Gardner or Gill to acknowledge their letter had even been received and relations between the two sides are now at an all-time low.

Almost daily new issues are being raised about the way United is run, the latest of which is why Ferguson, as an employee, was allowed to use the club's in-house TV station - MUTV - to attack the major shareholders.

Requests for the transcripts of Ferguson's pre-match press conferences on Friday, in which the Scot spoke openly about the strain the dispute was placing on him and his family for the first time, were issued on Tuesday and will now be checked for defamatory comments.

During a series of interviews he explained that his son Jason had been forced to call in the police amid allegations his mail had been stolen, his bin bags were being rifled through and he had spotted people hiding in bushes in his garden.

He also added: "It is incomprehensible I would abuse my position at this club. I have been here 17 and a half years and nobody has ever raised a doubt about that.

"All of a sudden because of a private matter about a racehorse it is all coming out. It is not easy to take."

The Irish camp strenuously deny having any involvement in stealing from or snooping on Jason and the move signals attitudes over the issue are hardening.

Certainly the desire for greater corporate governance will not disappear now the questions have been raised in such a public manner.

Claims that the proof of the Old Trafford outfit being a well-run organisation are the massive profits and turnover they achieve have been dismissed out of hand.

The belief is that as a PLC United should try to maximise profit for their shareholders rather than just achieving it.

Because of that, the huge transfer fees paid out for Rio Ferdinand and Juan Sebastian Veron have also been questioned, as has the method of identifying new talent, which has always been left to Ferguson for final approval.

Such a challenge to Ferguson's authority has previously been considered unthinkable but the increasing pressure on Gill and Gardner may force the pair into a very uncomfortable situation where they either curb their manager's power or find their own removed completely.

Either way, the battle is certain to change forever United's approach to their responsibilities as a PLC.