Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Manchester United seek 64m flotation

Wed 4th Jul 2012 | Money & Finance

Manchester United have applied to be listed on the New York Stock Exchange in the hope of raising £64million from selling shares in the club.

The Barclays Premier League club filed documents with the United States government's Securities and Exchange Commission on Tuesday.

Share prices have yet to be set, but United would use the money raised from the flotation to reduce its debts, the application said.

The flotation would leave control over the club in the hands of the Glazer family, the billionaire US sports investors who bought the club in 2005 for $1.47billion (£940million) - a takeover which left debts of £423million.

The club pursued a $1billion (£640million) flotation on the Singapore stock market last year, but the move was halted because of the volatile global economy.

Under the reorganisation, the team would become a wholly-owned subsidiary of Manchester United Ltd, a newly-formed holding company based in the Cayman Islands. 

Duncan Drasdo, chief executive of the Manchester United Supporters' Trust (MUST), responded "until we have more detail it is impossible to say with certainty what this will mean for Manchester United or its supporters."

"However from the initial information we have it appears that the new A shares on offer will be inferior to the Glazers' own B shares as they will carry only 1/10 of the voting rights. Furthermore the preliminary filing appears to indicate they will not be paying dividends either."

"So a minority shareholding with inferior voting rights and no dividends is going to severely impact on the attraction to both financial and supporter investors."

"However if it turns out that the vast majority of the proceeds are used to pay off the debt that is certainly something MUST would welcome and entirely vindicates our longstanding position that their debt was damaging our club."  

"The destination of the funds shows the Glazers have finally conceded this as their filing includes health warnings 'Our indebtedness could adversely affect our health and competitive position ... reduce availability of our cash flow to fund the hiring and retention of players and coaching staff,' adding: 'We intend to use all of our net proceeds from this offering to reduce our indebtedness.'

In April, Manchester United was valued by Forbes magazine at $2.24billion (£1.43billion), making it the most valuable club in world football for the eighth year in a row.

 

Posted by: Kev Howland (@FCKev)

 

http://www.buttonshut.com http://www.buttonshut.com http://www.buttonshut.com

---------------------------------------------------------------------------------------------------

RETURN TO LATEST NEWS SECTION

SUBSCRIBE TO THE FCBUSINESS RSS FEED

If you have any football business related news stories you’d like to share then please contact us –agourley@fcbusiness.co.uk or ryan@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

How Football Clubs Source Their Revenue

Thu 22nd Jun 2017 | Money & Finance

It will come as a surprise to no one that football is big business these days. Although players’ wages – especially at the top teams – have increased remarkably, the clubs can pay...

Why Does Your Club Offer Discounts? 5 Responses

Tue 6th Jun 2017 | Money & Finance

Following my article last week on the 3 observations about discounts offered on football clubs’ merchandise stores ; I wanted to share some more insight in to the merchandise space. I’ve...

West Ham United announce record season ticket renewals

Thu 1st Jun 2017 | Money & Finance

West Ham United have announced a club record number of season ticket renewals for the 2017/18 Premier League campaign. At Wednesday's 5pm deadline, over 90% of the 52,000 season ticket holders at...

Footballers, their cars, and how many minutes of play it takes to pay for them

Thu 1st Jun 2017 | Money & Finance

Online used car dealership Carspring have researched the vehicles driven by more than 250 of the world’s leading football players. With this information, along with the estimated salaries of...