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

Man Utd's Shares To Trade Below Expectation

Fri 10th Aug 2012 | Clubs Ownership

Shares in Manchester United are expected to trade at $14, much lower than expected and reducing the club’s value by as much as $100 million.

United’s initial public offering (IPO) had expected to raise over $3billionn but weak demand has forced the club to re-evaluate its offer and is now expected to raise only $2.3 billion.

16.7 million shares have been offered, with the proceeds to be split equally between it and its owners, the Florida-based Glazer family, a move which has angered many sections of United’s fan base.

A spokesperson for Manchester United Supporters’ Trust (MUST) criticised the IPO earlier this week stating: “Essentially the IPO is bad for investors, the club and the fans.”

MUST have also been heavily critical of the structure of the shares which will see investors gain only one tenth of the voting rights for each share.

“It has to stop and we want the IPO shelved and a proper fan ownership model put in place – one share, one vote”

The IPO had been intended to help pay off some the debt leveraged on the club by the Glazers’ takeover. The loss of as much as $50 million proceeds will be a blow as it copes with a heavy debt burden.

The club had planned to use the money to pay down its debt pile that dates back to the Glazers' $1.2 billion leveraged buyout in 2005. Manchester United's debt load stood at over $682 million as of June 30.

However, the deal will still make Manchester United the largest sports-team IPO on record, but the valuation is a setback for the 134-year-old club, which had to abort plans for an offering in Singapore and then saw Morgan Stanley leave the underwriting syndicate partly due to disagreements over valuation.

Manchester United will start trading today (Friday) on the New York Stock Exchange under the ticker "MANU", with the team's management expected to ring the opening bell at the exchange.

Posted by: Aaron Gourley

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

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

Altrincham FC Seek New Investment

Thu 13th Jul 2017 | Clubs Ownership

At a recent Extraordinary General Meeting, the shareholders of Altrincham Football Club passed a series of motions which will now allow the club to bring in new investors. A new controlling share in...

Hartlepool United Announced Club Restructure

Wed 28th Jun 2017 | Clubs Ownership

Hartlepool United Chairman, Pam Duxbury has announced the first phase of the club’s restructure following relegation to the National League and subsequent resignation of Gary Coxall. Coxall...

Chinese company 5USport buy stake in Northampton Town

Mon 26th Jun 2017 | Clubs Ownership

Northampton Town Football Club have announced a new partnership with 5USport, a Sports Development and Education Company based in Guangzhou, China. As part of this partnership and following approval...

Leyton Orient purchased by business consortium headed by Nigel Travis, a life-long fan of the club

Fri 23rd Jun 2017 | Clubs Ownership

Leyton Orient Football Club has announced that it has been purchased by a business consortium Eagle Investments 2017 Limited, headed by British-born Nigel Travis, 67, the Chairman and CEO of Dunkin'...