Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

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

George Soros takes minority stake in Manchester United

Wed 22nd Aug 2012 | Money & Finance

Billionaire financier George Soros has been revealed as the first major investor in Manchester United’s initial public offering (IPO) on the New York Stock Exchange (NYSE).

The high-profile Hungarian-American business magnate has secured a 1.9% stake in the Premier League club through his hedge fund, Soros Fund Management LLC.

United’s much-hyped IPO made its debut on the NYSE on August 9. Heading into the first day of trading the club had reduced the pricing of its IPO to $14 after initially stating it would offer 16.7 million shares between $16 and $20, a pricing that would have given the club a top-range valuation of $3.3 billion.

According to a filing with the U.S. Securities and Exchange Commission, Soros Fund Management has acquired 7.85% of United’s Class A shares. Soros was likely drawn to United because of the Premier League’s recent media rights deal, said Philip Hall, a partner at New York-based investment bank Inner Circle Sports which has advised on high-profile Premier League takeovers including Fenway Sports Group’s acquisition of Liverpool.

The Premier League secured a huge 70% rise in the value of its domestic live broadcast rights in June, with BSkyB and BT splashing out a combined £3.018 billion in an agreement spanning three seasons from 2013-14 to 2015-16. “This could be a play by Soros on the strength of Manchester United’s brand and the English Premier League’s growing media rights,” Hall told Reuters. “The domestic rights are set to increase 70% for the 2013-14 season and the international media rights, set to be announced in late October or early November, are also expected to come in at a very robust uplift.”

Soros’ investment in United is not the first time he has eyed the football market. The 82-year-old was close to a takeover of Italian Serie A club AS Roma in 2008, before deciding against it. Thomas DiBenedetto’s American consortium was ultimately confirmed as the new owner of Roma in August 2011, bringing an end to a long-winded takeover saga.

At a price of $14 per share, Soros paid $43.6m for this stake. At yesterday's closing price of $13.06, the stake is now worth c. $40.7m.

Posted by: Kev Howland

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

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

Watford FC: An Unlikely Financial Success Story?

Wed 26th Apr 2017 | Money & Finance

The business model carried out by the owners of Watford FC is unlikely to be adopted by too many sectors outside of football, but by hiring and firing a conveyor belt of managers, they have managed to...

Newcastle United & West Ham Face Tax Investigation

Wed 26th Apr 2017 | Money & Finance

Newcastle United and West Ham United have been targeted by HMRC for alleged Tax and National Insurance fraud. Officers are understood to have raided the offices at St James’s Park and the London...

Premier League Revenues Grow But Losses Return

Thu 20th Apr 2017 | Money & Finance

Premier League clubs’ revenues increased to a new record of £3.6bn in 2015/16, according to Deloitte, the business advisory firm. Analysis of the financial results of Premier League clubs...

7 Tips From The Best Online Football Merchandise Stores

Thu 13th Apr 2017 | Money & Finance

CEO, Lewis Holland and the team at DiscountIF team have been studying various merchandise stores of football clubs in the UK. This article was originally posted here. We’ve compiled a short list...