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

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

West Ham United launch shirt auction in aid of Mexican earthquake relief

Fri 22nd Sep 2017 | Money & Finance

West Ham United will auction all match-worn shirts from this weekend’s London derby against Tottenham Hotspur , with all proceeds going to the victims’ families and survivors of this...

Stoke City success bringing benefits to region

Fri 22nd Sep 2017 | Money & Finance

Premier League football brought £130m to Stoke region and employed 2,200 people in one season, an EY study finds. The chance to play in the Premier League not only brings joy to fans of a club...

Manchester United Post Record Revenue Of 581m

Thu 21st Sep 2017 | Money & Finance

Manchester United has followed a successful year on the pitch with a successful year in business posting record revenues for the year ending 30 th June 2017. In a season which saw the club, under the...

30 September: the other deadline day

Mon 18th Sep 2017 | Money & Finance

As of 30 September 2017, all football clubs, sports agencies and their intermediaries will fall within the remit of the Criminal Finances Act. Through this Act, criminal sanctions can be imposed on...