Glazers Promise To Clear Debt With Stock Listing

Glazers Promise To Clear Debt With Stock Listing 20/08/2011

Manchester United plan Singapore Stock Exchange flotation

The Glazer Family have told the Singapore Stock Exchange that they will reduce Manchester United's debt, after they applied to be listed on the market. The Reds will see a partial share flotation, with proceeds of over £600 Million targeted, which could clear the club's debt...

The Red Devils are currently crippled with over £500 Million debt, after The Glazers took over the world's biggest club in 2005. Although the American owners do not own United outright, they are in control of our finances due to their status as majority shareholders. Putting £610 Million worth of shares available on the Singapore market (SGX) would see about 25% of The Glazer's stake vanish, which is likely to lead to a full-scale exit from Old Trafford.

The unpopular Yanks value the Premier League Champions at approx. £2 Billion, and selling in quarters like they are plotting to do in Asia, only puts the club's worth further up the ladder. Once the Initial Public Offering (IPO) is underway by late 2011, that could lead to The Glazers planning to sell their remaining 75% stock. Another flotation is one of many options, Qatar's Royal Family and The Red Knights may aim to raise money for a direct purchase also.

The Independent Manchester United Supporters Trust (MUST) will set-up a scheme whereby supporters can buy their own slice of United from the Singapore sale, and will also push for an ultimate fan-owned club. When applying for the listing this week, The Glazers promised that they will cut the loan repayments owed by the club, which have been totted-up over 6 years since Malcolm Glazer's £800 Million Leveraged Buyout (LBO) back in the boom days.

Morgan Stanley, JPMorgan Chase, Credit Suisse, BOC International, Malaysia CIMB, Singapore DBS and Credit Agricole CLSA have been employed by the owners to secure £610 Million ($1 Billion) in share sales, which could take anywhere between 5 months to 2 years for that total to be reached. As yet, United nor Glazer Family spokespersons have opened their mouths on reports, by Thompson Reuters (IFR), Associated Press and Bloomberg.

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Comments

Moffballs

20/08/2011 4:47pm

Surely this can only be a good thing for united....

Ross

20/08/2011 5:08pm

hurry up & get us debt free so we won't miss out on marquee signings & man shitee overtake us as best club in Manchester......

True Red

20/08/2011 5:17pm

How long will it actually take to clear all the debts ???

Hamburgerop

20/08/2011 5:27pm

600 million pounds - 25%. U mean mufc is worth 2.4 billion pounds? I thought it's nearer to 1.5

ChrisW

20/08/2011 6:00pm

We aren't "crippled" with debt, that's nonsense. Just look at our spending this summer, look at the money in the bank.

If the whole of United was floated the debt would be gone but we'd be paying dividends instead of debt interest. Quite possibly we'd be no better off, especially considering that you get tax relief on debt payment but not on dividend payments.

I suspect the Glazers will pay off some of the debt and pocket the rest of the money raised by the flotation for themselves. And that what we save on debt interest we lose on dividend payments.

United-Latest link

20/08/2011 6:39pm

@ 'Hamburgerop'

Using that valuation, we are actually worth more than £2.4 Billion, but as it says in the article 'selling in quarters like they are plotting to do in Asia, only puts the club's worth further up the ladder'. That does not give the real picture.

@ 'ChrisW'

I suppose we are not 'crippled' in functioning, but we are on the financial side of things. Our amazing income makes up for though.

Malc's dribble bib

20/08/2011 10:53pm

A couple of points - the glazers aren't 'majority shareholders ' - they delisted the company from the LSE years ago and as such are private owners.

Secondly, Chris W - don't talk nonsense. Of course United are crippled by debt. 'Money in the bank' means nothing when you owe £500 million. As for your 'look at our spending' this is all effectively borrowed money, and don't forget how much the wage bill has reduced with scholes, neville, VDS, brown, o'shea, bebe, and obertan leaving.

Mikey

20/08/2011 10:56pm

Stupid cunts shudnt have bought if they didnt have enough money roll on united v spurs nani n rooney 2 0 utd!!

Mikeyy

20/08/2011 11:10pm

Match ov da day.. Young lad from everton (forgot his name bit drunk) 17 years ov age reminded me ov a young rooney wit passin n shootin wen he was young plays in mid very comfy on ball even tho the opposition may not have been the best(QPR)a lad to keep an eye on maybe man u can get anuva gem of everton!!(think his name begins wit a B)

Mikeyy

20/08/2011 11:36pm

Mack....bebe is on loan so ther for we are still payon his wages even tho they will not be to high im sure..still in big debt of the cunts even if them players have retired dat u mentioned

Winston

21/08/2011 12:54am

I don't go to Old Trafford anyway, so ticket prices mean nothing to me. I'm just glad that they give us the funds to sign top players like Nani, Valencia, Hernandez, Smalling and maybe even Sneijder or Nasri to come.

Love United

21/08/2011 1:02am

The whistle protest at the last home game in 2010 was a disgrace. The atmosphere was eerie that day. Such a shame for the players who deserved our appreciation after their hard work over the season.

Anyway, I didn't see any green and gold protest last season, surprise surprise! Strange how we only see protests when the team isn't winning. You didn't hear a peep between '06 and '09 when we were dominant. Then we sold Ronaldo and replaced him with Little Mikey Owen and suddenly everyone is anti-Glazer! Clowns. Then Sir Alex puts us right back on top of the league and gets us to YET ANOTHER CL final and where was the green and gold? Fairweather protesters. Probably almost as idiotic as the "protests" that started in Tottenham this month.

Jack

21/08/2011 12:10pm

i would be shocked if they cleared all the debts but if they can get us below £100m, then that would be workable.

cos lets be honest, without this dreadful debts they havent been the worst owners in the world.

they leave fergie to look after the football, he seems to get cash but again its hard to know the truth.
they keep to themselves and they did improve revenue.

of course the debt is a killer but if they dont pocket this IPO money and end it then there are worse guys to have incharge.

some dont like the ticket hikes and i agree its not great but the fact is people are willing to pay that much and other clubs charge more.

i am not a supporter of theres but if you look at the comments some owners make, the way they try and interfere in footballing matters, then it could be worse.

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