United flotation 'may lead to sale'
Glazer family apply for Manchester United to be listed in the US
Manchester United's proposed flotation on the New York Stock Exchange could be a precursor to the club's eventual sale, according to a financial expert.
United have applied to be listed in the US in the hope of raising US dollars 100 million (£64million) from selling shares in the club. But while the Glazer family have structured the plan to ensure they retain priority voting rights over any new investors it could ultimately open the door to the Americans relinquishing control.
"Most clubs are available at a price if the truth be told," Karish Andrews, senior associate in the Sports Group at Lewis Silkin LLP, told Press Association Sport.
"There is only possibly Manchester City and Chelsea where there is no amount of money when the owners would be inclined to sell."
Andrews believes the decision to list on the New York Stock Exchange is finally an admission by Malcolm Glazer that he saddled the club with too much debt.
Proceeds from the sale will go to pay off an unspecified portion of United's £423million debts which were loaded on to the club when the Glazers bought it in 2005. Interest payments and associated costs on those loans have amounted to more than £500million in interest.
"It is an admission by the Glazers," said Andrews of the decision to float the club after a similar plan in Singapore last year was halted because of the volatile global economy.
"They have always not taken responsibility for admitting their takeover saddled the club with debt and massive interest payments. From what I have seen in the risk factors they have admitted that has been the case."
Andrews said supporters, who have been opposed to the way the club's debts have risen since the takeover, should welcome the latest move.
"I think Manchester United fans will appreciate that the Glazers have come clean and admitted that has been an issue for the club," he said. "I think they should see it as a positive step. They (the club) have said the sole purpose of raising the money is to pay off the debt simply because of high interest payments."
related stories on msn
very board of reading all the man utd haters comments on every thread on msn :(
I just want the the title back,we cant have City keeping it, Chelsea will want a closer look at it,Arsenal will be up there as usual, Spurs : sorry lads but keep plugging away, Liverpool : should finish in top 7.
At the end of the day anything - Football Club, Classic car, antique, property of any kind, is worth what someone is prepared to pay for it. With United's debt levels and interest payments you'd be getting a lousy return if you paid £1.43billion for them. But unless you're the Glazers or Arsenal's directors, that doesn't seem to be why people buy football clubs so maybe its irrelevant
And as Duncan Drasdo said, why anyone would want to invest in shares that have lnferior voting rights and paid no dividends is beyond me. This looks like a device to get someone else to reduce the level of interest so the Glazers can pay themselves more. Another Glazers win, United loses move.
I wonder when Cayman Island etc. holding companies will become publicly immoral, they are not illegal (just like manipulating rates is not illegal) just a way of generating more money (just like playing with interest rates) by paying less money in tax. Is this right?
will you be debt free then if the glazers raise 64 million ,thought the debt was 578 million ?
most of this money they hope to raise will end up in the hands of the Glazer familey . they would say they are owed the money but in truth they have never used a penny of the own to buy united.
all they do is get mutc into a bigger hole . they dont give a s--t as long as they can cream off millions every year, they are jewish bankers and thats what they do..
according to uniteds accounts their debt stood at 578 million ,and with the glazers latest money reducing wheeze will shift the debt to just over half a billion ,,but is it reducing the debt ,,or just putting it into the hands of some other investors to massage the figures ,
when a club goes chasing the doller as united have for more than 20 years now ,theres always a chance it can go wrong and with the glazers in charge its not looking to good
United may be good at winning Trophies, but they are better at feathering the nest of the owners at the tax payers expense. But thats not new at Utd as the former chairman and Butcher chain owner was found to be payin only £10 per year tax.
Disgraceful MAN UTD absolutely DISGRACEFUL.
64 million wont even make a dent in what they owe . there just silp a chunk of it in there jew back pockets and look for the next payday
well said lee. :D
but you know its falling on deaf ears. cant teach some people nothing.
And if that doesn't work, go for the Japan stock exchange.
Failing that there is good old Aus.
not really your jealousy speaks volumes.....sad has beens and never was