The Economics of Football...part whatever

purch

Manchester United sets IPO terms

(Reuters) - English football team Manchester United set the terms for its U.S. initial public offering on Monday saying it will offer 16.67 million shares at between $16 and $20 each, which values the club at $3.3 billion at the top of the range.

This couldn't be made up. :eek:

Man Utd were a listed company of the LSE until the Glazers bought them with borrowed money, and now they are seeking a listing on the NYSE, offering 10% of the club to raise over $300 million to repay some of the debts taken on in order to de-list them in the first place.

In 2005 the Glazers paid just under £800 million for United which was $ 1.47 Billion at the exchange rate in those days.


http://uk.reuters.com/article/2012/07/31/uk-manchesterunited-ipo-idUKBRE86T1BN20120731

Wookster

I wander how long it is before someone like Rooney puts his foot in it and breaks some sort of US regulation.

FTBFun

Wookster wrote: »

I wander how long it is before someone like Rooney puts his foot in it and breaks some sort of US regulation.

Rooney's opinions on the monetisation of the Glazer's investment are the first thing that came to mind here.

Thrugelmir

Explains the lack of big money signings so far....

Though the new wage caps are obviously having an impact.

vivatifosi

What does this mean for the Bucs purch? Is it good news as far as you are concerned?

Generali

purch wrote: »

Manchester United sets IPO terms

(Reuters) - English football team Manchester United set the terms for its U.S. initial public offering on Monday saying it will offer 16.67 million shares at between $16 and $20 each, which values the club at $3.3 billion at the top of the range.

This couldn't be made up. :eek:

Man Utd were a listed company of the LSE until the Glazers bought them with borrowed money, and now they are seeking a listing on the NYSE, offering 10% of the club to raise over $300 million to repay some of the debts taken on in order to de-list them in the first place.

In 2005 the Glazers paid just under £800 million for United which was $ 1.47 Billion at the exchange rate in those days.


http://uk.reuters.com/article/2012/07/31/uk-manchesterunited-ipo-idUKBRE86T1BN20120731

This appears to be a fully underwritten offering so they will get pretty much all of the money that is planned to be raised unless the IPO is pulled at the last minute.

It's a nice result for the Glazers although probably not entirely unexpected as season ticket prices are up 20% (?) and TV money has gone through the roof. I never saw the resolution but the story was that the foreign rights package was going to go for a lot more than previously.

The upside for shareholders would be that there is the potential for a Scotland/Spain-style split where the chosen few get the majority of the pie or perhaps that the G18 or whatever they are called now of the big European clubs will give UEFA and the rest of soccer a cheery FOAD and form a SuperDuper League.

spadoosh

I dont get it, things dont look like theyre adding up. Not too clever with shares though if someone could explain.

1. Reuters says its selling 16.67 million shares, which is the whole of the club so guessing theyre not actually selling 16.67 million shares more like 1.667 million shares to raise the 300 million?

2. if thats not the case and they are selling the whole club, then surely the glazers won't be in charge anymore, i cant see them doing that?!?!

So whats going on? Layman terms please!

kabayiri

Americans and Soccer.

It's like Grange Hill and drugs.

"Just say no".

Generali

spadoosh wrote: »

I dont get it, things dont look like theyre adding up. Not too clever with shares though if someone could explain.

1. Reuters says its selling 16.67 million shares, which is the whole of the club so guessing theyre not actually selling 16.67 million shares more like 1.667 million shares to raise the 300 million?

2. if thats not the case and they are selling the whole club, then surely the glazers won't be in charge anymore, i cant see them doing that?!?!

So whats going on? Layman terms please!

I can only find the preliminary prospectus so far:

http://www.sec.gov/Archives/edgar/data/1549107/000104746912007026/a2210109zf-1.htm#cc71301_the_offering

They are splitting the ownership of the company that owns Man Utd, Manchester United (Caymen) Ltd into 2 groups. Public shareholders that will own x% of the A shares and investors in Red Football LLC will own 100-x% of the A shares and 100% of the B shares.

When it comes to deciding stuff like who is going to have a place on the board, 1 B share has 10 votes vs 1 A share although they each own the same proportion of the company.

x I understand will be 10.

spadoosh

With each share still getting the same dividend?!

chewmylegoff

quite why anyone would want to hold a share in a listed company when the directors will control 99.1% of the voting rights is beyond me.