Man United Reveal share price details

Manchester United Reveal Share Price Details


The club lifts the lid on its debut on the New York Stock Exchange - but it is valued much lower than expected.


8:28am UK, Friday 10 August 2012



Video: Utd Share Price Lower Than Expected
Enlarge

The number of Manchester United supporters across the
world in 2011





AmericasEuropeMiddle East &
Afric
aAsia PacificTotal

0m

140m

280m

420m

560m

700m

71m90m173m325m659m

FusionCharts

Kantar Market Research

Graph: Manchester United's Global Fans


Shares in Manchester United are to float on the New York Stock Exchange later - but they are not expected to raise as much money for the club as hoped.

The $14 (£11) opening price for the football club has been set significantly below expectations and would see $233.2m (£149.1m) raised from the sale of 16.7 million shares, about $100m less than predicted.

The price, which is lower than the $16 to $20 the club had been hoping for, leaves the club valued at $2.3bn (£1.5bn) - much lower than the up to $3.3bn (£2.6bn) the club and its owners, the Glazer family, were expecting.

The US-based family failed to garner sufficient demand in previous efforts to sell shares on Asian exchanges in Hong Kong and Singapore, where the team garners huge support.

Analysts at data provider Morningstar earlier told the Financial Times that $10 per share would be a fair value, adding: "Shares could trade at a significant premium to our fair value estimate if the market values the soccer team in line with other successful sports franchises."

Proceeds from the initial public offering (IPO) will be used to pay down some of the 134-year-old club's debt, which was last reported at more than £400m.

Although the listing has been planned for some time, the Glazer family originally claimed all the proceeds would go towards United's debt, angering fans.

A successful IPO would reportedly result in investors owning 42% of the shares available but only carrying voting rights of 1.3%.

Earlier this month, a leading Manchester United fans' group called for a boycott of the club's expanding portfolio of sponsors in protest at the planned flotation.

A statement from the Manchester United Supporters Trust (MUST) read: "The Manchester United Supporters Trust has today called for a worldwide boycott of Manchester United sponsors' products, with support across the UK, Europe, Asia and the US.

"The boycott strategy is intended to send a loud and clear message to the Glazer family and club sponsors that, without the support and purchasing power of the fans, the global strength of the Manchester United brand doesn't actually exist."

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Apparently, The Glazer Brothers are to split the money from the sale of shares , half to pay off some of the debt and

half for them . They will also retain control of the Club. Fans are furious , but that's what you get for having Foreign

owners . Time to put a limit on all these overpaid Football Players and purchases of Foreign players. Bring back training

of youngsters . Arsenal is also highly indebted.....watch this space.