Manchester United owners eye £1.7 billion Hong Kong float

By David Gold

June 15 – Manchester United could be floated on the Hong Kong stock market in a move which has been cautiously welcomed by the Manchester United Supporters Trust.

A flotation could provide a dignified exit strategy for the Glazers, the family who own United but have remained unpopular despite the club’s success in recent years.

The proposed flotation would value the club at about £1.7 billion ($2.7 billion), which would enable the Glazers to make a profit on the initial leveraged investment they made of £790 million ($1.3 billion).

The move could also see United’s debts, which are approximately £500 million ($811 million), reduced, and the Glazers may seek to retain a small shareholding.

Despite consistently posting revenues in excess of £200 million ($324 million), the debts incurred by the Glazer family when they took over the club in 2005 mean that United posted losses of £80 million ($130 million) last year after interest payments.

And last year Forbes estimated that Manchester United were the second most valuable sports brand in the world behind the New York Yankees, demonstrating the commercial potential of a flotation to reduce the club’s debts.

The choice of floating the club on the Hong Kong stock market could be shrewd as United are particularly popular in the Far East.

A spokesman for the Manchester United Supporters Trust said: “The prospect of a flotation of Manchester United is one that many supporters would cautiously welcome because it could be an opportunity for supporters to once again share in ownership of their club.

“However three immediate concerns spring to mind.

“Firstly, that this would have to be a full IPO (Initial Public Offering) signalling a clean exit for the Glazers.

“Secondly, the valuation would have to be realistic – something closer to £1 billion ($1.6 billion), rather than the £1.5 billion ($2.4 billion) plus that the Glazers seem to feel is possible.

“Thirdly shares should be freely available to all MUFC supporters and certainly floated on the UK market to maximise accessibility.

“Of course many supporters would hate to see the Glazers walk away with a huge profit but in the end it isn’t about them.

“It is about what is best for Manchester United – the football club and its supporters.

“Until their drain on our finances is removed we will never be able to compete on a level playing field with the best in the world.”

Contact the writer of this story at zib.l1734837731labto1734837731ofdlr1734837731owedi1734837731sni@d1734837731log.d1734837731ivad1734837731