Manchester United to raise £210 million from New York flotation

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By David Gold

July 31 – Manchester United has announced its intention to raise £210 million ($330 million/€269 million) from its flotation on the New York Stock Exchange.

The English Premier League club will use the money raised from the flotation to repay some of the debt accrued by their owners, the Glazers (pictured below), when they bought United in 2005.

Despite being the world’s most valuable club, as well as running a hugely profitable operation, United still have more than £400 million ($628 million /€511 million) in debt from the takeover seven years’ ago.

The club were affected last year by their failure to qualify for the second round of the Champions League, and their subsequent Europa League exit.

That dented the usual broadcast and prize money they would enjoy from UEFA’s coffers.

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However, unlike some of their rivals, primarily Manchester City and Chelsea, United should have little trouble complying with the new UEFA Financial Fair Play regulations.

There has been criticism from supporters that the shares to be sold will be far less significant in voting power to those the Glazer family hold.

United will make 16.7 million shares available at between $16 (£10 /€13) and $20 (£13/€16) each.

The club have also announced a new shirt sponsorship deal with United States car giant Chevrolet, in a deal lasting for seven years, although the value of the partnership has not been disclosed.

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Chevrolet will take the place of Aon on the front of United’s shirt from the 2014-2015 season.

The announcement follows a five-year deal signed to use Chevrolet cars earlier this year.

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