Paul Nicholson
August 1 – The Glazer family are selling just under 5% of their shareholding in Manchester United. The sale of the eight million shares on the New York Stock Exchange (NYSE) will realise about $150 million for the family.
While the Glazer shareholding will be reduced, they will still have majority control of the club owning more than 80% of the shares.
This is the second time the Glazers have sold shares, having sold 10% of their stock through the club’s initial public offering and listing on the NYSE in 2012. The money raised the was split between the Glazers and the club earning them about $100 million.
The Glazers acquired the club in 2005 after a series of share buys that cost about $1.3 billion, funded mostly through debt secured against other family assets. This left the club with an interest bill of about £60 million per annum. The loans have since been rescheduled reducing that bill.
The sale is good business for the Glazers, coming almost exactly two years after the market listing, as it means they will have taken out more than $250 million of cash from an investment which cost them very little cash in the first instance. And, of course, they still retain control.
While the club has struggled on the pitch following the departure of manager Sir Alex Ferguson a year ago, it has not struggled commercially with the brand sustaining its market value with sponsors.
New manager Louis Van Gaal has brought a renewed feeling of optimism to the club’s huge base of supporters and that optimism will likely feed through to investors considering buying shares.
On announcement of the sale, Manchester United shares closed the day at $19.31 per share, valuing the club at about $3.2 billion. A significant advancement on the $1.3 billion valuation of 2005.
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