Manchester United on the US stock market
- Thread starter Robbo
- Start date
I think everybody is aware that they're only in it for the money and that they'll sell at the right price/time however I don't think the IPO is part of any exit strategy. I think that within reason it has been forced upon them. With the likes of Chelsea and City around, the level of debt is effecting your ability to compete and your ability to compete at the top of the League and CL is crucial to their business plan.
That's a yes to not understanding then
I understand perfectly thank you very much
Its an american legal document - things like that have to be stated whether its a serious issue or not (like Terrorism/ Flooding / War etc)
Investors that are generally interested in IPO's (ie big business that invest millions /billions every year) will have known this without it being explicitly spelt out anyway. It makes no difference at all
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The IPO was reported to raise $1bn.....the Glazers are hoping to do the same with the NYSE IPO despite the Pro Forma.
Whether they would have or will raise that amount, or will use it to pay down the total debt is by and large immaterial to the potential that they could have.
In any event, it was not a lolworthy statement and didn't deserve to be treated with such distain.
The reported valuations are from Forbes, not from the IPOs themselves..they had not gotten to that point in the process.
Soldato
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Cayman Utd
That is fair to say, which is why I was careful to point out the potential rather than the intention.
Yeah that's why my next line was 'That's never going to happen obviously'
But with everything combined I think it's best for the fans that this is the start of the end, hopefully the next bunch aren't so awful.
Without being rude, you don't.
Please can someone explain to me, by putting United on the stock market, doesn't that mean the Glazers are thereby giving up a percentage of ownership for money?
Will these new investors have voting rights? Doesn't that also mean they will also get or potentially demand dividends? What is it that this IPO can offer these investors & the club (besides lowering debt)?
Also if I may ask anyone with knowledge in these matters, what was the bond issue about, what is the difference between bond issuing / floating, and what benefit did it offer the club & the people who bought those bonds.
Thanks!
Will these new investors have voting rights? Doesn't that also mean they will also get or potentially demand dividends? What is it that this IPO can offer these investors & the club (besides lowering debt)?
Also if I may ask anyone with knowledge in these matters, what was the bond issue about, what is the difference between bond issuing / floating, and what benefit did it offer the club & the people who bought those bonds.
Thanks!
Please can someone explain to me, by putting United on the stock market, doesn't that mean the Glazers are thereby giving up a percentage of ownership for money?
Will these new investors have voting rights? Doesn't that also mean they will also get or potentially demand dividends? What is it that this IPO can offer these investors & the club (besides lowering debt)?
Also if I may ask anyone with knowledge in these matters, what was the bond issue about, what is the difference between bond issuing / floating, and what benefit did it offer the club & the people who bought those bonds.
Thanks!
They're selling off a % of the club and using that money to pay off some of the debt on the club. They could have used that money for anything they pleased but it's confirmed that the money will be used to pay off debt.
The shares are split into A and B shares with the Glazers keeping all the B shares and each B share having 10 times the voting rights of an A share. So yes they'll have some voting rights but they may as well not.
The document says that there's no intention to pay out dividends but that could change.
As for what the IPO offers the investors; if the share prices goes up then they can sell at a profit. And what it offers Utd; it raises equity to pay off some of the clubs debt.
And finally the bond issue; that simply replaced the bank debt attached to the takeover. The main reason for replacing the bank debt with the bond issue was to give the Glazers more freedom to do as they please with the club and its money (for example, the banks had to be paid back before the Glazers took any money out of the club).
Hope that helps.
Please can someone explain to me, by putting United on the stock market, doesn't that mean the Glazers are thereby giving up a percentage of ownership for money?
Will these new investors have voting rights? Doesn't that also mean they will also get or potentially demand dividends? What is it that this IPO can offer these investors & the club (besides lowering debt)?
Also if I may ask anyone with knowledge in these matters, what was the bond issue about, what is the difference between bond issuing / floating, and what benefit did it offer the club & the people who bought those bonds.
Thanks!
They have only released a small amount of shares to ensure they retain their controlling interest. The bond was a quick way to raise £x at a fixed rate of repayment and interest.
The Share issue or IPO is more volatile. There is a value to the club, company and assets etc so if the club is worth £x and you have 100,000 shares then it's pretty easy to see what the value of the shares are but there are no guarantees that the shares will then perform at the level that the investors anticipated.
In my opinion the IPO is dangerous because without re finanincing again, what will the $100m do. This time next year we will still have to pay the interest on the debt plus an amount of any profit to the shareholders. $100m is a very short term fix (in my humble opninion)
Yes they're giving a percentage of the club away but not control. Apparently this is a Class A share issue, the Glazers retain control of all of the class B shares. Class A shares will have voting rights but 10 class A shares only gets the same vote weighting as one Class B share vote. It's a dual ownership structure which is more common in America than Europe.
Class A shares can attract dividends but the Sec document states that we do not forsee dividends being paid in the near future and it is at the sole discretion of the directors. Realistically you would expect to pay dividends at some point though. If you buy a share in the IPO (not going to happen realistically) you could attend the AGM the clubs will need to hold and could ask questions of the directors.
Class A shares can attract dividends but the Sec document states that we do not forsee dividends being paid in the near future and it is at the sole discretion of the directors. Realistically you would expect to pay dividends at some point though. If you buy a share in the IPO (not going to happen realistically) you could attend the AGM the clubs will need to hold and could ask questions of the directors.
Associate
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Is there any particular reason you would float it on the NYSE vs say, the London (or any other stock exchange)? Do they think they will make more out of the American one?