Features
Glazers Look East For Man U Cash
The Florida-based Glazer family may be about to generate six times its original investment in Manchester United by floating the soccer club on an Asian stock market.
Some analysts reckon that a deal to sell 25 percent of the stock on the Singapore exchange would value the club at £2.4 billion. Others say that’s too high for a business that’s burdened with debt to the point that all of its annual profit goes toward interest payments.
The Glazers, who also own the NFL’s Tampa Bay Buccaneers, put up £300 million of their own money to buy Manchester Utd. in 2005.
The rest of the £900 million needed for the highly leveraged takeover was borrowed from banks and various hedge funds.
If the Singapore float did value the club as high as £2.4 billion, then the Glazers would get £600 million – some of which would be used to cut debts – and still hang on to a 75 percent stake worth £1.8 billion.
It’s not a move that’s likely to endear the Glazers to Manchester United fans who are opposed to the way they’ve bought and run the club.
Last year a group of United fans calling themselves “The Red Knights” failed with a £1 billion bid to seize control.