Glazers To Ride Off Into Sunset

Manchester United soccer club is said to be chasing so many new players that it’s hard to see where the money will come from, especially when its American owners appear to be planning an extra strategy.

The consensus among the UK media is that the Glazer family, which paid £800 million for the club in 2005, is looking to restore it to public ownership by floating it on the Hong Kong stock exchange.

The Glazers used such highly leveraged loans to buy the club that a year ago it still owed £730 million, which was costing £45 million per annum in interest payments.

But The Sunday Times and others reckon a Hong Kong float could raise about £1.7 billion, leaving the Glazers to ride off into the sunset with a fat capital gain.

Last year United turned over £286 million and had an operating profit of £91 million, but loan repayments and interest turned that into a £79 million loss.

A float appears to be the Glazers best way of getting out, given that they’ve already knocked back an approach from the Qatari royal family.

If the Glazers want out it may also encourage the Red Knights, a group of wealthy United fans who last year tried to make a £1 billion takeover, to renew their interest.