Red Sox Willing To Go Over Luxury Tax Threshold Hurricanes Seeing Smaller Crowds So Far Orlando City's Rawlins Still A Fan First Franchise Notes Red Sox Spend Big With Ramirez, Sandoval Bills Say Stadium Will Be Ready For Sunday AHL Checkers Likely To Leave Hornets' Arena NFL Franchise Notes Bills Plan To Practice, Play In Buffalo This Week Rockies Brass Conducts Twitter Q&A With Fans
SBD/August 18, 2011/Franchises
Is Floating ManU On Singapore Stock Exchange A Good Idea For Glazers?
Published August 18, 2011
The Glazer family's plan to "raise a large sum of money" by floating Manchester United on the Singapore Stock Exchange "is not a guaranteed winner," according to David Bond of the BBC. The EPL club's global commercial strategy "has been a huge success," and the latest plan "looks like a no-brainer" for the Glazers. Selling 25-30% of ManU would "not only potentially help reduce the bond the Glazers took out in January 2010 but pay down any other private debts" they have. But whatever valuation the IPO "places on the club, once traded the share price will be subject to the forces and whims of the market." ManU's share price "could plummet if huge numbers of shares are dumped by speculators after the float or stock markets are rocked by another round of global slumps." Also, by making "such a large chunk of the share capital available to the open market, are the Glazers risking one or two large shareholders buying big stakes in the club?" Bond wrote the "final potential drawback for the Glazers comes with the disclosure requirements associated with listing on a stock market” (BBC.co.uk, 8/17).
STRIKING BACK: EPL club Everton FC Chair Bill Kenwright “has reacted to criticism from fans by pointing out that the club’s inability to borrow any money from their bank is to blame for their lack of transfer activity.” Kenwright: “There are two things: one, the world is in a recession and I don’t know any business that isn’t suffering at the moment, and I include football in that, other than the financial elite. And two, we’ve come to a stage with our bank with our finance where we just can’t borrow any more. ... The banks are tightening in now. We just can’t borrow any more money” (GUARDIAN.co.uk, 8/18).