MANCHESTER UNITED has confirmed plans to raise up to $300 million by selling some of its shares – but the heavily indebted club will only get to keep around half of the proceeds.
Documents filed with the Securities and Exchange Commission in the United States show that the club is to sell at least 16,666,667 shares, priced between $16 and $20 each – meaning at the very least, the club would raise $266 million (€217m, £170m).
A further pool of 2.5 million shares has been set aside in case of extra demand – meaning, if the total pool was sold at the higher end of the pricing window, the club could be in line to raise $383 million (€312m, £244m).
However, half of the original pool of shares being put up for sale are to be taken from the existing shares of the Glazer family, which controversially took over the club in May 2005 in a purchase largely funded by loans which were then transferred onto the club itself.
That purchase was opposed by a significant proportion of the club’s fans, who objected to the club being saddled with debt when it had been debt-free for most of its time as a publicly traded company. It was first floated in 1990.
A spokesman for the Manchester United Supporters Trust (MUST), which has continually campaigned for the club to be transferred to fan ownership, said the Glazer family had already cost the club £550 million in fees related to the debts they had transferred.
The trust had hoped that the cash raised from the flotation would be used to pay down the club’s remaining debt, which stood at £423 million in the last accounts published in May.
“Clearly this has nothing to do with benefits for Manchester United and is all about giving the Glazers quick access to desperately needed cash at the expense of our football club,” a spokesman said.
“What is the sudden reason for this desperation for cash now?”
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