Manchester United file to list on New York Stock Exchange

Manchester United

Premier League giants Manchester United have applied to list on the US stock market in a bid to raise £64 million from selling shares in the club.

The Red Devils are currently saddled by £423 million worth of debt following the takeover of American millionaires the Glazer family, who controversially took control of the club despite supporter protests in May 2005, and have now acted in an attempt to pay back a portion of that figure.

It’s reported that the Glazers’ takeover has cost United more than £500 million in interest, bank charges and fees – and with that sum set to rise considerably there are fears that the huge debt repayments could negatively affect the team’s competitiveness in the transfer market and, subsequently, the Premier League.

"We intend to use all of our net proceeds from this offering to reduce our indebtedness,” a document filed with the Securities and Exchange Commission stated.

The Glazers had explored the possibility of floating the club on the Singapore stock market in 2011, but backed out of the move due to the volatile global economy.

The move to list the club on the New York Stock Exchange will see the team become a subsidiary of Manchester United Ltd, a new holding company based in the Cayman Islands.

However, the Glazers will remain in control, with the family retaining all ‘Class B’ shares – which give the Americans 10 times as much voting power on the board, as opposed to the available ‘Class A’ shares.

As a result, it’s unclear how popular the available shares will prove when the sale takes place later this year, but Manchester United are confident that the popularity and profitability of football around the world guarantees an attractive investment for potential buyers.

"Our 134-year history, our success and the global popularity of our sport have enabled us to become what we believe to be one of the world's most recognizable brands,” the document states. “We enjoy the support of our global community of 659 million followers.

“The composition of our follower base is far-reaching and diverse, transcending cultures, geographies, languages and socio-demographic groups, and we believe the strength of our brand goes beyond the world of sports.”

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