Glazers to share fruits of United’s $383m float
THE Glazer family, the controversial owners of Manchester United, will share in the proceeds of the flotation of the company in New York, it has emerged.
Original documents filed in the US revealed that most of the funds raised would be used to pay down debt, but a prospectus filed on Monday night reveals that of the $383m to be raised, a significant proportion will go to the Florida-based family as selling shareholder of 8.3 million shares.
Fans’ groups already angry that the Glazers’ leveraged acquisition of the business shouldered it with debt, were further enraged by the latest development, arguing that just £75m from the IPO will be used to pay off debt, leaving £350m still owing.
Duncan Drasdo, chief executive of the Manchester United Supporters Trust said: “Supporters are going to be very angry about this. The Glazers have already cost United more than £550m in debt related fees and now another slap in the face as they help themselves to half of the proposed IPO proceeds.
“Each of the six lineal descendants of Malcolm Glazer will claw out $25m for themselves.”
Mr Drasdo added: “There is now no doubt that this IPO is bad for Manchester United supporters, Manchester United Football Club and any investors gullible enough to pay the inflated price they’ve attached to inferior shares which have just 1/10 of the voting rights of the Glazers shares and no dividends.
“Their bare faced cheek is almost unbelievable.”
Up to 19.1m shares will be offered at a price of up to $20 each, the documents filed with US regulators show.
Manchester United the corporate entity is selling 8.3 million shares and the Glazers 8.3m too. The company will not receive the proceeds of what the Glazers make though, the prospectus states.
The IPO – which will also see the Glazers retain complete control of the business – had been expected to happen in Singapore but was pulled amid turbulent market conditions.
The prospectus says the club’s ebitda will be lower this year after the early exit from the UEFA Champions League this year, compared to 2011 when the team reached the final of the ultra-lucrative competition.
Adjusted ebitda will be approximately £90m to £92m representing a decrease of 18% to 16% when compared to £109.7m for the year ended June 30 2011.
The prospectus was filed hours after United unveiled a new seven-year shiort sponsorship deal with General Motors’ Chevrolet brand .
