Glazers in line for £87m United windfall after share sale
THE owners of Manchester United, the Glazer family, are taking advantage of the recent improvement in the company’s shares price by selling another tranche of shares.
The Florida based Glazers are set to collect nearly £89m ($150m) by selling eight million shares in the club on the New York Stock Exchange.
The sale represents around 5% of the stock and will not impact the family’s control of the club. Once the shares are sold, the six children of the late Malcolm Glazer will still own more than 80% of United.
None of the proceeds will go to the club itself, a fact that is likely to annoy some fans who have long campaigned against the Glazers, who they accuse of burdening United with excess levels of debt following their £790m takeover in 2005.
The deal comes two months after Malcolm Glazer died. His six grown children control the club. The latest share sale was announced on a day when United shares closed at $19.31 having been listed at $14 per share on Wall Street two years ago.
For the criticsm the Glazers have attracted, they have presided over an era of dramatic commercial success, highlighted by the recent world record 10 years deal with adidas worth at least £750m.
United disclosed to potential investors in the new share prospectus that failure to play in the Champions League for two or more consecutive seasons would see the annual Adidas payments drop from that second year by 30% from £75m to £52.5m.
The prospectus added: “‘Our success and many achievements over the last 20 years does not necessarily mean that we will continue to be successful in the future, whether as a result of changes in player personnel, coaching staff or otherwise. A downturn in the performance of our first team could adversely affect our ability to attract and retain coaches and players.”
