Glazers ‘mulling £1.7bn Hong Kong float’
THE Glazer family, the owners of Manchester United, are planning to list the club on the Hong Kong stock exchange, according to weekend reports.
The Sunday Times said the Florida-based Glazers, are keen to return the business to the public markets and a value of £1.7bn – more than double the £790m they paid in a leveraged buyout in 2005 – has been mooted.
Sources told the newspaper that talks are at an early stage and that the Glazers would assess how successful the forthcoming £10bn flotation of Italian fashion business Prada was before deciding whether to press ahead with the plan.
Last year the holding company behind the club – which has just won its 19th league title – reported losses of nearly £80m after interest payments.
United has a huge following in Asia and analysts say there would an enormous appetite for the shares in the event of an IPO.
Supporter groups, who have been vociferously opposed to the Glazers’ business model since the takeover, reacted positively to the reports.
Duncan Drasdo, chief executive if the Manchester United Shareholders’ Trust said many fans would “cautiously welcome” the opportunity to share in the ownership of the club.
He said fans would look for three key issues to be addressed: “Firstly that this would have to be a full IPO signalling a clean exit for the Glazers.
“Secondly the valuation would have to be realistic – something closer to £1bn rather than the £1.5bn-plus that the Glazers seem to feel is possible. Thirdly shares should be freely available to all MUFC supporters and certainly floated on the UK market to maximise accessibility.”
“Of course many supporters would hate to see the Glazers walk away with a huge profit but in the end it isn’t about them. It is about what is best for Manchester United – the Football Club and its supporters. Until their drain on our finances is removed we will never be able to compete on a level playing field with the best in the world.”
Despite being criticised for shouldering a hitherto debt-free business with high borrowings, the Glazers have presided over continued success on the field and impressive commercial revenue growth.
