United are looking to expand their global market even further as they make steps towards aquiring investors in Pakistan. The appeal of Manchester United is set to grow in the global market as the club plans an IPO float on the Singapore Stock Exchange.  The float has been delayed somewhat due to the unstable market economy of the moment.  However United are still finding ways to increase revenue and target ever more customers accross the globe. 

Here is a story from a Pakistani news outlet: nation.com.pk

KARACHI - Manchester United, a leading football club of England has signed a three-year deal with Zong, Pakistan's leading mobile telecom company that will give the Club's estimated 10 million fans in Pakistan a chance to see all the goals scored, as well as exclusive interviews, news and behind-the-scenes access.
Rizwan Akhter, Director Advertising and Promotions of Zong, said here Tuesday, "This partnership is one of a kind coming from Pakistan and the initiative that Zong has taken to team-up with Manchester United will only lead to prosperity, growth and triumph! For all the glory that is to come, we stand united, to take on all opportunities and victories together as one."
Chief Financial Officer of Zong, China Mobile Pakistan, Feng Tuixian said: "We see ourselves as an integral part of peoples' lives, providing support to over 12 million subscribers. We help them in their business or at work, bringing friends and families closer together, providing quality moments of leisure and recreation while remaining at the cutting edge of technology. We share Manchester United's commitment to be the best among competitors. I am sure this is the start of something very big indeed."
Commercial Director Richard Arnold of the club has said: "Zong is a great partner for United in Pakistan and partnering with Man United will give them high visibility as well as helping the club to communicate directly with millions of our supporters there."

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CEO of Forbes' magazines richest sports team is interviewed at Unicef campaign. VIDEO #mufc

Manchester United IPO would be 'beneficial', says CEO David Gill

The chief executive of Manchester United has said a potential flotation of the business would be "beneficial to the club" in his first public comments on plans for an IPO.

The chief executive of Manchester United has said a potential flotation of the business would be
Speaking on a trip to Senegal with Unicef, David Gill (left) told The Sunday Telegraph that the listing is "a potential" and the Glazer family, which owns the football club, will be "determining what the markets are telling us"

Manchester United were named as the richest football team this summer, topping the Forbes list of sports teams with 1.65 Billion GBP valuation.  This despite Abramovichs' murky millions which only saw Chelsea come 46th, while Bayern Munich (19th), AC Milan (34th) and Juventus (49th) also made appearances in the Forbes magazine annual Top 50 rich list.

United recently signed sponsorship deals with Aon and Nike worth around £380 million and have accumulated 333 million supporters across the globe.

Speaking on a trip to Senegal with Unicef, David Gill told The Sunday Telegraph that the listing "has potential" and the Glazer family, which owns the football club, will be "determining what the markets are telling us" amid rumours the IPO is on hold.

The Glazers are understood to be considering a flotation of a 25pc stake in the business worth up to $1bn (£643m) in Singapore.




















Mr Gill would not confirm the proposed terms of the IPO or whether it would be launched by the end of 2011 with global stock markets in turmoil.

However, he said: "It is not officially on hold but the owners will be taking appropriate advice from the advisers and determining what the markets are telling us.

"But I don't think it's the level of the market, it is the sheer volatility. That's the challenge."
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The United chief executive claims he is "not intimately involved in the process" and the IPO is a "decision for the owners".

He added: "I think the finances of the club are in robust health in terms of the bond interest against the EBITDA that we do have, so in that respect I am not concerned.

But it was an opportunity, and is a potential opportunity, to strengthen them even further. If the proceeds were by and large used to pay down the bond debt then that would take some of the interest costs out."

Mr Gill also played down the impact the IPO could have on the football club, despite the introduction of new shareholders from around the world who could press for dividend payments.

Interview by Graham Ruddick

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Marketing deal from Malaysian financiers comes ahead of IPO float on Singapore Stock Exchange. #mufc

 I've had a great week following United, the trip to Leeds was epic!  Apart from their fans chuckin' stuff at my head that is.  The atmosphere once inside the ground was fantastic and my throat has only just recovered from the singing.  I wish we could have continued the run into the Stoke game but yet more injuries ( Wayne Rooney and Chicharito) and an extremely dogged and physical performance from Stoke meant we could only get a point.
  Ah well, I'm off to Old Trafford on Tuesday for the Champions league match against Basel.  C'mon The Reds!

 The English Premier League has always been very big among Malaysians. Well established teams like Liverpool, Everton and Arsenal have their fans here, and let us not forget the ‘hottest’ team, Manchester United. Everyone loves a winner, and Malaysians are no exception. Manchester United has a near god like status here among Malaysian fans, so it is not surprising to find Malaysian brands linking up with English Premier League teams in terms of advertising.

The most recent addition to Malaysian advertisers in the English Premier league is none other than Mister Potato. Yes, the potato chip maker has decided to grab some publicity by tying in with Manchester United! But no, we won’t be seeing any jerseys with Mister Potato’s face on it anytime soon, the advertising will be on digital boards at Old Trafford, Manchester United's homeground.

The plan comes as the Premier League team plans an initial public offering in Singapore to raise $1 billion later this year, three people familiar with the IPO plans said last week. A stake of up to 30 percent may be sold, said one of the people. The club wants to cut financing costs and raise money that could be used for players. It spends about 45 million pounds ($74 million) a year to service a 500 million-pound bond.
The club, which Forbes magazine estimates is now worth $1.8 billion and Deloitte LLP says is the richest in revenue behind Real Madrid and Barcelona in a list published in February 2011, has about 190 million of its 330 million fans in Asia.

“The multitude of local events we run with global and local partners, and a prospective forthcoming tour of Asia in 2012, necessitate expanding our footprint both with people and office space,” Manchester United said in a statement earlier this month. “This is consistent with the huge appeal of Manchester United in the region, borne out of nearly 40 years of visiting.”

 Strategic Shift
 
The deal with Mamee Double Decker will allow the use of Manchester United’s Red Devil logo and images of star players such as Wayne Rooney and Javier Hernandez, according to one of the people familiar with the plan.
Under the U.S.-based Glazer family, the team’s owners, and former JPMorgan Chase & Co. banker Edward Woodward, the team’s chief of staff, Manchester United changed the way it deals with sponsors in 2008 to capitalize on its global appeal.
The club has signed regional and sector-specific deals as well as preserving the rights of global partners, allowing commercial revenue, excluding shirt sales, to grow 10-fold to 40 million pounds since June 2008.
The team’s principal sponsor Aon Corp. (AON) agreed to pay 80 million pounds for the right to have its name emblazoned on the team’s shirt for four years. The contract with Mammee Double Decker, will be the latest to be signed with an Asian company,

Asian Sponsors

Existing sponsors from Asia include India’s Bharti Airtel Ltd. (BHARTI), South Korean tire-maker Kumho Tire Co. and Thai beer brand Singha. In August, the club signed PCCW Ltd. (8) as its official telecommunications and broadcast partner for Hong Kong.
The team has won four Premier League titles and appeared in three Champions League finals, winning in 2008, since it was bought by the Glazers in 2005. A decline in performances on the field won’t affect its income from sponsors because none of the contracts carry success clauses.

Overall commercial revenue is close to passing 100 million pounds for the first time, which would bring it in line with the team’s broadcast and match day income. The club has 70 employees in a London-based commercial sales office and plans to relocate to a larger property. It’s also seeking to open an office in Asia. The team is seeking global partners in the energy, information technology and mobile-phone industries.
The club’s revenue puts it in third place globally for sales behind Spain’s Real Madrid and Barcelona. Last month, Premier League rival Arsenal announced record sales of 379.9 million pounds on property sales. Yet, the sales for the team’s soccer activities declined by 1.3 percent to 222.9 million pounds.

Story from Bloomberg.com

Images from HQworld.net

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Singapore Stock Exchange gives permission for a planned $1 billion float. #mufc

Business digest: Red Devils look to raise £635m by flogging 25 per cent of parent company shares.

The club wants to raise $1bn (£635m) to pay off some of its debts by selling about 25% of the parent company's shares.
United want to complete the process, which is known as an initial public offering (IPO), by the end of the year.
They will spend the next few weeks speaking to investors ahead of a road show to market the offer.
But analysts said the club might decide that it was not a good time to list.
"Volatile markets and weakening sentiment would be a major drawback for anyone who wants to list," said Vishnu Varathan from Capital Economic in Singapore.
"It's not the most ideal time to list, it's not a bull market. Tapping new sources of funds could be a challenge and pricing could come under pressure."
Manchester United is currently profitable, having reported a record annual operating profit of £110.9m for the year to the end of June 2011.
Headline pre-tax profit came in at £29.7m, compared with a loss the previous year.
The club is reported to be considering creating different classes of shares, some of which have lower voting rights but carry higher dividends.
The idea of that would be to maintain control of the club by the Glazer family, which bought Manchester United in 2005.
BBCnews

Meanwhile I have been having a ball at the United games, the Chesea game was pretty crazy with all the missed chances and drama.  I am gutted about the number of injuries being picked up too.  Another injury to defender Chris Smalling. A groin injury I believe.  Also injured was Javier Hernandez, after a collision with Ashley Cole. The young mexican striker was limping badly with what looked like a strained or sprained ankle.  I sincereley hope its not a ligament injury or anything major as he is in great form.

Tomorrow is the Leeds away fixture and I'm ready as I'll ever be.  Barring any mis-haps at the match I will report back soon! 

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