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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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Plans to sell shares emerging from Dow Jones. #mufc

This story emerged towards the end of the 2011/12 Premier League season and has now resurfaced again.
Talk of Manchester United going back on the market may lead to a change of ownership which to be honest, I am not sure whether it's good or bad news.  The Glazers have many detractors but apart from ticket price rises I can't really think of anything to criticise them over.  Sir Alex has always backed them so I see no real reason to feel unhappy.  A much greater fear for me is that Manchester United Football Club might become the trophy-piece of an Oligarch, Sheik, Gangster or some other kind of Royal brat.  Anyway her's the article, ramble complete.

Manchester United plan IPO in Singapore: Dow Jones

The English Premier League giants Manchester United plan to raise one billion US dollars in an initial public offering (IPO) in Singapore later this year, Dow Jones Newswires reported Tuesday.

The share sale is planned for the fourth quarter, Dow Jones said, quoting people familiar with the situation.
Credit Suisse Group has been mandated by as sole global coordinator and bookrunner on the deal, said the the sources, who were not named. One source said other banks are expected to be added as bookrunners later.
The club, which was once listed on the London Stock Exchange as Manchester United PLC, had initially planned to list in Hong Kong.
But the club changed is its mind and now prefers to list in Hong Kong's regional rival Singapore, according to the Dow Jones sources.
United were delisted from the London exchange in 2005 after US tycoon Malcolm Glazer bought the club.
A Singapore listing by United, ranked by Forbes earlier this year as the world's most valuable football team in 2011 with a value of $1.86 billion, is expected to boost the city-state's credentials as a financial centre.
Analysts said United have chosen to list in Asia because of the club's popularity in the football-mad region where it has legions of fans.
United have been seeking ways to cut financing costs and raise money to expand their lucrative business, as well as acquire players to strengthen the club.

Article from Yahoo news.

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