Glazers planning to list United in Singapore by year end 2011, looking for $1bn

Anders red saying unlikely to pay off club debt

Originally Posted by That Boy Ronaldo!

I'll highlight the main point.

Why would they pay off the debts, the club continues to do that anyway.

So they can pay themselves more dividends?

possibly the worst scenario.

Originally Posted by Stretlow

Anders red saying unlikely to pay off club debt

Would seem a rather unattractive proposition then Shirley?

WSJ has the story now too:

SINGAPORE—U.K. soccer club Manchester United Ltd. is planning to raise around US$1 billion from a Singapore initial public offering in the fourth quarter, people familiar with the situation said Tuesday.

They said Credit Suisse Group has been mandated by the U.K. club as sole global coordinator and bookrunner on the deal. One person said that other banks will be added as bookrunners on the IPO later on.

The club, which was once listed on the London Stock Exchange as Manchester United PLC, had initial planned to list in Hong Kong, but changed its mind and has now picked Singapore as a listing venue, the people said.

Manchester United was delisted in 2005 after U.S. investor Malcolm Glazer bought the club.

Manchester United wasn't immediately available for comment.

Surely an investor would demand they to pay off a lot of the debt before investing?

Either way, there is only one winner out of all this and it's the Glazer's

Originally Posted by antonin jablonsky

Would seem a rather unattractive proposition then Shirley?

Not really they're meeting the interest payments each year comfortably enough. The only real danger was the PIK loans and they were paid off, this IPO would pay the loan the Glazers took out to pay them off but that's not the club's concern.

How much of their own capital have they put in?
The club is easily paying off the debt and still competing so they will not wipe the debt with the $1bn they will take it for themselves.

Say they put $500m of their own money in they are making a $500m profit while retaining complete control and being able to pay themselves dividends for the years to come.

Originally Posted by RedMenace

Not really they're meeting the interest payments each year comfortably enough. The only real danger was the PIK loans and they were paid off, this IPO would pay the loan the Glazers took out to pay them off but that's not the club's concern.

So, as far as united are concerned it will be of no benefit at all and in fact will take even more money out of the club to pay dividends. Seems Ginners is correct, worst possible scenario

Originally Posted by RedMenace

Not really they're meeting the interest payments each year comfortably enough. The only real danger was the PIK loans and they were paid off, this IPO would pay the loan the Glazers took out to pay them off but that's not the club's concern.

Agreed.

The value of the club is only going to continue increasing, especially when the European clubs break with UEFA/FIFA, so over the long term this will make them incredible rich. Occasionally sell blocks of shares, while pocketing a healthy dividend every year. Worked for Martin Edwards after all.

By the time they've finally £#%&!ed off and the club's debt free, we'll be on the stock market and vulnerable to another leveraged takeover. Round and round we go

Good for the Glazers, more than likely no real difference for United would seem to be the consensus.

I think they will pay the debt off, or at least a portion of it to ensure we remain in line with the fair play regulations, and their ultimate aim will be to pay off the debt I would've thought.

Might pay down some of it if there's money left over after their own loans have been paid, they have been buying back bonds bit by bit.

Originally Posted by dunk

I think they will pay the debt off, or at least a portion of it to ensure we remain in line with the fair play regulations, and their ultimate aim will be to pay off the debt I would've thought.

Old debt, nowt to do with the regulations.

If they get a $1bn return and keep a controlling stake 6 years after buying the club for £800mil, they've played an absolute blinder tbf.

Doesn't it make you £#%&!ing puke.

Maybe now we'll get Sneijder.

Originally Posted by General Woundwort

If they get a $1bn return and keep a controlling stake 6 years after buying the club for £800mil, they've played an absolute blinder tbf.

Doesn't it make you £#%&!ing puke.

but who in their right mind is going to pay 610,981,880.17 GBP (3/4 of the original purchase) for a non controlling stake?

Thousands of different investors in Asia, the same people who bought the bonds. Small individual stakes that add up to somewhere under 50%.

Originally Posted by believe

but who in their right mind is going to pay 610,981,880.17 GBP (3/4 of the original purchase) for a non controlling stake?

Speculators.

Also, bear in mind what was mentioned earlier in the thread regarding the latest Forbes valuation.

Assuming any of this comes to pass, (and we seem to hear a different, albeit similar, story every other week), we'll have to hope that any investors don't pull the same stunt the Glazers did and speculate with somebody else's money.