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Manchester United share prices slashed in US market

US owners of Manchester United have caused further controversy over the flotation of the club’s shares on the New York stock exchange.

After fans voiced their anger over the Glazer family changing plans to raise $1 billion on the Singapore market in favour of raising a much reduced amount of $330 million in New York, further annoyance will be raised as the share price has been slashed from between $16-$20, down to $14.

The shares account for 10% of the club, and the lowering of the price suggests that the Glazers were unable to find buyers at a higher price.

Manchester United’s flotation comes as the club attempts to recover some of its debts. The Glazers’ sponsorship has been a point of contention for fans as they have seen the club in £430 million of debt and caused a further £520 million in fees and debt repayments.

Manchester United Supporters Trust (MUST) called for a worldwide boycott last week of all Glazer products, as a result of extreme opposition to their ownership. MUST have members in over 100 countries internationally, including India, Indonesia and USA.

The sports investor family bought the club in 2005 for £800 million and the estimates for the sale today values the club at double that price.

A spokesperson for MUST commented: “We have made it clear that on the Glazers’ terms, the share sale is a bad deal for fans, investors and the club.

“For the club, this is a bad deal because more than half of the funds raised will now be paid direct to the Glazer family, with a smaller portion being used to pay down some of their debt which they have saddled the club with since 2005.

“…above all this share sale is a bad deal for investors – to whom we’d say ‘buyer beware’.

“Not only are the shares overpriced, coming with minimal voting rights and poor corporate governance – but we are highly doubtful of the misleading marketing claims of the club’s management, upon which their highly ambitious float price is predicated.”

MUST’s anger comes after reports that the money raised by shares will not fully go to clearing the club’s debt, but will go to the investor.

Allegations that Sir Alex Ferguson will benefit directly from the flotation were vehemently denied, as he commented: “There is not a single grain of truth in this allegation.”

Manchester United FC is currently valued by Forbes magazine at $2.23 billion.

This was posted in Bdaily's Members' News section by Miranda Dobson .