bill-swift - July 9, 2012
Man U is the most well known sports organization around the world next to the New York Yankees. For the last eight years they have been the most valuable soccer club in the world; their current valuation according to Forbes Magazine is £1.43bn. For those that like to work in dollars and cents that's about $2.22 billion.
Even though they are the most popular and valuable club in the world they still have about £400 million in debt.
To deal with this, the owners (the Glazer Family who also own the Tampa Bay Buccaneers) have decided to take a page out of the Green Bay Packers financial playbook. They are going to sell stock in the team to raise funds.
Last week the Glazer's filed the paperwork with the SEC to get the team listed on the New York Stock Exchange. He hopes to raise somewhere in the range of $100 million through the IPO, all of which is expected to go towards the debt.
As cool as it would be to own a piece of Man U, the stock would be essentially worthless to anyone but a collector. The Glazers would still have complete control of the team and stock owners would not see any dividends either.
Just like when the Packers sold stock recently, buyers get a really cool piece of paper and that is it. That didn't stop Green Bay fans from laying down $250 a share and buying 185,000 shares in the first two days.
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