Monday, 30 July 2012

Man United Fan Blog 26-29 July 2012

Well, the Olympics have kicked off and its all gone quiet on the football front, with Becks making the most headlines for his part in the opening ceremony. On the pitch, we beat Shanghai Shenhua, with a goal from man of the match Kagawa, and with Bebe outstanding. Now, before we all go overboard, I'm sure that even David Bellion had one outstanding game before he departed, and it can only be a matter of time before Bebe goes the same way. I would love to be proven wrong, but I just can't see it.

Oscar has finally signed for Chelsea, whilst Arsenal are preparing for life without RVP as supposedly evidenced by the fact that Lucas Podolski has not been given a shirt number. Apparently Herr Podolski loves the number 10, currently occupied by, you've guessed it, RVP! It really must be a slow time for papers to be bothering with stories like this.

Team GB kicked off with a 1-1 draw against Senegal, with Craig Bellamy getting booed for being a Scouser! In the previous match at Old Trafford Luis Suarez was booed for quite different reasons, and much more vociferously. At least Bellamy scored our goal! The biggest positive coming out of the game was the involvement of Tom Cleverley. Our boy was all over the pitch and clearly demanding the ball. He repeated this in the second game as we saw off UAE 3-1, playing the killer pass for Sturridge's decisive goal. Let's hope that Tom can keep himself fit throughout the season.

The Andy Carroll saga has reappeared on the back pages, with West Ham putting in a £15m bid, but Newcastle are still favouries for his signature. Nice bit of business for the toon if they can get him back for around £20m less than they sold him.

Worrying times if you are a Glazer! The IPO story just won't go away, and a Manchester United fan writing in the Sunday Times did a real hatchet job on the offering. I am sure there are other sides to the story, there must be a pro Glazer United fan somewhere! Anyway, I had a look at the prospectus, and there are a ton of risks associated with the IPO. There is an excellent blog feature here

Man United IPO risks

though I have summarised the ones that I consider to be the most important below:-

If we are unable to maintain and enhance our brand and reputation, particularly in new markets, or if events occur that damage our brand and reputation, our ability to expand our follower base, sponsors, and commercial partners or to sell significant quantities of our products may be impaired.

This could only come about in two ways, mismanagement in the style of Glasgow Rangers, or serial relegation. Can't really see either of these things happening.

Negotiation and pricing of key media contracts are outside our control and those contracts may change in the future.

This highlights the ultimate need to negotiate individual TV rights, but I think we are a long way off this.

European competitions cannot be relied upon as a source of income.

Quite right, so lets hope Sir Alex takes the competition a bit more seriously this season. There is no way we should have struggled to get out of that group last season.

Matchday revenue from our supporters is a significant portion of overall revenue.

Reduce the cost of beer and pies, improve kiosk staff and revenue will go up! Keep ticket prices frozen, or even lower them, and revenue will go up!

The markets in which we operate are highly competitive, both within Europe and internationally, and increased competition could cause our profitability to decline.

Our owners are not as rich as other owners. There are the constant threats of Barcelona and Real Madrid, there are also the more recent threats from City and Chelsea. This season PSG could well become a force. We need to be vigilant and make funds available.

Failure to adequately protect our intellectual property and curb the sale of counterfeit merchandise could injure our brand.

Maybe the shop should sell green and gold scarves! There will always be counterfeit products, deal with it.

Our indebtedness could adversely affect our financial health and competitive position.

No shit! Release a proper IPO with full voting rights and profit sharing.

Our indebtedness may restrict our ability to pursue our business strategies.

See previous answer.

Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.

See previous answer.

Because of its significant share ownership, our principal shareholder will be able to exert control over us and our significant corporate decisions.

Amazing clause to admit to but its true!

Following the offering, we will be a “controlled company” within the meaning of the New York Stock Exchange rules, and we intend to take advantage of exemptions from certain corporate governance requirements.

Loopholes that make the offering far less attractive to potential investors.

There is no existing market for our Class A ordinary shares, and we do not know if one will develop to provide you with adequate liquidity.

Release a proper IPO with full voting rights and profit sharing.

Anti-takeover provisions in our organizational documents and Cayman Islands law may discourage or prevent a change of control, even if an acquisition would be beneficial to our shareholders, which could depress the price of our Class A ordinary shares and prevent attempts by our shareholders to replace or remove our current management.

Shocking! Cayman islands and anti-takeover provisions! Release a proper IPO with full voting rights and profit sharing.

The purchase price of our Class A ordinary shares might not reflect its value, and you may experience dilution as a result of this offering and future equity issuances.

Release a proper IPO with full voting rights and profit sharing.

Finally, for today, there is no news on the Lucas Moura saga!

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