Tuesday, 31 July 2012

Man United Fan Blog 30/31 July 2012 - The IPO!

It has now been revealed that the IPO money will not all go to reducing the club's debt, instead around half will go straight into the pockets of the Glazers. These guys don't do themselves any favours on the PR front, but why should they? They invested in the club to make money, and that they have done by the bucketload. This is just another way of adding to their personal coffers, and if United fans in general and MUST in particular think that no one will buy into this latest scam, think again. Here is a quote from the BBC website:

While acknowledging that "it's disappointing investors won't be able to vote and won't get a dividend", Roy Kaitcer, divisional director at stockbroker Brewin Dolphin, says the club's finances are not as bad as some suggest.

Also a keen United supporter, he points to the fact that the club's debts are already being paid down, and the upcoming share sale, if successful, will reduce them further by more than $100m.

He also points out that the Glazers are able to change the debt profile of their various holding companies by moving debt off the books of one and on to another.

Perhaps most importantly, he says the club's strong brand name and loyal support from more than 650 million supporters - according to United's own figures - across the world makes the club an extremely attractive commercial partner for global companies.

Further evidence for this came on Monday with the announcement that Chevrolet, owned by General Motors, one of the biggest carmakers in the world, will be the club's new shirt sponsor from the 2014-15 season.

And fanatical fans, driven by emotion rather than dispassionate financial analysis, may well insure the upcoming New York share sale proves hugely successful.

It now looks certain that the IPO will go ahead, and it will probably be oversubscribed, even in the US, and as fans all that we can hope for is that the Glazers now have to do something positive to maintain the share price. Moura and RVP perhaps?

On a lighter note it appears that Andy Carroll has turned down a move to West Ham after Liverpool had agreed terms with the Hammers. Seems he only wants to go back to Newcastle or stay and fight for his place at Liverpool. Geordie Shore or Desperate Scousewives? What a choice!

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