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Glazers to sell more Manchester United shares on NYSE

Article By: ,  Financial Analyst
July 31, 2014 10:45 AM

The Glazer family are planning to sell further shares in Manchester United on the New York Stock Exchange.

The owners, who purchased the English Premier League team in 2005 for $1.34 billion (£790 million), could potentially generate $150 million by selling eight million shares, around five per cent of the business. It would mark the second time the Glazers have decided to recoup some of their expenditure after previously selling ten per cent of their holding via a stock listing in 2012.

United are currently controlled by Malcolm Glazer's six children after he died in May 2014. The club recently secured two major sponsorship deals, with both Chevrolet and adidas signing lucrative agreements with the former Premier League champions. Chevrolet has taken over from Aon as the club's main shirt sponsor in a deal worth £53 million.

Adidas is set to succeed Nike in producing United's kit for the next ten years. The agreement, which comes into force for the 2014/15 season is worth a huge £750 million making it the biggest deal in sporting history. The German sportswear giant will pay £75 million a year, a huge increase on the £23.5 million paid by Nike and dwarfs the £31 million-a-year paid by adidas to Real Madrid.

In a statement in its share prospectus, United said: "Our success and many achievements over the last 20 years does not necessarily mean that we will continue to be successful in the future, whether as a result of changes in player personnel, coaching staff or otherwise.

"A downturn in the performance of our first team could adversely affect our ability to attract and retain coaches and players."

News of the Glazers' decision to sell stock in United impacted on the club's share price which closed 0.57 per cent down at 19.31 on July 30th.

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