“More Money Would Be Made Available For Sir Alex Ferguson To Spend”

By on August 8, 2011

The Glazer family are looking to strengthen their grip on Manchester United – by selling a 25 per cent stake in the club.

The Sunday Mirror says United’s American owners are preparing to sell up to a quarter of the club in a move that could raise more than £400million.

That would enable them to slash the £500m debts that are currently costing United £45million-a-year to service, but may also provide Sir Alex Ferguson with more transfer funds. Investment giants UBS are advising on the sale which is called an Initial Public Offering.

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The Glazers are looking to cash in on between 15% and 25% of United. They value the club at £1.7billion – an astonishing increase on the £800m they paid when purchasing the Reds. A city source said:

“The belief is that the Glazers are trying to clear as much of the United debt as possible but still retain at least 75% of the club and therefore stay in full control.

“It’s a smart move. It’s a win-win situation for them because it also enables them to put a stop to the criticism that United is a Glazers’ closed shop.

“If they take this route then they will be open to greater public scrutiny and many United supporters – even those who are their biggest critics – will welcome that.

“To make the club attractive to potential investors they will have to aim to pay dividends to all shareholders.

“If they did that at the moment they would be the only beneficiaries and be accused of taking money directly out of the business.

“If they have got other shareholders they can fully justify paying everyone a dividend – and that would be worth tens of millions of pounds to the Glazers.

“Another factor that would please many fans is that this new funding could also create a situation where more money would be made available for Sir Alex Ferguson to spend on his team.”

Submitted by Football Friends

 

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2 Comments

  1. Samuel Godfrey Baguma

    August 8, 2011 at 10:00 am

    The is the greatest think I have ever heard from the Glazer family. Let them sell some shares to fans. Some fans feel that they should be part and partial to this great club

  2. williamt

    August 10, 2011 at 3:58 am

    If true, the sale of 25% of the club to all buyers is a positive step!
    Fans should be owners and hopefully the percentage of fan ownership would someday reach 50%!

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