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'No imminent plans' for share sale at Manchester United

20 Sep 2013 15:01:56

'No imminent plans' for share sale at Manchester  United

Manchester United's executive vice-chairman Ed Woodward insists the Old Trafford outfit has no imminent plans for a new share sale that could earn the Glazer family millions.

United's controversial American owners have attracted scorn from many of the club's supporters since they completed a highly leveraged takeover in 2005.

Yet predictions of financial meltdown for the club have not materialised, with annual results announced this week confirming the club's debt had fallen to £389.2million.

Whilst this is still an enormous sum, given United are expecting to generate revenue of over £420million this year when the effects of a massive new television deal start to be felt, it is evidently manageable.

Instead, fans critical of the Glazers have been focusing on the vast sums that have seeped out of the club since 2005, estimated to be around £680million, to facilitate the leveraged takeover and its aftermath.

The club confirmed earlier this week finance costs had risen £21.3million to £70.8million due to a restructuring of the 2010 bond issue.

It has been argued such sums could have been used to further strengthen David Moyes' squad in a summer when Marouane Fellaini was the only significant addition and United were frustrated in a number of other attempted signings.

Some fans have even suggested a long-discussed expansion of Old Trafford, which would involve a huge amount of building work on the South Stand, should have been revisited, whilst others have called for a reduction in ticket prices.

Instead there is the spectre of the Glazer family pocketing more cash with another share sale.

They raised £70million from an initial part flotation on the New York Stock Exchange last year and papers for a shelf filing issued with this week's results would allow them to raise a further £243million - based on an existing share price of around 17 US dollars - in the coming months.


PA

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