Manchester United files for US IPO
2012-07-04 11:27:07
UK's Manchester United stated that it filed a registration statement to hold an initial public offering (IPO) of stock and to become a listed firm on the New York Stock Exchange, reported AP.
The English team said that it hopes to raise around USD100 million from the IPO, and the proceeds will be used to slash financial obligations.
It said that under the reorganization, the team would become a wholly owned subsidiary of Manchester United Ltd., which is a newly formed holding firm located in the Cayman Islands.
Moreover, the Glazer family that acquired the team in 2005 would keep control through Class B shares.
In the prospectus filed to the US Securities and Exchange Commission (SEC), Manchester United said that it had a USD47.5 million loss from continuing operations in the year ending June 30, 2010, whereas it had a USD13 million profit in the next year and an un-audited USD38.2 million profit in the 9 months ending March 31.
Under its USD475.40 million, 13-year agreement with Nike, in 2010-2011, the club received USD40.16 million from the equipment supplier. It has 3 years remaining, in addition to another USD8.9 million as its split of the profits.
Manchester's shirt sponsorship with AON, which runs through the 2013-2014 season, and a separate deal with the company that runs through June 2015 guarantees USD138 million, compared with USD21.9 million a-year deal with AIG that ran for 3 years through the 2009-2010 season.
It is worth noting that last year; Manchester United's revenue from new media and mobile reached USD26.98 million.