While tuning in to the BBC World Service Program, the sports segment catches my attention. The Glazer Family, owner of the Manchester United Football Club an English professional football club, based in Old Trafford, Greater Manchester, that plays in the Premier League plans to sell up to 30 percent share of the team. However, nothing official yet.
The move is to raise around 650 million US dollars (some financial investors saying up to 1 billion US dollars) in order to pay large trunk of debt and use the remaining money to find new players. The Glazer family, acquisition of Manchester United in 2005 utilizing borrowed foreign money is taking its tool in the interest rate.
The plan sale of share in the Singapore market is a huge gamble in the Asian market. BPP Professor Chris Brady is skeptical about the target amount of money to raise might not be achievable.
“The Chinese and the all the Asian market are football fanatics and it is a gamble in the current market where old stock market has depressed, but the Glazer family is looking and saying that the club is worth somewhere in the range of 2 to 2.5 billion US dollars, that seem over price to me to be honest and so, it might be that their not gonna be generating that kind of amount.”
Manchester United is in enormous pressure to do will and to qualify in the European Champions League where most of their revenue came from.