Manchester United abandon Singapore and head for Wall Street to raise funds
Wednesday 04 July 2012
Manchester United have abandoned plans to raise funds in Singapore and will instead seek $100m (£64m) from the New York Stock Exchange.
The share listing means the Glazer family will still retain control through a new holding company, Manchester United Ltd, based in the Cayman Islands, but the sums will be used to reduce the club's substantial debts.
United filed their registration statement to hold an initial public offering of shares with the Securities and Exchange Commission on Wall Street last night. The club has been looking to raise funds to help reduce debts resulting from the Glazers' takeover in 2005 that had risen to £423m by the end of March. Plans for a much bigger offering on the Singapore stock market were pursued last year, but were halted due to volatile global markets.
The club, who made a profit of £24m in the nine months to the end of March, including a number of warnings in their statement, principally "our indebtedness could adversely affect our financial health and competitive position" and reduce "the availability of our cash flow to fund the hiring and retention of players and coaching staff." United added that new Uefa financial fair play restrictions "could negatively affect our business."
Meanwhile United have confirmed Paul Pogba has joined Italian champions Juventus, with manager Sir Alex Ferguson criticising the teenager for a lack of respect and claiming the deal was done "a long time ago". The French midfielder, 19, rejected offers of a new deal at Old Trafford last season having joined from Le Havre in 2009.
Ferguson has announced the formal end of the player's time at United, telling MUTV: "Pogba signed for Juventus a long time ago as far as we're aware."
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