Glazers looking to sell off a minority share & bring in a new Investor

[Eleven-Eighteen]

This is not a positive. The minority stake sale only means another payday for the Glazers, while they continue to call the shots.

 

[Classical Mechanic]

Would Jim deal at £5bn?

 

[Rightnr]

This is just another money-making exercise. They need to cede control or we'll be seeing more of the same shite.

If there's one thing the UK don't want more of, it's minorities.

Excuse me, wtf?

 

[Gordon Godot]

Hopefully someone comes in and buys us.

THis is how it begins. The beginning of the end. Now is the time to ramp up the pressure on the Glazers. Boycott OT.

 

[marktan]

This is not a positive. The minority stake sale only means another payday for the Glazers, while they continue to call the shots.

This.

They'll probably sell something small like 3%, they've been selling small bits here and there anyway. Just more money for the Glazers.

 

[Massive Spanner]

This is just another money-making exercise. They need to cede control or we'll be seeing more of the same shite.


Excuse me, wtf?

It's just a pop at the Tories.

 

[StonedhamsterZA]

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5 billion. They must be joking.

 

[UnitedSofa]

If there's one thing the UK don't want more of, it's minorities.

Less of that shit. Reported.

 

[Bosws87]

They know what storms coming on Monday especially if the result follows what you would expect.

I think the end is near and optimistic although this season football wise is gonna be dreadful.

 

[Truth_hurts]

So in essence, the Glaziers want a partial cash out?

 

[cyberman]

Why wouldn’t they sell off 51 percent of the club and just sit back and collect dividends till the end of time and let someone else deal with running the club?is that far fetched?

 

[Ash86]

Bad deal for United.

Actually the type of noise and bad PR fans made after the Teamviewer was a very positive thing as is their decision to end the association after the current deal. The only way for Glazers to go if the club would not be able to pay dividends and would actually need outer investment.
This way the can prolong the ownership looking to get to the new PL TV deal after COVID that would most certainly see the increase in revenues for all the clubs, United included.
It would also be harder to sell the club as a whole as well, since many buyers that we would prefer would want to have a complete control and they would need to buy that minority share. I don;t think we are talking about a 1-2% here, more like 10-15. It's not much, but that's obliviously a problem for a straight buy-out.

 

[Chief123]

Minority share sale will mean nothing for the club from a footballing perspective.

Glazers will still have majority holding, therefore still retain control. When it comes to future investing in the club and players, it's still going to require Glazers to authorise any spend and they'd have to contribute towards any money put into the club.

It could potentially be a worse situation than we have now.

Needs to be a full or majority sale of the club to new controllers.

 

[lefty_jakobz]

THis is how it begins. The beginning of the end. Now is the time to ramp up the pressure on the Glazers. Boycott OT.

Hopefully the protests ramp up after the Liverpool game even if we somehow sneak a result

 

[Eleven-Eighteen]

I have question around our debt - If lets say someone buys us for 5bn. Does that 5bn go to the glazers pocket ? or does some of that money pay of their wretched debt as well ?

I don't know where this 5bn number has come from. United's market cap is 2.2bn and there's another 520m in debt. The debt is offset by about a 100m in cash.

So that makes the total value of United about 2.6bn. If someone is willing to pay that 2.6bn they get full ownership of Man Utd. But since it's a listed company and Glazers own like 80% of it, they'll get 80% of 2.2bn

 

[ATXRedDevil]

Would anyone want to buy us now though ( even a minority stake ) ? We're worth what, ~4bn pounds and on top of that we have a ton of debt , terrible squad and decaying stadium. Unless we go for like 1bn I dont see how any money man will want to touch us with a 10 foot pole ? Because we need a TON of money to fox the squad and the stadium

At current trading prices, our equity value is a little over $2 million, not accounting for the control premium the Glazers would get. Even if you're generous with the premium, the equity probably isn't worth more than $3 billion (that's dollars). The debt is a little over $600 million I believe. So I reckon it's closer to 3 billion pounds than 4. Of course that doesn't mean the Glazers would sell at that price, and additional investment would be needed by any buyer so the total outlay may be more than 4 billion pounds.

 

[Loony BoB]

Why wouldn’t they sell off 51 percent of the club and just sit back and collect dividends till the end of time and let someone else deal with running the club?is that far fetched?

Because then they can't control the dividends they receive. It's pretty obvious, really. And if they sell this minority stake, it will also be for their own profit. Quite frankly this is just their way of milking United for all they can.

 

[Big Ben Foster]

I'd prefer a sale, but failing that, an activist investor with a board seat could be huge for us.

 

[marcus agrippa]

Trying to pour cold water on upcoming protests.

They may well be, but I say the best time to strike an enemy is when he's already down on his knees. Finish him off once and for all. This is the time to ramp up the protests.

 

[TsuWave]

After raising the price of Amazon prime subscriptions buying United is the least big beezy could do for the people

 

[Widow]

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[grahamo]

The greedy b£$£$£ds are starting to wobble. Keep up the good work everyone. I hope this is the start of getting rid of those leeches!

 

[ATXRedDevil]

Would cost £5bn+, then the debt to be paid off, probably need £1bn spent on Old Trafford/a new stadium, and more bringing our facilities up to scratch. We are a bad purchase right now.

Where are you getting these numbers from? The company is publicly traded and the total equity at market value is currently around $2 billion (dollars!).

 

[Brophs]

Knighton shoots and he scores.

Take that, nerds.

 

[::sonny::]

They are the new Mike Ashley

 

[UnitedSofa]

Where are you getting these numbers from? The company is publicly traded and the total equity at market value is currently around $2 billion (dollars!).

Chelsea went for 4BN - no way we’re going for anything lesss

 

[ATXRedDevil]

I don't know where this 5bn number has come from. United's market cap is 2.2bn and there's another 520m in debt. The debt is offset by about a 100m in cash.

So that makes the total value of United about 2.6bn. If someone is willing to pay that 2.6bn they get full ownership of Man Utd. But since it's a listed company and Glazers own like 80% of it, they'll get 80% of 2.2bn

Great minds...

 

[Gordon Godot]

I have question around our debt - If lets say someone buys us for 5bn. Does that 5bn go to the glazers pocket ? or does some of that money pay of their wretched debt as well ?

Numbers are often imprecise. There is typcially a total deal value, which includes the debt. The debt would stay on the company, its not the Glazers debt. THey would receive money for their ownership stake. I very much doubt it is worth $5bn, current market cap is around $2bn, though the listed shares have lower voting rights. So $5bn (including c $0.6bn debt) would be pretty much double current value.

 

[11101]

So this is going to be the new annual 'United looking to hire a Director of Football' news briefing now we actually have a DoF, to placate fans after another shite window?

 

[Bosws87]

Chelsea went for 4BN - no way we’re going for anything lesss

Wrong, a huge portion of that is promise to invest in the future.

 

[Big Ben Foster]

Where are you getting these numbers from? The company is publicly traded and the total equity at market value is currently around $2 billion (dollars!).

Not all of the shares are publicly traded, and if you're going to acquire a company, generally you're going to pay a premium over the market price.

 

[ATXRedDevil]

Chelsea went for 4BN - no way we’re going for anything lesss

That's not how valuations work. Also, Chelsea had 1.5 billion pounds of debt, no public market for the equity and the 4.25 billion number includes estimated investments of 1.75 billion, so it's more like 2.5 billion pounds with 3/5 of that being the debt pay off.. " It is reported the new owners plan to invest £1.75bn into the club, placing the overall takeover value at £4.25bn. " - https://www.skysports.com/football/...-4-25bn-takeover-as-roman-abramovich-era-ends

 

[Ted Lasso]

I wonder if they're short on GameStop

 

[Giggsy13]

Just sell you fecking leaches, you’ve made enough money off the back of this club.

 

[Roboc7]

Who would be stupid enough to invest money in the club and allow these idiots, who are running it into the ground, to remain in control.

 

[BeforeKeanetherewasRobson]

"would consider".. "preliminary discussions"...

Sounds like when we're looking at a transfer target. And we know how that's working out.

Not naturally glass half empty but seems like PR to me. Even if it happened, what would actually change... they'd still be here, taking Divs, bleeding a bit more.

While it's minority, it changes nothing

 

[ATXRedDevil]

Not all of the shares are publicly traded, and if you're going to acquire a company, generally you're going to pay a premium over the market price.

No, 1/3 of the shares are publicly traded. No one is paying 2-3x premiums. I've done public M&A and capital markets legal work for years and never seen anything close to such a crazy premium. At a $2.2ish billion current market cap, that's the sort of premium that would be required to hit those numbers.

 

[Zen86]

More money in their pockets, nothing more.

 

[Gandalf]

Chelsea went for 4BN - no way we’re going for anything lesss

To be specific though, Chelsea were sold for 2.5BN, the remaining 1.75BN was guaranteed investment in the Stadium project and playing squad. Saying the price was 4.25BN looked good in the media but was bending the truth to fit a narrative. I doubt the Glazers would be bothered about securing guarantees around investment if they were leaving so the price would be the current market value with a little premium on top plus whatever debt comes with that. I can just imagine the price coming in around 3BN and the media narrative will be about how far we have fallen that Chelsea were worth more even though it would be factually incorrect.

 

[Nou_Camp99]

The PL and FA ahould step in and say you can have the money you invested back from the sale in 2005. The rest of it stays where it is as you paid for it with someone else's money you robbing inbred parasites.