Manchester Utd Plans Cayman Public Offering
Monday, July 9, 2012
English Premier League football club, Manchester United has established a corporate
entity in the Cayman Islands for the purposes of a public offering which hopes to raise USD100m.
Owners, the Glazer family, have filed a registration document with the United States Securities
Exchange Commission, notifying it of its intention to restructure Manchester
United as a subsidiary of a holding company, Manchester United Ltd, in the Caymans.
The Cayman corporation was established on April 30, 2012. Presently the club is structured under Red Football Shareholder Limited, incorporated in the US state of Delaware.
According to a document prepared for prospective investors, shareholders would
hold Class A shares, and have 10 times less voting rights than the Glazer family
who would retain Class B shares under the deal. There are no plans for dividend
payments, with the document instead stating that investors would
benefit as the value of the Manchester United brand appreciates.
The Club is estimated to be worth USD2.22bn, according to Forbes magazine, making it the world's most valuable soccer club,
but is saddled with USD633m in debt, costing the club some USD80m
in interest and associated costs in 2011.