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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.