Glazers sell United shares to raise S$187m

LONDON — Manchester United’s American owners are set to raise around US$150 million (S$187 million) by selling more of their shares in the club on the New York Stock Exchange.

The English Premier League club announced on Wednesday that the Glazer family is selling eight million shares with reduced voting rights, which equates to around 5 per cent of the business. The Glazers, who maintain control of the club, previously sold 10 per cent of their holding via a stock listing in 2012.

It comes two months after Malcom Glazer, who led the family takeover of United in 2005, died. His six grown children control the club.

The latest share sale was announced on a day when United shares closed at US$19.31, with the Glazers cashing in at a time of renewed confidence at the club.

United also signed a 10-year kit sponsorship deal earlier this month with adidas worth an overall £750 million (S$1.58 million) from next year.

But failure to play in the Champions League for two or more consecutive seasons would see the annual adidas payments drop after the first year by 30 per cent from £75 million to £52.5 million.

Conversely the fee could rise by up to £4 million each year if the team win the Premier League, Champions League or FA Cup.

A loss of Champions League revenue from UEFA — the club failed to qualify for the coming 2014-15 Champions League campaign — is already set to cost the club around US$60 million next season. United had an estimated revenue of £430 million for the year to June 30, 2014. AP