The rags obviously doing things the right way open and honest
no need for uefa to have a look at their books eh!
<a class="postlink" href="http://www.cnbc.com//id/44250417" onclick="window.open(this.href);return false;">http://www.cnbc.com//id/44250417</a>
Distracted by the club’s 3-0 thrashing of Tottenham Hotspur, few of Manchester’s United’s 190 million registered supporters in Asia are likely to have noticed the announcement on Monday of a three-year deal with Beeline, the Vietnamese telecommunications group.
The club did not put a value on the agreement, which will put Manchester United content on the mobile phones of 16 million people in Vietnam, Laos and Cambodia. But the prospect of more deals like Beeline – another, with Malaysian snackfood maker Mamee Double Decker, is already lined up – is a key element in Manchester United’s plans to raise up to $1 billion through an initial public offering of 25-30 percent of the shares in Asia.
Trading on its record 19 championships in the English Premier League and its predecessor, Manchester United is already one of the biggest winners from global broadcasting of the league, by far the world’s richest football competition.
The team’s performance has allowed it to dominate television coverage, with particular success in Asia, where a fast growing middle-class audience that is largely starved of top class professional sport has adopted the far away premiership as if it were its own.
Listing in Asia, say people with knowledge of the proposals, will raise the club’s profile still further, allowing it to tap fresh commercial opportunities from Indonesia to China.
But it may not be that simple. The club may be close to all-conquering on the field, but it has been dogged by financial uncertainties since it was acquired by the US-based Glazer family for £790 million in 2005.
The privately owned club pays £45m a year in interest on its gross debts of £515 million, slightly more than the net bill for new players in this year’s so-called “transfer window”. Red Football Joint Venture, the club’s parent company, announced in March a pre-tax loss of £109 million for the year ending June 2010.
There is also mystery over the repayment of high-interest payment-in-kind notes issued when the family bought Manchester United. The PIK notes were paid off in November, but the Glazers have not said how, nor where the money came from.
The club’s opaque finances are seen by skeptics as a key reason why Manchester United decided to locate its IPO in Asia rather than in London, where there is skepticism about the business models of football clubs whose revenues largely disappear in ever-inflating player salaries and transfer fees.
The air of mystery has been compounded by the club’s surprise choice of Singapore for its IPO, rather than Hong Kong, as had been widely expected – a decision described as “hard to explain” by one banker involved in early discussions on the listing
People with knowledge of the proposals say the driving force was a desire to avoid over-identification with China, and to tap the very large fan base among the 600 million people of relatively well-developed South-East Asia, for whom Singapore is a natural financial hub.
However, the financial sector in Hong Kong is awash with rumors that the switch is somehow designed to allow the secretive Glazers to avoid close scrutiny of Manchester’s United’s finances, including the relationship between the club’s debts and their own.
The rumors include claims that Hong Kong turned the listing down, for which there is no evidence, and that the club found it could not list in the Chinese territory because its stock exchange requires a history of profits while Singapore’s does not. In fact, both exchanges have a range of listing requirements, including regulations that allow lossmaking businesses to float.
Bankers say it is difficult to envisage a serious financial issue that would not be caught by Singapore’s listing requirements, but it is possible that the Glazers might find the exchange’s continuous disclosure regime more amenable than Hong Kong’s more rigid rules-based approach.
People with knowledge of the proposals say that all these issues will be clarified in the IPO prospectus. But there are indications that the uncertainty may already be weighing on the IPO’s prospects.
Peter Lim, the Singaporean billionaire who tried to buy Liverpool Football Club last year, has told associates that whether he will invest in Manchester United “depends on the valuation”. Others involved with Mr Lim have said the target price, which values the club at upwards of $3.3 billion, looks “rich”.
Manchester United would be well advised to clarify both the club’s financial position and its reasons for choosing Singapore before the rumors become entrenched. Asians may be football crazy, but they’re not mad.