United thread 2012/13 (inc merged IPO thread)

[bacuzzi]

Manchester United’s share price MANU +0.18% held after it began trading, though the late morning price of $14.01 suggests the underwriters have been supporting the stock, and that, not unlike Facebook’s IPO, a fall will come when they finally pull back.

from http://blogs.marketwatch.com/thetel...ggest-sports-business-in-the-world-ceo-crows/

 

[Marvin]

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Surely the price on the secondary mkt has no effect on the day to day operation of MUFC? The Glazer's have their money now, and the share price just affects the paper value of investors assets. In the long run it may encourage or discourage Glazers from repeating this exercise and it could also set a takeover value.

 

[AustinBlue]

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Surely the price on the secondary mkt has no effect on the day to day operation of MUFC? The Glazer's have their money now, and the share price just affects the paper value of investors assets. In the long run it may encourage or discourage Glazers from repeating this exercise and it could also set a takeover value.

Sort of... if the secondary market had established dynamic and overwhelming demand for the stocks, then it would have given the Glazers lots of options for borrowing against their stock. They will find that much harder and will be tempted to keep more of the proceeds for themselves. That said, Manchester United is not going to fail. And the Glazers will make out like bandits.

 

[Vienna_70]

Dropping

Real-time updates (no delay)

<a class="postlink" href="http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chls=IntervalBasedLine&q=NYSE:MANU&ntsp=0&fct=big" onclick="window.open(this.href);return false;">http://www.google.com/finance?chdnp=1&c ... =0&fct=big</a>

Surely the price on the secondary mkt has no effect on the day to day operation of MUFC? The Glazer's have their money now, and the share price just affects the paper value of investors assets. In the long run it may encourage or discourage Glazers from repeating this exercise and it could also set a takeover value.

Sort of... if the secondary market had established dynamic and overwhelming demand for the stocks, then it would have given the Glazers lots of options for borrowing against their stock. They will find that much harder and will be tempted to keep more of the proceeds for themselves. That said, Manchester United is not going to fail. And the Glazers will make out like bandits.

And does the lower share price mean GPC will have less funds available to buy more established players that have come up through the youth set-up and play for the club for the love of it.

 

[44%]

from an article by andersred ,

So the Manchester United IPO has finally
happened. Having failed in Hong Kong and
Singapore, the Glazers and their
increasingly desperate bankers ditched
their own ludicrous $16-20 per share price
range and the shares have limped on to the
NYSE at a still very, very aggressive price of
$14 per share.
The whole saga has been a grubby and
unedifying spectacle in our club's history
that does very, very little indeed to
improve the club's finances. The whole
exercise has only been undertaken to help
the Glazer family with their cash flow
problems.
From the latest SEC filing we have
confirmation that at the lower issue price,
the club will receive net proceeds (after
underwriters' discounts and commissions)
of c. $110.3m (around £70.7m).
The club will use all this $110.3m to repay
$101.7m face value (£63.6m) of the 2017
US$ notes at a price of 108.375% of
nominal value.
These US$ notes pay 8.375% interest so the
annual saving before tax will be:
£63.6m x 8.375% = £5.3m per year
Because interest is tax deductible, this
reduction in interest paid will increase
taxable profits. As a consequence of the
IPO, United will pay US Federal Income
Taxes at a rate of 35%. The net interest
saving after tax will therefore be:
£5.3m x (1 - 0.35) = £3.46m per year
This net saving is the equivalent of the
matchday income from one game at Old
Trafford. It is just over 1% of the club's
annual revenue and around 3-4% of
EBITDA.
Before any United fans begin celebrating
this tiny saving, there is a further sting in
the tail.
The prospectus informs us that the club,
and not the family, will bear the expenses
of the IPO. From page 151 we can see that
these expenses total $12.3m (c. £7.9m).
With so little debt repaid and United
bearing the £7.9m of expenses, it will
take until the end of 2014 for the club to
even break-even from the IPO, let alone
benefit financially.
And the Glazer family? They receive their
$110m straight away.
That's "Glazernomics" folks.....!<br /><br />-- Fri Aug 10, 2012 5:42 pm --<br /><br />Glazers really know how to make money , so united save £3m a year on interest , that will make no difference at all , while glazers get the money they want

 

[sparky1]

from an article by andersred ,

So the Manchester United IPO has finally
happened. Having failed in Hong Kong and
Singapore, the Glazers and their
increasingly desperate bankers ditched
their own ludicrous $16-20 per share price
range and the shares have limped on to the
NYSE at a still very, very aggressive price of
$14 per share.
The whole saga has been a grubby and
unedifying spectacle in our club's history
that does very, very little indeed to
improve the club's finances. The whole
exercise has only been undertaken to help
the Glazer family with their cash flow
problems.
From the latest SEC filing we have
confirmation that at the lower issue price,
the club will receive net proceeds (after
underwriters' discounts and commissions)
of c. $110.3m (around £70.7m).
The club will use all this $110.3m to repay
$101.7m face value (£63.6m) of the 2017
US$ notes at a price of 108.375% of
nominal value.
These US$ notes pay 8.375% interest so the
annual saving before tax will be:
£63.6m x 8.375% = £5.3m per year
Because interest is tax deductible, this
reduction in interest paid will increase
taxable profits. As a consequence of the
IPO, United will pay US Federal Income
Taxes at a rate of 35%. The net interest
saving after tax will therefore be:
£5.3m x (1 - 0.35) = £3.46m per year
This net saving is the equivalent of the
matchday income from one game at Old
Trafford. It is just over 1% of the club's
annual revenue and around 3-4% of
EBITDA.
Before any United fans begin celebrating
this tiny saving, there is a further sting in
the tail.
The prospectus informs us that the club,
and not the family, will bear the expenses
of the IPO. From page 151 we can see that
these expenses total $12.3m (c. £7.9m).
With so little debt repaid and United
bearing the £7.9m of expenses, it will
take until the end of 2014 for the club to
even break-even from the IPO, let alone
benefit financially.
And the Glazer family? They receive their
$110m straight away.
That's "Glazernomics" folks.....!

-- Fri Aug 10, 2012 5:42 pm --

Glazers really know how to make money , so united save £3m a year on interest , that will make no difference at all , while glazers get the money they want

God Bless Uncle Malcolm

 

[Marvin]

Dropping

Real-time updates (no delay)

<a class="postlink" href="http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chls=IntervalBasedLine&q=NYSE:MANU&ntsp=0&fct=big" onclick="window.open(this.href);return false;">http://www.google.com/finance?chdnp=1&c ... =0&fct=big</a>

Surely the price on the secondary mkt has no effect on the day to day operation of MUFC? The Glazer's have their money now, and the share price just affects the paper value of investors assets. In the long run it may encourage or discourage Glazers from repeating this exercise and it could also set a takeover value.

Sort of... if the secondary market had established dynamic and overwhelming demand for the stocks, then it would have given the Glazers lots of options for borrowing against their stock. They will find that much harder and will be tempted to keep more of the proceeds for themselves. That said, Manchester United is not going to fail. And the Glazers will make out like bandits.

But it's utterly pointless now for City fans to start following the Man Utd share price. Now they have issued the shares, what prices they are subsequently exchanged at is irrelevant to the day to day operation of man Utd and has no effect on Ferguson's transfer budget

 

[urbanblue67]

can someone answer this / is the scum the only club to be floated on the stock market and if so why ???? am thick as a plank lol

 

[SWP's back]

from an article by andersred ,

So the Manchester United IPO has finally
happened. Having failed in Hong Kong and
Singapore, the Glazers and their
increasingly desperate bankers ditched
their own ludicrous $16-20 per share price
range and the shares have limped on to the
NYSE at a still very, very aggressive price of
$14 per share.
The whole saga has been a grubby and
unedifying spectacle in our club's history
that does very, very little indeed to
improve the club's finances. The whole
exercise has only been undertaken to help
the Glazer family with their cash flow
problems.
From the latest SEC filing we have
confirmation that at the lower issue price,
the club will receive net proceeds (after
underwriters' discounts and commissions)
of c. $110.3m (around £70.7m).
The club will use all this $110.3m to repay
$101.7m face value (£63.6m) of the 2017
US$ notes at a price of 108.375% of
nominal value.
These US$ notes pay 8.375% interest so the
annual saving before tax will be:
£63.6m x 8.375% = £5.3m per year
Because interest is tax deductible, this
reduction in interest paid will increase
taxable profits. As a consequence of the
IPO, United will pay US Federal Income
Taxes at a rate of 35%. The net interest
saving after tax will therefore be:
£5.3m x (1 - 0.35) = £3.46m per year
This net saving is the equivalent of the
matchday income from one game at Old
Trafford. It is just over 1% of the club's
annual revenue and around 3-4% of
EBITDA.
Before any United fans begin celebrating
this tiny saving, there is a further sting in
the tail.
The prospectus informs us that the club,
and not the family, will bear the expenses
of the IPO. From page 151 we can see that
these expenses total $12.3m (c. £7.9m).
With so little debt repaid and United
bearing the £7.9m of expenses, it will
take until the end of 2014 for the club to
even break-even from the IPO, let alone
benefit financially.
And the Glazer family? They receive their
$110m straight away.
That's "Glazernomics" folks.....!

-- Fri Aug 10, 2012 5:42 pm --

Glazers really know how to make money , so united save £3m a year on interest , that will make no difference at all , while glazers get the money they want

Awesome. And the stock is flatlining at 14 which says the underwriters are heavily involved in buying. Today couldn't have gone much bet for a City fan.<br /><br />-- Fri Aug 10, 2012 7:39 pm --<br /><br />

Surely the price on the secondary mkt has no effect on the day to day operation of MUFC? The Glazer's have their money now, and the share price just affects the paper value of investors assets. In the long run it may encourage or discourage Glazers from repeating this exercise and it could also set a takeover value.

Sort of... if the secondary market had established dynamic and overwhelming demand for the stocks, then it would have given the Glazers lots of options for borrowing against their stock. They will find that much harder and will be tempted to keep more of the proceeds for themselves. That said, Manchester United is not going to fail. And the Glazers will make out like bandits.

But it's utterly pointless now for City fans to start following the Man Utd share price. Now they have issued the shares, what prices they are subsequently exchanged at is irrelevant to the day to day operation of man Utd and has no effect on Ferguson's transfer budget

Ofcourse it does today. It seems as though the underwriters are having to buy a lot of stock to maintain the $14 price. These banks will have written argeements in place about cover their costs and will have now have input on the running of the show. If the shares drop then it adds further pressure on the club to ensure they are not spending their cash reserve (on transfers for example).

If the price had rocketed (not that it was ever going to) then it would allow the Glazers far more freedom going forward to repay more of the debt inexpensively and allow them to push more funds towards the playing squad.

Fuck me you are a depressing bastard.

 

[JM Mcr]

Still unsure how bad today is for the Glazers. Obviously the initial offering at $14 wasn't where they wanted it, but as it was underwritten they seem to have done ok from today (based on the 50% they receive, with the IPO costs apparently loaded on the club) but we still need to wait for the shareprice to reach it's own level, without the underwriters involvement, before the death knell can be sounded for them. It does appear tho, on the face of it, that $14 a share is not where it will sit once everything settles down. On that basis this may well be a slap in the face for the Glazers future plans, hopefully it's the first small step towards there departure (tho I wouldn't put it past them to have an ace up their sleeve somewhere along the line) and I'm sure all true mancunian football fans on this esteemed site will join me in crossing their fingers and praying that that is the case ;-)