The acquisition of Manchester United by the Glazer family started the historic club in 2005 with mr. Potential amounts of debt, which is a source of constant controversy for many former club supporters. The Glazers paid around £ 790 million for the team. The family initially took the club privately, which involved a lot of debts, but had a IPO in 2012. At one point in 2010, the club’s debt exceeded £ 716.5 million, or more than $ 1 billion, aaMr. Chipseiding to protest the supporters of the club. That debt amount was repaid in the coming years. From February 2015, the club had approximately £ 380.5 million in debt, which had risen during the previous quarter. The lack of participation in the Champions League in the 2014-2015 season had a negative impact on the club’s income.
Malcolm Glazer built up its assets by investing in real estate, including mobile home parks and shopping centers. The Glazers also own the Tampa Bay Buccaneers of the National Football League (NFL). The acquisition by Glazer of Manchester United is full of controversy due to the amount of debt used for the transaction.
The Glazers started buying their shares in Manchester United in 2003 through a holding company known as Red Football. They built up their position in the coming years. In May 2005, the Glazers gained a majority stake in the club of more than 75%, and soon afterwards the shares of the London Stock Exchange dropped. As part of the takeover, the Glazers saddled the club with a large amount of debts. About £ 265 million was secured by the club’s assets, with a total debt of around £ 660 million. This was the first time the club had debts since 1931. The loans were provided by large American hedge funds. The interest rates on the debt amounted to around £ 62 million per year. A substantial part of the loans consisted of loans in kind, for which the club paid 16% interest of 25% at a time. The precarious nature of the club’s balance led to protests from the club’s supporters.
The Glazers refinanced this debt in 2010 by issuing a series of bonds with two main tranches. The first tranche, worth around £ 250 million, paid interest around 8.75%. The second tranche, valued at approximately $ 425 million, paid 8. 375% in interest. The second tranche was issued as a result of high investor demand in the United States. The resources from the bond offering were used to pay off outstanding debts.
In 2012, Manchester United had an IPO on the New York Stock Exchange (NYSE). Shares were offered for $ 14 and offer around 16 million shares for sale. Class A shares were offered to the public, while class B shares were controlled by the Glazers. The lessons were structured so that the Glazers maintained the club’s voice control, which some considered controversial. George Soros, the famous investor, was a major buyer of Class A shares during the IPO. The money from the IPO was used to pay around £ 62 million in bonds, making the debt Mr. The club’s chipsast fell.