Manchester United has revealed its financial strategy for keeping up with its wealthy neighbours, an initial public offering (IPO) on the New York stock exchange.
The club has filed papers with regulators suggesting the IPO could be worth $100m but many observers expect this is just an opening salvo, and the actual amount being targeted could be as high as $1bn.
The football club certainly needs the cash, its debts at the end of march were just over £420m against profits of around £12m in 2010/2011. Profitability is increasing against the prior year but the ratio to debt is still high.
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The Glazer family which bought Man U back in 2005 for £790m will retain control despite the IPO because they will create an A and B share structure with the B shares having 10 times the voting right as the A shares.
One big question is why the shares are being offered in New York. The company certainly considered a sale in Singapore but the financial crisis that swept world markets last year scotched that option. The logic of an Asian listing was that it would offer ownership rights to one of Man U's biggest fan bases.
But going for the Big Apple over London is a major two-fingered salute to the UK. Perhaps the Glazers want investors acting with their heads and not their hearts.
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