Manchester United (MANU) : 7-year performance

 

Manchester United (MANU) reported earnings on Tue 25 Sept 18 (b/o)

** charts after earnings **

 

Manchester United misses by GBP 0.02, beats on revs; guides FY19 revs in-line 

• Reports Q4 (Jun) loss of GBP0.01 per share, excluding non-recurring items, GBP0.02 worse than the single analyst estimate of GBP0.01; revenues fell 16.4% year/year to GBP147.1 mln vs the GBP141.93 mln S&P Capital IQ Consensus. Commercial revenue for the year was 276.1 million, an increase of 0.6 million, or 0.2%, over the prior year. Adjusted EBITDA of 177.1 million.
• Co issues in-line guidance for FY19, sees FY19 revs of GBP 615-630 mln vs. GBP625.11 mln S&P Capital IQ Consensus. Co sees FY19 adjusted EBITDA of GBP 175-190 mln.

Manchester United (MANU) - 2 weeks after IPO

Manchester United (MANU) started trading on the NYSE on 10 August 2012

Manchester United Executives ring the Opening Bell

Experience Square outside of the Exchange has become a soccer field for the day.

A general view of the Manchester United facade before the IPO at the New York Stock Exchange on August 10, 2012 in New York City. 

Manchester United (MANU) prices at $14 a share, below IPO range

Manchester United Ltd. (MANU) priced 16.7 million shares at $14 a piece for its initial public offering late Thursday.

That's well below the expected range of $16 to $20, but many analysts thought that range too high in the run-up to the offering. Half the proceeds will go to help paying down Man United's sizable debt and the other half will go to the owners of the team, the Glazer family.

Manchester United fans hold up a protest banner before a homefield soccer match.

Underwriters will also have the option of selling up to an additional 2.5 million shares with those proceeds going to the Glazers. The stock will begin trading Friday on the NYSE. While the IPO will still go ahead on Friday, the anti-Glazer crowd will at least have something to crow about – late Thursday, the club said it was pricing its shares at $14 each, below the $16-$20 range the owners were hoping for.

 What has so outraged fans – aside from the continued Glazer ownership, of course – is that the Americans have backtracked on a promise that all the money raised from a stock listing would go to pay down the roughly $650 million debt the club carries from their leveraged purchase of the team. The new plan will see only half the money used to pay down the debt, leaving the rest for Malcolm Glazer and his sonsto feast on. This isn’t the only way the owners will benefit: As the Guardian points out, the listing will put a clear value on the club should they wish to sell, one that, even at a lower share price, is considerably more than the rumored offers of about $1.6 billion they have received in the past couple of years.

Manchester United reveals IPO details; announces seven-year shirt sponsorship with GM

English soccer club Manchester United on Monday revealed details of its long-awaited initial public offering.

• It plans to offer 16.7 million shares on the New York Stock Exchange
• Shares will be priced between $16 and $20 a share, meaning the IPO could raise more than $330 million.
• The club's ticker will be MANU.

Manchester United is owned by the American Glazer family, which took over the club using mostly debt; according to the filing, there is still £437 million ($687 million) of borrowings outstanding; finance costs in 2011 alone were £51 million.

The Glazers will retain control of the club through its ownership of Class B shares, which will have 10 times the voting power of the stock sold to the public.

The club was listed on the London Stock Exchange from 1991 until the Glazers completed a leveraged buyout valued at $1.47 billion in June 2005.

The Glazers also own the NFL's Tampa Bay Buccaneers.

Manchester United have agreed a seven year deal with Chevrolet, which will see the car manufacturer replace Aon as the club's official shirt sponsor.

Chevrolet is the current Official Car Partner of the Red Devils, and will become only the fifth shirt sponsor in the club’s 134 year history, at the beginning of the 2014/15 season.

The team just three years ago signed a jersey agreement with then-Chicago-based insurance brokerage Aon Corp., which has since moved its headquarters to London to gain proximity to financial markets and benefit from a lower tax burden.

That deal has been estimated to be worth more than $30 million annually — the most lucrative jersey sponsorship deal in soccer history — and GM is reportedly shelling out between $60 million and $70 million annually, according to Reuters, to become the fifth jersey sponsor in the team's history and advertise to its estimated following of 659 million people.
It's worth noting that Man U has now signed its second consecutive American company, in line with the efforts of several European soccer clubs that are trying to grow fans in the United States.

Manchester United plans a $1 billion IPO in Singapore

Manchester United’s owners have appointed Credit Suisse to prepare for a $1bn partial flotation, an outcome that would go a long way towards establishing a true valuation of the Premier League champions.

Two people familiar with the plan said the flotation would take place in Singapore. Another person said the plan was for 25-30 per cent of the club to be made available.

Credit Suisse has been hired to lead the listing process, as sole global co-ordinator and bookrunner, according to people familiar with the matter. Credit Suisse declined to comment, while Manchester United said: “We don’t comment on market speculation.”

The Glazer family, the US-based owners of United, have long believed that the club was worth more than £2bn ($3.3bn), although one person with knowledge of the flotation plan said the Glazers had been advised that a partial flotation could establish a value of £1.7bn.

Manchester United's Nemanja Vidic (C) lifts the trophy with teammates after their FA Community Shield soccer match against Manchester City at Wembley Stadium in London August 7, 2011.

Winning the United IPO will be regarded as a major coup by the Singapore Exchange, which has invested significant effort in seeking to attract substantial listings from overseas as part of its “Asian Gateway” strategy.

The SGX has traditionally been regarded as a poor relation of the much bigger Hong Kong market, which benefits from a flow of mainland Chinese listings and was initially expected to win the flotation.

The SGX is also understood to have been chosen as a listing venue by Fitness First, the UK gym chain, which hopes to raise about $500m in an IPO that has been delayed by market conditions.
However, Hong Kong remains the Asian exchange of choice for many overseas companies, having won the $11bn IPO of Glencore, the Swiss-based commodities group, in May.

United have been champions of England for a record 19 times, and have strengthened their squad with a number of players in the summer transfer window, establishing the club as firm favourites to retain the Premier League title.

NET LOSS
One source said the loss-making club had switched to Singapore from Hong Kong, which has become the venue of choice for global brands such as fashion house Prada SpA and cosmetics maker L'Occitane International, but did not give a reason.

Hong Kong bars unprofitable companies from listing on its exchange. United's 2010 full-year results showed gross debt attached to the club standing at 522 million pounds, with a net loss of 84 million pounds.

The Glazer family, which took United private following their 790 million pounds ($1.3 billion) takeover in 2005, has endured a turbulent spell at the helm of the Old Trafford side. Fans have taken to wearing the green and yellow colors of United's predecessor club Newton Heath in an anti-Glazer campaign.

The Americans have been criticized by supporters who are uncomfortable with the club's levels of debt, despite continued on-field success, most recently last season's record 19th league title.

A multi-million pounds summer signing spree of players including Ashley Young from Aston Villa may have helped assuage fan concerns, along with an opening day 2-1 league victory against West Bromwich Albion.

The IPO of a globally recognized brand such as Manchester United would be a coup for Singapore, which has been competing with Hong Kong for international listings.

Despite winning the biggest IPO in Asia Pacific during the first half of 2011 -- the $5.45 billion deal from Hutchison Port Holdings Trust in March -- Singapore's $7.1 billion in IPO proceeds in the period paled in comparison with Hong Kong's $13.4 billion, according to Thomson Reuters data.