Manchester United to become 'world's most valuable club'
Manchester United are on the verge of being rated the world's most valuable sports club, as they prepare to reveal the pricing of their initial public offering (IPO).
According to data compiled by the financial media groups Bloomberg and Forbes, a successful float by the club in New York would see United worth around three billion dollars, about twice the value of Spain's Real Madrid, once debts are factored in.
The offer would also make United about ten times as expensive as publicly traded European teams such as Juventus.
According to The Guardian, in total the Glazer family, Manchester United owners, is hoping to raise up to 332 million dollars by selling 16.6 million shares at a range between 16-20 dollars a share.
Half the proceeds of the sale will go towards paying down some of Manchester United's 437 million pound debt, while the other half will go directly to the Glazers, despite previous promises to use all cash raised to improve the club's balance sheet, the paper said.
Apart from raising money for the Glazers and to pay down the club's debt, a flotation will achieve the further aim of giving the club a financial valuation, which the Glazers will need if they are to cash in their investment by selling the club, the paper added. (ANI)