Will the Glazers sell?

Manchester United chat
User avatar
Jason
Star Man
Posts: 658
Joined: 9 years ago

swampash wrote: 3 months ago Sorry, but can anyone make sense of the original suggestion behind the bids - specifically the reference suggesting that they are predicated on the belief the 'Glazers would sell for 6 Billion'. Where does that valuation for the Glazers shares come from? Is it really the multiple of the number of their shares times the share price or is it simply wrong?
It just sounds like a ridiculous figure to me for what is a pretty distressed asset.
Market Cap is the total shares * current share price. But in any takeover, generally the bid is made over the current price to make it worth while to the selling party to do the deal.

As has been mentioned Utds cap in only about 2billion right now, but that doesnt factor in the "Prestige" and future earning potential if something like the ESL takes off ( and we are still able to get into it in 5 years time)

The Glazers can put any dollar value on those, to come up with a price, but like I said, I doubt they would sell for anything below 4bn.
User avatar
swampash
Legend
Posts: 2373
Joined: 8 years ago

Okay, I get that we are probably worth more than Chelsea, so maybe 6 Billion is right.
What level of return on capital would a buyer be looking for though?
Say 5%?
That's 300 Million a year in dividends and/or management charges. Anyone know how that compares to the Glazers annual take?
User avatar
Jason
Star Man
Posts: 658
Joined: 9 years ago

swampash wrote: 3 months ago Okay, I get that we are probably worth more than Chelsea, so maybe 6 Billion is right.
What level of return on capital would a buyer be looking for though?
Say 5%?
That's 300 Million a year in dividends and/or management charges. Anyone know how that compares to the Glazers annual take?
Slightly different for the Glazers, in that they bought the club with cash mortgaged against the asset itself.

I think the Glazers "Only" stumped up with £100million of their own as part of the original take over.

Not an expert on the figures, but its widely reported they have taken out 154 million in dividends in past 10 years alone. This doesnt cover the 266million that was taken in dividends in 2010.

So thats about 420 million. Since 2005, that puts their annual return at about 8.5% of their orignal 100.

Never mind the fact that the "Asset" has grown in that time from 600odd million to 2/3/4 billion +, so they have taken out 420million, and will walk away with at least 3billion profit from an original investment of 100million.
User avatar
swampash
Legend
Posts: 2373
Joined: 8 years ago

Thanks Jason.
I guess that means any new buyer will also have to go for a leveraged buy out? In other words tons of bank interest payments in the future...?
Fuck the Glazers
Legend
Posts: 7823
Joined: 9 years ago

This is a good chat. The word on wall street is that the Glazers want to sell some shares. There's a theory that it could be to pay for a new stadium. I wouldn't be surprised - a shiny new ground would be a huge sweetener to buy off fans (again - Sancho, Ronaldo etc).

Fuck the Glazers
Legend
Posts: 7823
Joined: 9 years ago

bman2 wrote: 3 months ago But the Glazers are not going to want to sell a minority share to a competent guy with opinions, like Ratcliffe. They’ll want to flog it to some private equity firm. They’ll retain full control. They’ll get a cash injection to try to repair some of the damage they’ve done: spend it the stadium, buy some players. But their incompetence is never going to change, so the money will be wasted. At the same time, the club will gauged even more for cash and dividends for the private equity firm.
You could be right. I think we need a reality check. We might not get a single owner, it might be another set of cunts that just want to skim profit.

More on it here

Apollo Leads Private Equity Interest in Manchester United Stake

https://www.bloomberg.com/news/articles ... ited-stake
User avatar
bman2
Legend
Posts: 4116
Joined: 9 years ago

Sid wrote: 3 months ago This is a good chat. The word on wall street is that the Glazers want to sell some shares. There's a theory that it could be to pay for a new stadium.
Arnold strongly hinted at exactly that in that recorded chat at the pub. I remember he specifically said new investment was needed to renovate the stadium or build a new one.

This Glazer search for investment might not even have anything to do with this season’s early results or the fans’ outrage. They probably don’t even pay close attention to that stuff.
Fuck the Glazers
Legend
Posts: 7823
Joined: 9 years ago

bman2 wrote: 3 months ago
Sid wrote: 3 months ago This is a good chat. The word on wall street is that the Glazers want to sell some shares. There's a theory that it could be to pay for a new stadium.
Arnold strongly hinted at exactly that in that recorded chat at the pub. I remember he specifically said new investment was needed to renovate the stadium or build a new one.

This Glazer search for investment might not even have anything to do with this season’s early results or the fans’ outrage. They probably don’t even pay close attention to that stuff.
I think you've cottoned on to it. The Glazers have put the feelers out on wall street for investment - that much we know. And it's likely to be for US investment, not to sell. I think Ratcliffe knows this as well as he said he's open to buy a bunch of shares first and foremost, and, if they're willing, the entire club. The latter was said almost out of hope than anything. That's the impression I got anyway.

We might be putting two and two together and getting 8 based on the clues we have. But this feels much more likely than the Glazers selling.
User avatar
swampash
Legend
Posts: 2373
Joined: 8 years ago

I can’t really see the Glazers selling their own shares to refurbish the stadium. Not their way of doing things. They’re more likely to stuff the club with more debt if you ask me.
User avatar
bman2
Legend
Posts: 4116
Joined: 9 years ago

swampash wrote: 3 months ago I can’t really see the Glazers selling their own shares to refurbish the stadium. Not their way of doing things. They’re more likely to stuff the club with more debt if you ask me.
I was wondering if the supposed plan to let fans buy shares is just another cash grab. Haven’t heard anything about that since, of course.
Post Reply