More Reason Man United Fans To Hate Glazer
When the Glazers made a call to take Man United public again most of the fans approved it. Many fans saw this as the way to made Man United debts free again and the same time reducing the Glazer control at Old Trafford.
When there was planned to float Man United shares at Singapore Stock Exchange with aimed to raise USD1 billion, again it was most welcomed by the fans. The money from the IPO surely more than enough to clear all the debts. The huge surplus could be used to sign more world class players.
However the IPO in Singapore was halted and cited the volatile market as the reason. Suddenly the Glazer announced the IPO will be at US, their homeland. This time the IPO was aimed to raise only USD 383 million by selling a 10.2% stake in the club. A lot of amount been reduced and this time all debts cannot be cleared. This had raised a few eyebrows of many fans. Man United said to have USD 650 million debts after the Glazer took over.
It angry more Man United fans when IPO prospectus claimed only to benefit the higher power people in Man United including Sir Alex Ferguson. From the IPO it was said that the Glazer had reneged on their promise to use all the funds from a successful flotation to reduce United’s debts. The new plan under the IPO outline that the Glazer will use only USD 114.4 million of any proceeds to reduce the debt, and "pocket a similar sum for themselves." If demand for the IPO "proves high, the Glazers could receive" up to USD216.7 million.
The plan also stated that under the terms of the listing, the Glazers "will retain control of United through their ownership of Class B shares, which will have 10 times the voting power of the stock sold to the public."
This mean the Glazer will pocket a lot of money, Man United still in huge debts and the best part is they still control the club. They used others money to reduce debts but in same time increasing their personal wealth.
But that not all. According to the expert the Man United had the potential for scandal. Former U.S. Sen. Paul Sarbanes who was the architect for famous Sarbanes-Oxley Act, said this when been asked regarding Man United IPO. Sarbanes referring this to new Jobs Act 2012 that also governed in Man United IPO. The funny thing was Man United listing was qualified as an "emerging-growth company" under terms of the Jobs Act.
Meanwhile his friend Michael Oxley ridiculed the IPO by saying "I read an article the other day where Manchester United football team is considering an IPO here in the United States. They are a startup company that has only been around 120 years."
US law under securities act define "emerging-growth company" as means an issuer that had total annual gross revenues of less than USD 1,000,000,000.
Oxley added "They're going to start an IPO here, but all the jobs are going to be in the UK. That doesn't strike me as job creating,"
Jobs Act 2012 is a law intended to encourage funding of United States small businesses by easing various securities regulations. It passed with bipartisan support, and was signed into law by the President of the United States on 5 April 2012. It is also aimed to increase American job creation and economic growth by improving access to the public capital markets for emerging growth companies.
So it is relatively easy to understand what been stated above. No need to elaborate more about this.
Finally what the hell is going on right now? Answers demanded.