Manchester United drum up interest ahead of IPO

Manchester United’s commercial team launched the club’s investor roadshow on Thursday ahead of an Initial Public Offering (IPO) in New York this August. The team, comprising chief strategist – Edward Woodward, commercial director – Richard Arnold and operations head Michael Bollingbrook, is meeting potential investors in Asia, Europe and the US ahead to drum up interest in the flotation ahead of pricing next week.

MANCHESTER, ENGLAND – JANUARY 23: Manchester United fans, wearing green and gold scarves, protest against the Glazers, current owners of Manchester United (Photo by Julian Finney/Getty Images)

In a performance of undoubted woodenness, total lack of charisma and no little bluster, the trio kicked off the tour that the Glazer family hopes will prompt investors to pump more than $300 million into clubfamily coffers.

Key points:

• The United team claim that revenue growth will come from retail and commercial sectors in the future
• Bollingbroke repeatedly stresses that Financial Fair Play (FFP) will benefit the club – presumably concerned that UEFA’s flag-ship programme may not have teeth
• Woodward says that deal with General Motors is “a world record” shirt sponsorship – it’s put at anywhere between £25 and £54 million per season by the press
• Woodward says that commercial revenue could account for more than 50 per cent of total revenues inside three years – it is currently around 30 per cent
• Bollingbrooke says historic net player expenditure over 10-15 years is £20-25 million – it is, of course, substantially lower during the Glazer regime
• “We are giving guidance at the moment,” says Bolingbroke, “that the current transfer period could result in net expenditure nearer £40 million
• “Matchday is our annuity business,” says Woodward – United not taking the fans for granted then. Much.

Steve Jobs it isn’t, but don’t take Rant’s word for it, view the video presentation and read the prospectus here.