In the red: Man United filing shows debt buying

Owners both borrowed from and bought debt in the English soccer club in recent years.

NEW YORK: Manchester United’s filing for an initial public offering (IPO) of shares in the US is shedding fresh light on the way its owners, the Glazer family, both borrowed from and bought debt in the English soccer club in recent years. American entrepreneur Malcolm Glazer and his six children, who took control of the English soccer club in 2005, have in the past been criticised by fans for saddling the club with too much debt. Now the filing shows that the Glazer family was not only borrowing from the club but that at least one son also bought the club’s debt, earning a higher rate of return on that money than the family was paying on its borrowings. “The historical dealings between family members are something for investors to be aware of before they decide to invest in the IPO,” said Thomas Conaghan, an attorney at McDermott Will & Emery, who represents companies in IPOs.

Published in The Express Tribune, July 8^th, 2012.