Manchester United Football Club has signalled its intention to list on the US Stock Exchange in the hope of raising around $100m (just short of £64m). Despite being football's most valuable club (according to Forbes magazine), it's got a lot of debt that it needs to service so it can keep up with rival clubs across Europe. Under new UEFA rules clubs have to breakeven or they'll be ruled out of 2014-15 comps.
The Glazer family took the club over in 2005 when its debts were worth around £423 million. Today's filing with the Securities and Exchange Commission is a big turnaround from the recent throw over of plans to scrap the sale of $1bn worth of shares on the Singapore stock market.
We don't know how many shares will be listed of the stock price but the filing with the US government said "… our indebtedness could adversely affect our financial health and competitive position" and reduce "the availability of our cash flow to fund the hiring and retention of players and coaching staff."
With its eyes firmly on a 20th league title win, Man U seems a little unnerved by the spending power of the new owner of its local rival, Manchester City. Sheikh Mansour bought the club and has been flashing his cash. That was sure to be a contributor to the morale and playing tactics which led Man City to Premier League victory last season.
Under the reorganization, the team would become a wholly owned subsidiary of Manchester United Ltd., a newly formed holding company based in the Cayman Islands.
I'm Marverine Cole. For more news go to ibtimes.co.uk