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Fuse Sport's Ben Heyhoe Flint on Manchester United's possible share sale in Asia
The BBC's sports editor David Bond says an initial public
offering (IPO) is one of a number of refinancing options the American
family is examining.
But, he says, they are only considering selling a minority stake - perhaps no more than 25%.
If successful, such a move could raise £400m ($657m).
The Old Trafford club was listed on the London stock market until it was taken over by the Glazers in 2005.
Small sale, big move
A partial share sale would mean that no outside person could take control of the club.
At the same time, it would provide the Glazers with much
needed revenues that would help pay down some of the debt that was taken
on to finance the takeover.
In March, Manchester United's
chief executive David Gill said that the club had net debt of £370m and
annual interest payments of £45m.
"They clearly need to relieve their debt burden from a
financial point of view," Ben Heyhoe Flint of Fuse Media told the BBC's
Asia Business Report.
"Financially, this is going to make sense," he added.
"They're going to open the door to fans by creating a
foothold in Asia. They're also going to open up channels to new
sponsors. I see this as a more aggressive move to make an even bolder
presence in Asia."
Growing market
United has more than 300 million fans around the world and more than 190 million of those are in Asia.
The region has become a growth area for the club and other Premier League teams.
Football is one of the fastest growing sports in Asia
"Tottenham Hotspur are coming through here prospecting; Chelsea
is setting up management operations," Fuse Sport's Mr Heyhoe Flint
explained.
"All of them want to engage with the fans out here, find
partners, increase their TV distribution and increase their commercial
partnerships."
Analysts said that the rise in football's popularity may help
Manchester United get a better price for its shares by tapping into
this new fan base.
"They will pay a higher price to say they own a piece of
Manchester United," said Stephen Schechter, chairman of London-based
investment bank Schechter Co.
He added that the Glazer family would also be keen to free up capital for reasons other than just servicing their debt.
"Obviously the leverage has been bothering the Glazers so
they want to use whatever cash they get in to get a return for
themselves on capital, to reduce leverage and to give Manchester United
cash to go out and buy players," Mr Schechter said.
No comment
Manchester United and chief executive David Gill have not commented on the plans for a share sale in Asia.
In March, Manchester United's parent company said it made a
loss of £108.9m in 2009-10. Red Football Joint Venture is the Glazer
family parent company that owns the Old Trafford club.
Its loss, for the year to the end of July 2010, included
one-off costs from setting up a £526m bond scheme last January to
replace outstanding debts of £509m.
There was also a drop in player sale income, compared to the previous summer when Cristiano Ronaldo was sold.
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