What is this going to mean for decision making and general ownership? Why is Fergie getting shares in the club? Is he buying them?
ALL issues relating to the bond issue and club finances
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What is this going to mean for decision making and general ownership? Why is Fergie getting shares in the club? Is he buying them?
I think Fergie is a very trustworthy person and personally, any decision he makes is fine with me. Yes, he may have lied about things in the past but I always trust its for the right reasons.
I got shares in my company last year as part of my bonus package. I'm guessing it's relatively standard practice.
Does anything that has happened in the last day or so affect what we may spend on players over the next little while?
Yes massively. The last two days have been massively significant and will shape the future success of Manchester United for sure.
One of the leading financial blogs out there:
http://www.zerohedge.com/news/have-...-can-qualify-lose-money-manchester-united-ipo
http://www.zerohedge.com/news/have-...-can-qualify-lose-money-manchester-united-ipo
Well I'm deducing it by the fact that he explained that he was frustrated at the PLC's lack of backing him sometimes. That being the case I'd presume he's more frustrated that he's is being backed less, but other things have made up for it. More control might be one, getting rid of the Irish duo might be another and I'm sure money is another.
There are a lot of imponderables in any comparison between where we are now under the Glazers, and where we would be if the Plc had continued.
The Glazers have grown commercial revenue very quickly. I saw figures recently showing that those revenues hadn't increased at all in the last years of the Plc.
If you look at our financial situation at the moment, it's not clear why we'd be better off with the Plc. We're making about £110M in annual profits, about £35M of which is earmarked to leave the club as interest on the debt. The Glazers take no dividend from the remainder. Does anyone really believe that if we were making £110M in profits under the Plc., Magnier, MacManus etc. wouldn't take at least £35M in dividends? Why does it matter whether money leaves the club as dividends or bond interest?
The attempt to drive the Glazers from the club has serious risks which most fans choose to ignore. Who knows who our future owners might be? If they're businessmen, as is very likely, they might well think that what's sauce for the goose is sauce for the gander. If the Glazers can acquire the club on 60/70% borrowed money and make a great success, why shouldn't they do the same? With the club's present valuation of ca. £2B, we might find ourselves exchanging £350M of present debt for £1,200M.
Or maybe he is receiving the backing but just refuses to spend money like some idiots would like us to.
I doubt it... It's much more likely that you're terribly wrong and he's been after the likes of Sanchez, Hazard, Sneijder, Nasri, Villa, Benzema, Silva and this season Lucas/RVP (as the man himself has admitted in most cases).
It's clear Fergie wants to add real quality and has been looking for several season's now. It's also clear whoever is negotiating does not have the tools at their disposal to complete said deals. Lets hope this Summer will be different and whoever is negotiating is given said tools and acquires the kind of player Fergie has been eying for a while.
Michael Moritz, a Cardiff-born Silicon Valley investor who is also a Manchester United fan and critic of the Glazers, said: "The anti-takeover provisions further protect the Glazers. It is the financial equivalent of armed robbers leaving the scene of a crime and throwing nails on the road to stop pursuers.A pound of potatoes will be a better investment than the purchase of shares in Manchester United's stock offering. The only people who will be better off with this offering are the Glazers
Some previous posters seemed to believe that having multiple classes of stock and not paying dividends might be a problem for the IPO. I've pulled some extracts from registration statements for successful IPOs.
From Skype S.à r.l. IPO (Mar 2011)
From Yelp! INC. IPO (Nov 2011)
From Tesla Motors Inc. IPO (Jan 2010)
From Google Inc. IPO (Apr 2004)
From Zynga Inc. IPO (jul 2011)
From LinkedIn Corporation IPO (Jan 2011)
[Edit: Should have added that these all came from the "Risk Factors" sections.]
From Skype S.à r.l. IPO (Mar 2011)
Our substantial indebtedness could adversely affect our financial health and our ability to raise additional capital, limit our ability to react to changes in the economy or our industry, expose us to interest rate risk to the extent of our variable rate indebtedness and prevent us from fulfilling our obligations under our indebtedness.
Our credit agreement imposes significant restrictions on our business and the lenders are entitled to take possession of and sell the assets we have pledged as collateral if there is a default under the credit agreement.
After the completion of this offering, we do not expect to declare any dividends in the foreseeable future. Accordingly, investors may only realize future gains on their investments if the price of their ADSs increases, which may never occur.
After the completion of this offering, we do not anticipate making any cash or other distributions on our ordinary shares in the foreseeable future.
Our credit agreement imposes significant restrictions on our business and the lenders are entitled to take possession of and sell the assets we have pledged as collateral if there is a default under the credit agreement.
After the completion of this offering, we do not expect to declare any dividends in the foreseeable future. Accordingly, investors may only realize future gains on their investments if the price of their ADSs increases, which may never occur.
After the completion of this offering, we do not anticipate making any cash or other distributions on our ordinary shares in the foreseeable future.
Risks Related to this Offering and Ownership of Our Class A Common Stock
The dual class structure of our common stock has the effect of concentrating voting control with those stockholders who held our stock prior to this offering, including our founders, directors, executive officers and employees and their affiliates, and limiting your ability to influence corporate matters.
Our Class B common stock has 10 votes per share, and our Class A common stock, which is the stock we are offering in this initial public offering, has one vote per share. Stockholders who hold shares of Class B common stock, including our founders, directors, executive officers and employees and their affiliates, will together beneficially own shares representing approximately % of the voting power of our outstanding capital stock following this offering.
We do not intend to pay dividends for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors.
The dual class structure of our common stock has the effect of concentrating voting control with those stockholders who held our stock prior to this offering, including our founders, directors, executive officers and employees and their affiliates, and limiting your ability to influence corporate matters.
Our Class B common stock has 10 votes per share, and our Class A common stock, which is the stock we are offering in this initial public offering, has one vote per share. Stockholders who hold shares of Class B common stock, including our founders, directors, executive officers and employees and their affiliates, will together beneficially own shares representing approximately % of the voting power of our outstanding capital stock following this offering.
We do not intend to pay dividends for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors.
After the completion of this offering, we do not expect to declare any dividends in the foreseeable future.
After the completion of this offering, we do not anticipate declaring any cash dividends to holders of our common stock in the foreseeable future. Consequently, investors may need to rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors seeking cash dividends should not purchase our common stock.
After the completion of this offering, we do not anticipate declaring any cash dividends to holders of our common stock in the foreseeable future. Consequently, investors may need to rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors seeking cash dividends should not purchase our common stock.
The concentration of our capital stock ownership with our founders, executive officers, employees, and our directors and their affiliates will limit your ability to influence corporate matters.
After our offering, our Class B common stock will have ten votes per share and our Class A common stock, which is the stock we are selling in this offering, will have one vote per share.
We do not intend to pay dividends on our common stock.
We have never declared or paid any cash dividend on our capital stock. We currently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future.
After our offering, our Class B common stock will have ten votes per share and our Class A common stock, which is the stock we are selling in this offering, will have one vote per share.
We do not intend to pay dividends on our common stock.
We have never declared or paid any cash dividend on our capital stock. We currently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future.
The three class structure of our common stock has the effect of concentrating voting control with those stockholders who held our stock prior to this offering, including our founder and Chief Executive Officer and our other executive officers, employees and directors and their affiliates; this will limit your ability to influence corporate matters.
Our Class C common stock has votes per share, our Class B common stock has votes per share and our Class A common stock, which is the stock we are offering in this offering, has one vote per share. The holders of Class B common stock and Class C common stock, including our founder and Chief Executive Officer, Mark Pincus, and our other executive officers, employees and directors and their affiliates, will collectively hold approximately % of the voting power of our outstanding capital stock following this offering.
We do not intend to pay dividends for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
Our Class C common stock has votes per share, our Class B common stock has votes per share and our Class A common stock, which is the stock we are offering in this offering, has one vote per share. The holders of Class B common stock and Class C common stock, including our founder and Chief Executive Officer, Mark Pincus, and our other executive officers, employees and directors and their affiliates, will collectively hold approximately % of the voting power of our outstanding capital stock following this offering.
We do not intend to pay dividends for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
The dual class structure of our common stock as contained in our charter documents has the effect of concentrating voting control with those stockholders who held our stock prior to this offering, including our founders and our executive officers, employees and directors and their affiliates, and limiting your ability to influence corporate matters.
Our Class B common stock has 10 votes per share, and our Class A common stock, which is the stock we are offering in this initial public offering, has one vote per share. Stockholders who hold shares of Class B common stock, including our founders, and our executive officers, employees and directors and their affiliates, will together hold approximately % of the voting power of our outstanding capital stock following this offering, and our co-founder and Chair, Reid Hoffman, will control approximately % of our outstanding Class A and Class B common stock, representing approximately % of the voting power of our outstanding capital stock, following this offering, and therefore will have significant influence over the management and affairs of the company and over all matters requiring stockholder approval, including election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets, for the foreseeable future.
We do not intend to pay dividends for the foreseeable future.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
Our Class B common stock has 10 votes per share, and our Class A common stock, which is the stock we are offering in this initial public offering, has one vote per share. Stockholders who hold shares of Class B common stock, including our founders, and our executive officers, employees and directors and their affiliates, will together hold approximately % of the voting power of our outstanding capital stock following this offering, and our co-founder and Chair, Reid Hoffman, will control approximately % of our outstanding Class A and Class B common stock, representing approximately % of the voting power of our outstanding capital stock, following this offering, and therefore will have significant influence over the management and affairs of the company and over all matters requiring stockholder approval, including election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets, for the foreseeable future.
We do not intend to pay dividends for the foreseeable future.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
[Edit: Should have added that these all came from the "Risk Factors" sections.]
Ravelston are you for real?
He's an accountant - it's an alternative reality.
Got way too much time on my hands.
Skype - bought by Ebay who made a loss then bought by a PE company who couldnt beleive their luck when MS came calling with a ridiculous offer. MS the ones who wastes $6bn on Aquantive causing their first loss since being a public company.
Tesla motors- asking for bailout money - $465m
Zynga - you been watching their shares crash in the last week to $3 and their CEO Pincus is now under investigation for insider trading.
Pick a better bunch next time.
Tesla motors- asking for bailout money - $465m
Zynga - you been watching their shares crash in the last week to $3 and their CEO Pincus is now under investigation for insider trading.
Pick a better bunch next time.
Impressive work there, to be fair.
We need more educated voices on this topic rather than the usual agenda bollocks.
We need more educated voices on this topic rather than the usual agenda bollocks.
What's this got to do with anything? The point is that the debt related, multiple stock class and dividend warnings had no effect on the success of the IPO.
And what has Aquantive got to do with Skype - that MS screwed up one purchase is no indicator of the success of others.
Hopefully you didn't personally invest in Tesla or Zynga.
It depends what you determine as a succesful IPO. It seems currently they are pump and dumping them.
MS overpaid for both - thats the link between Skype and Aquantive. MS hasn't been too great when it comes to purchaes. Apple is a better example.
Nope didnt touch Zynga or Tesla or Facebook.
I prefer the value investing princples of Benjamin Graham.
The point you make re - the effect of the multiple stock class - you need to also factor in the time the IPO were done - if it was in a bubble or was their demand for these tech stocks.
You can't just use them as examples of it having no effect.
Not criticising you - just making a point.
They are pretty but not very informative. Apart from comparing 1998-2005 (8 years) with 2006-2012Q3 (a bit less than 7 years) they present incomplete information and hence only tell a partial story. A more complete set of figures is below for anyone who's interested.
There are two main take-aways: 1) the most the Glazers could have cost us over the period is around £147m, and 2) since the takeover, we've spent almost the same proportion of our total income (Revenue + Player Sales) on total player costs (Staff Costs + Player Purchases) that we did for the seven years before the takeover (around 58%).
The "Glazer cost" is probably an overestimate. There's an implicit assumption that the PLC could have generated identical revenues to those that have actually occurred since the takeover, which is unlikely for a variety of reasons. (There's also an assumption that taxes and dividends would scale in proportion to revenues.) It also doesn't take into account increases in Cash and Marketable Securities (mostly because it's virtually impossible to do using Q3 figures). A little more accuracy in either area would reduce the "cost" markedly. (Note that this is the extra money that might have been available over the period 2006-2012Q3 had there not been a takeover. It says nothing about costs that might arise in the future or imputed costs that have had no cash flow impact on the club (adding those in is how you get up toward the oft quoted £500m figure).
The makeup of "total player costs" has changed somewhat since the takeover, with salaries forming a larger component relative to transfer fees than in the earlier period. When you look at the bigger picture in this way, I think it becomes apparent that "net spend" is a pretty meaningless figure.
Hadn't seen this as a result of the fallout from the IPO new, but as Red-Indian drew my attention to it, I will respond.
[WARNING for others: Really boring shit follows. Move on.]
Pie charts deal with proportions, not absolutes- we do not need to confine ourselves to equal interval comparisons. Reinvestment under the PLC was consistently strong….divestment (dividends and CT) since inception ran (as a percentage of cash profits) ran at 34%. For the last 7 years, the rate was the same. When dealing with absolutes, equal intervals are required as can be inferred from my spiel about Net Spend.
Those charts [not prepared by me, Rood] illustrate “Use of Funds” before and after the takeover, nothing more, nothing less. They are “complete” in that regard.
(Visually, your presentation isn’t a patch on my infographics. Aesthetically, it’s about as appealing as the receipt received after a heavy shop at ASDA. So there!)
As for your claim ("the most Glazers could have cost us over the period is around £147m”): Its delivered with certainty and conviction that but the figure is woefully spurious given the amount of ”ifs, ands and buts” used in its determination.
The reverse cash flow method will only yield correct values if you allow for movement in cash and WC and include all items. The method used to derive your OPLNAP figures is a bit like looking at the aforementioned ASDA receipt and deducing the price paid for turnips by deducting from the total bill the price of anything that isn’t a turnip…… only the method will never deliver the accurate stated cost of turnips because certain items are ignored.
Your value for the 99-2005 "OPLNAP" doesn't square with the actual cash-out in tax and dividends as not all of the 1999-2005 "OPLNAP" was siphoned off in dividends and tax. The actual combined figure for tax and dividends paid during that period is 105m. (I don't understand why you would even consider using an estimate for a known actual in your projection). Using my “pretty but not very informative” graphic together with your estimate of operating profit would give an estimated cash-out of 112m- higher than the actual, but certainly not as inaccurate as your 131m. Rolling the actual figure forward at the chosen rate gives a projected "OPLNAP" of 186m.
The fact that your projected "OPLNAP" OF 233M mirrors your estimate from recasting the financial statements is quirky and probably an interesting example of confirmation bias at work.
A correct working for the other period gives an "OPLNAP" for the 2006-2012 period of about 410m, producing a revised Glazer cost of about 225m- a significant increase on your estimate.
As your previous explict approach will reveal, that isn't the last word on Glazer costs; certain items above the profit line do not feature in your new approach. Perhaps, you should have mentioned this with your other ”ifs, ands and buts”.
If by "Marketable securities" you are referring to the bond then the IPO prospectus is pretty clear.
Some previous posters seemed to believe that having multiple classes of stock and not paying dividends might be a problem for the IPO. I've pulled some extracts from registration statements for successful IPOs.
From Skype S.à r.l. IPO (Mar 2011)
From Yelp! INC. IPO (Nov 2011)
From Tesla Motors Inc. IPO (Jan 2010)
From Google Inc. IPO (Apr 2004)
From Zynga Inc. IPO (jul 2011)
From LinkedIn Corporation IPO (Jan 2011)
From Skype S.à r.l. IPO (Mar 2011)
Our substantial indebtedness could adversely affect our financial health and our ability to raise additional capital, limit our ability to react to changes in the economy or our industry, expose us to interest rate risk to the extent of our variable rate indebtedness and prevent us from fulfilling our obligations under our indebtedness.
Our credit agreement imposes significant restrictions on our business and the lenders are entitled to take possession of and sell the assets we have pledged as collateral if there is a default under the credit agreement.
After the completion of this offering, we do not expect to declare any dividends in the foreseeable future. Accordingly, investors may only realize future gains on their investments if the price of their ADSs increases, which may never occur.
After the completion of this offering, we do not anticipate making any cash or other distributions on our ordinary shares in the foreseeable future.
Our credit agreement imposes significant restrictions on our business and the lenders are entitled to take possession of and sell the assets we have pledged as collateral if there is a default under the credit agreement.
After the completion of this offering, we do not expect to declare any dividends in the foreseeable future. Accordingly, investors may only realize future gains on their investments if the price of their ADSs increases, which may never occur.
After the completion of this offering, we do not anticipate making any cash or other distributions on our ordinary shares in the foreseeable future.
Risks Related to this Offering and Ownership of Our Class A Common Stock
The dual class structure of our common stock has the effect of concentrating voting control with those stockholders who held our stock prior to this offering, including our founders, directors, executive officers and employees and their affiliates, and limiting your ability to influence corporate matters.
Our Class B common stock has 10 votes per share, and our Class A common stock, which is the stock we are offering in this initial public offering, has one vote per share. Stockholders who hold shares of Class B common stock, including our founders, directors, executive officers and employees and their affiliates, will together beneficially own shares representing approximately % of the voting power of our outstanding capital stock following this offering.
We do not intend to pay dividends for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors.
The dual class structure of our common stock has the effect of concentrating voting control with those stockholders who held our stock prior to this offering, including our founders, directors, executive officers and employees and their affiliates, and limiting your ability to influence corporate matters.
Our Class B common stock has 10 votes per share, and our Class A common stock, which is the stock we are offering in this initial public offering, has one vote per share. Stockholders who hold shares of Class B common stock, including our founders, directors, executive officers and employees and their affiliates, will together beneficially own shares representing approximately % of the voting power of our outstanding capital stock following this offering.
We do not intend to pay dividends for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors.
After the completion of this offering, we do not expect to declare any dividends in the foreseeable future.
After the completion of this offering, we do not anticipate declaring any cash dividends to holders of our common stock in the foreseeable future. Consequently, investors may need to rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors seeking cash dividends should not purchase our common stock.
After the completion of this offering, we do not anticipate declaring any cash dividends to holders of our common stock in the foreseeable future. Consequently, investors may need to rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors seeking cash dividends should not purchase our common stock.
The concentration of our capital stock ownership with our founders, executive officers, employees, and our directors and their affiliates will limit your ability to influence corporate matters.
After our offering, our Class B common stock will have ten votes per share and our Class A common stock, which is the stock we are selling in this offering, will have one vote per share.
We do not intend to pay dividends on our common stock.
We have never declared or paid any cash dividend on our capital stock. We currently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future.
After our offering, our Class B common stock will have ten votes per share and our Class A common stock, which is the stock we are selling in this offering, will have one vote per share.
We do not intend to pay dividends on our common stock.
We have never declared or paid any cash dividend on our capital stock. We currently intend to retain any future earnings and do not expect to pay any dividends in the foreseeable future.
The three class structure of our common stock has the effect of concentrating voting control with those stockholders who held our stock prior to this offering, including our founder and Chief Executive Officer and our other executive officers, employees and directors and their affiliates; this will limit your ability to influence corporate matters.
Our Class C common stock has votes per share, our Class B common stock has votes per share and our Class A common stock, which is the stock we are offering in this offering, has one vote per share. The holders of Class B common stock and Class C common stock, including our founder and Chief Executive Officer, Mark Pincus, and our other executive officers, employees and directors and their affiliates, will collectively hold approximately % of the voting power of our outstanding capital stock following this offering.
We do not intend to pay dividends for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
Our Class C common stock has votes per share, our Class B common stock has votes per share and our Class A common stock, which is the stock we are offering in this offering, has one vote per share. The holders of Class B common stock and Class C common stock, including our founder and Chief Executive Officer, Mark Pincus, and our other executive officers, employees and directors and their affiliates, will collectively hold approximately % of the voting power of our outstanding capital stock following this offering.
We do not intend to pay dividends for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation in the price of our Class A common stock.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
The dual class structure of our common stock as contained in our charter documents has the effect of concentrating voting control with those stockholders who held our stock prior to this offering, including our founders and our executive officers, employees and directors and their affiliates, and limiting your ability to influence corporate matters.
Our Class B common stock has 10 votes per share, and our Class A common stock, which is the stock we are offering in this initial public offering, has one vote per share. Stockholders who hold shares of Class B common stock, including our founders, and our executive officers, employees and directors and their affiliates, will together hold approximately % of the voting power of our outstanding capital stock following this offering, and our co-founder and Chair, Reid Hoffman, will control approximately % of our outstanding Class A and Class B common stock, representing approximately % of the voting power of our outstanding capital stock, following this offering, and therefore will have significant influence over the management and affairs of the company and over all matters requiring stockholder approval, including election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets, for the foreseeable future.
We do not intend to pay dividends for the foreseeable future.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
Our Class B common stock has 10 votes per share, and our Class A common stock, which is the stock we are offering in this initial public offering, has one vote per share. Stockholders who hold shares of Class B common stock, including our founders, and our executive officers, employees and directors and their affiliates, will together hold approximately % of the voting power of our outstanding capital stock following this offering, and our co-founder and Chair, Reid Hoffman, will control approximately % of our outstanding Class A and Class B common stock, representing approximately % of the voting power of our outstanding capital stock, following this offering, and therefore will have significant influence over the management and affairs of the company and over all matters requiring stockholder approval, including election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets, for the foreseeable future.
We do not intend to pay dividends for the foreseeable future.
We have never declared or paid any cash dividends on our common stock and do not intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
I wish this much effort had been put into questioning the Labour governments interference in the BSkyB bid.
Dumbarse summary of the current debt.
425m + some unknown fee lurking behind the scenes to which 75m of this float will go toward paying off and continue on?
Or is 425m + (whatevers being paid off now) stone cold stamped signed sealed delivered debt figure on United right now?
425m + some unknown fee lurking behind the scenes to which 75m of this float will go toward paying off and continue on?
Or is 425m + (whatevers being paid off now) stone cold stamped signed sealed delivered debt figure on United right now?
There seems to be a lot of negativity from financial bods about this IPO.
Can someone explain - in relatively simple terms - what the consequences might be for the club if it turns out to be a Facebook-style disaster?
Can someone explain - in relatively simple terms - what the consequences might be for the club if it turns out to be a Facebook-style disaster?
I'd imagine it would affect valuations about the worth of the club, for starters.
Which is a good thing for anyone who wants different owners, right?
Is there any other downside though? It's apparently underwritten, so they'll get their cash regardless. So the only people harmed if this goes horribly tits up will, presumably, be shareholders. There won't be any negative effect on cash-flow at the club.
Or are there other potential adverse consequences?
Is there any other downside though? It's apparently underwritten, so they'll get their cash regardless. So the only people harmed if this goes horribly tits up will, presumably, be shareholders. There won't be any negative effect on cash-flow at the club.
Or are there other potential adverse consequences?
Mainly, the company isn't affected as far as the cash they've already received.
Underwriters may get burnt and as could investors which is bad for any future fund raising prospects. Also, ability to raise cash in form of debt might get more expensive if your market cap has decreased. Smaller companies usually get more expensive loans. Reputation might get battered a bit.
But thats about it.
Ryanair have multiple classes of stock, don't they? And they certainly don't pay dividends (bar very rare instances of 'special dividends'). Yet their share price continues to rise and rise.
The underwritten bit is a puzzle to me. All we ever hear about these days is how difficult it is to raise capital. The "faceberg" fiasco is still fresh in everyone's mind and I've yet to read a single positive comment about the shares being issued in the IPO. Why would any bank underwrite this IPO if it's so widely assumed to be doomed to failure?
Conspiracy theory #1
Bonuses, wine and dine, handshakes and to hell with the consequences.
I'm not sure the banks have still learnt. It's the very reason why the world economy is in such turmoil.
This is certainly the method Glazers intends to improve own / the company's financial strength over time. The method is however only appropriate if share sale generates a return on invested funds and adequate funding for operation (purchase of players etc.)
Poor sales will thus be very unfortunate for them, and may provide implications for both Glazers (personal debt) and the club (assets).
Good sales, however, will provide good working conditions in the future. This of course assuming that there is a healthy relationship between the allocations for assets / investments / dividends.
No companies are celebrating that the owners take out dividends rather than invest. It must however be respected that investors want dividends on funds invested. Owners can thus not be measured or condemned based on such expectations.
This is good criteria for making an assessment imo:
Are we satisfied with the company's production?
Do we have adequate assets?
Do we have adequate funds for necessary investments?
Are the owners and the company agreed on plans for the future?
Is the dividends balanced in relation to healthy business operations, owners' investments and contributions?
At the time, I'm not worried or unhappy
Poor sales will thus be very unfortunate for them, and may provide implications for both Glazers (personal debt) and the club (assets).
Good sales, however, will provide good working conditions in the future. This of course assuming that there is a healthy relationship between the allocations for assets / investments / dividends.
No companies are celebrating that the owners take out dividends rather than invest. It must however be respected that investors want dividends on funds invested. Owners can thus not be measured or condemned based on such expectations.
This is good criteria for making an assessment imo:
Are we satisfied with the company's production?
Do we have adequate assets?
Do we have adequate funds for necessary investments?
Are the owners and the company agreed on plans for the future?
Is the dividends balanced in relation to healthy business operations, owners' investments and contributions?
At the time, I'm not worried or unhappy
Well someone there must see value in the stock. I'd like to see the analyst's model. But I'm pretty sure there are people sitting around who will be ready to invest in a company like United.
Frankly, football-love aside, as a business it has great potential. I think we've just seen the beginning of properly monetizing the brand and it has a lot of potential. Given the Glazers have shown an acute knack of converting everything to income, there will be some growth investors who like the theme of it. I wouldn't be surprised if the IPO was over subscribed.
I'm sure you're right. The Glazer has certainly done very thorough research in advance. They are after all extremely competent investors/ market participants
I suspect that impression is misleading. Most of the stuff in the media is rubbish, influenced by the pervasive anti-Glazer feeling evident on the Cafe. Almost all the articles are written by non-financial journalists.
This IPO is a good test of the United's real value, and future prospects. When people with financial expertise are investing their own money, prejudice is set aside, and a realistic assessment is made. The underwriters wouldn't have backed the issue without examining it thoroughly and being confident the Glazers would get their price for the shares.
That share price values the club at over £2B, despite claims on the Cafe and elsewhere, that the club was worth less than £1.5B. It's not at all likely that the IPO will fail. The Glazers and the underwriters will have done their homework.
Greed is good.
Quite simply institutions will hawk whatever instruments or products they have if it makes them money.
Institutional investors will buy because its not their money being risked.
Don't assume the market is efficient or logical.
Bullshit.
bullshit like Facebook burning its instiutional investors.
Buy side guys are not risking their own money.
There is moral hazard and the principal/ agent problem at work. Also there is beleif that these investment managers put short term goals ahead of long term aims as that's what their remuneration is based on.
http://blogs.law.harvard.edu/corpgo...rs-the-next-frontier-in-corporate-governance/
But they have a reputation at risk, which is critical to access such funds!
Will they run that risk without doing a thorough assessment of the shares potential in relation to their own risk- and investment profile?
If they were that prudent we wouldn't have as many holding onto worthless bonds and equities in the first place due to bad investments.
The reputational risk is overblown.
I share your view that money sometimes seems to be given priority over reputation. However, still based on an assessment of the possibilities and probabilities for money.
I think reputation / brand will be essential for the buyers of these shares!
I would like to have some for myself for the same reason.
and, the Glazers know that I and others will
I think reputation / brand will be essential for the buyers of these shares!
I would like to have some for myself for the same reason.
and, the Glazers know that I and others will
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