Manchester United IPO: Possible Move to US Stock Market Would Help Reach Goals

After considering several Asian stock markets for an initial public offering of stock, Manchester United has turned its focus to the United States, according to the New York Times.

The Red Devils have been hoping to raise $1 billion through the offering, but the report states that became less likely due to problems in both the Hong Kong and Singapore markets.

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The combined dollar value of new listings in the United States has risen 2.6 percent, to $29 billion, so far this year, mostly supported by Facebook’s $16 billion I.P.O., according to the data provider Dealogic. The value of initial offerings in Hong Kong and Singapore, however, has fallen more than 90 percent over the same period.

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Manchester United is owned by the Glazer family—most notably Malcolm Glazer. Another reason for the potential move of the IPO would be his ability to maintain control of the team after the sale, which would probably only be possible in the U.S., based on the Times report.

So it appears the United States market is United's best chance of having things work out the way ownership wants them to. The team's debt has been a big story ever since the Glazers took control of the team back in 2005.

The other thing to consider would be the United States as an emerging soccer country. It's still no where near the level of popularity the game has in Europe, but American fans have started to embrace the game more as the national team started having more success.

That could make the United States stock market even more attractive if the United owners decide to offer an IPO. No decision has been finalized and there's no timetable for one, according to the report, as the team continues to weigh its options.

All things considered, it's no surprise the owners have shifted their attention to the United States. It provides the most versatility as Manchester United looks to trim its debt without undergoing any significant changes.