Manchester United IPO

Posted by Kris | Sunday, August 21, 2011 | | 0 comments »

Can you see me in the Singapore Exchange or NOT!?
Hell Ya!!!
Who wants to buy a piece of Wayne Rooney!? His performance now is subject to the whims of shareholder if the news about Manchester United applying IPO at Singapore Exchange comes true. Wonder why they don't plan to Bursa since it is just across the causeway. 

I wonder if the stock will shoot up every-time Manchester United scores a goal, win a match or lift a trophy. That would be a stock buyers dream. We don't care whether or not they can bring in enough revenue, etc. 

Nevertheless, from a investment & business prospective buying a share of football club is the lousier investment ever. I repeat EVER!!

Owning a football club particularly from the English Premier League is like a whim or a trophy collection to show to other people that you have reach billionaire status or you become "someone" in this world. Or at least you think you are. (as evident by one of our famous local entrepreneur, whom company is actually in huge debts and high leverage & also owns a motor racing team). 

These ventures aka football clubs & motor racing team don't really make money due to their extravagant spending. (Players are overplayed and have tons of attitude problems. At least some of them) .A few years later, the team ownership will easily change hand to someone richer after the former owners gets poorer and decides to throw in the tower.

Football matches are fun to watch but it is a money sinkhole.

Manchester United Ltd. may start gauging investor demand next month for a $1 billion initial public offering in Singapore, three people with knowledge of the matter said.
The soccer club will hold a presentation for the deal to analysts next week, according to the people, who declined to be identified because the process is private. It hired JPMorgan Chase & Co. (JPM) andMorgan Stanley (MS) as so-called bookrunners for the IPO together with Credit Suisse Group AG (CSGN), the people said.