David Gill: 'Manchester United flotation is a potential'

Gill: 'United flotation is a potential'
© PA Photos
Manchester United chief executive David Gill says that there is "potential" in the club's flotation of shares on the Singapore Stock Market.

Manchester United chief executive David Gill has said that there is potential in the club floating shares on the Singapore Stock Market.

Having recently received bids which fell below their valuation from China and Qatar, the Glazer family, who own the club, are expected to put 25% of shares up for sale for $1bn (£643m), which would value the club at £2.57bn.

The flotation would also help United to reduce the annual debt which is a result of the Glazer's taking out a loan to buy the club in 2005.

"It's a potential," Gill told the Sunday Telegraph. "I think the finances of the club are in robust health in terms of the bond interest against the EBITDA [earnings before interest, taxes, depreciation, and amortization] that we do have, so in that respect I am not concerned.

"But it was an opportunity, and is a potential opportunity, to strengthen them even further. If the proceeds were by and large used to pay down the bond debt then that would take some of the interest costs out."

Despite talk of the flotation, Gill emphasised that it would not happen until the club had received legal advice.

"It is not officially on hold but the owners will be taking appropriate advice from the advisors and determining what the markets are telling us," Gill added. "But I don't think it's the level of the market - it is the sheer volatility. That's the challenge."

United continue their Premier League campaign on Saturday away at Liverpool.

Man Utd
Read Next:
Man United write to tragic hockey team
You May Like
Recomended from Sports Mole

1Manchester CityMan City87102942522
2Manchester UnitedMan Utd86202121920
3Tottenham HotspurSpurs85211551017
9Newcastle UnitedNewcastle832398111
10West Bromwich AlbionWest Brom824279-210
12Huddersfield TownHuddersfield823359-49
13Swansea CitySwansea822458-38
14Brighton & Hove AlbionBrighton8224610-48
15West Ham UnitedWest Ham8224814-68
17Stoke CityStoke8224918-98
18Leicester CityLeicester81341013-36
20Crystal Palace8107218-163