Man Utd co-chairman Avram Glazer puts £70m worth of shares up for sale

Ed Woodward Avram Glazer Manchester United
Getty Images
He could be in for a huge windfall after announcing he is selling 5,000,000 Class A shares but it will not impact the ownership of the club

Manchester United co-chairman Avram Glazer has put five million of his shares, with a value of around £70 million ($97m), up for sale.

United announced Glazer's decision on Thursday night, with the offering expected to run until Tuesday. With the current New York Stock Exchange valuation of $20.13 each per share it would mean he is in line to rake in $101m (£72m).

The sale, should it happen, would see the Glazers' ownership of the club drop from 78 per cent to 74.9% and it is understood the family has no plans to relinquish its ownership fully.

What has been said?

The statement release on Thursday night confirmed the club would not receive any money from the sale: "Manchester United plc ["Manchester United"] today announced the offering of 5,000,000 of its Class A Ordinary Shares by the Avram Glazer Irrevocable Exempt Trust [the "Selling Shareholder"].

"Manchester United will not receive any proceeds from the sale of any Class A Ordinary Shares by the Selling Shareholder. The offering is expected to close on March 16, 2021."

What does this mean?

Class A shares, which these are, have a tenth of the voting rights of Class B shares and the Glazer family owns the majority of Manchester United.

It is understood the family has no plans to relinquish its control. If the sale goes through, Avram Glazer’s personal stake in the club would reduce down to 10.2% while the family as a whole would own just under 75%.

Article continues below

How does this affect United?

In short it doesn’t really affect them at all. The Glazer family still has the vast majority of shares and there is no suggestion that it has any plans to sell them on any time soon.

In terms of the club’s finances, United announced last week in their latest set of financial results that they had seen their net debt grow to £455.5m ($633m), an increase of £64.2m ($89m) compared to last year's results. While the principal debt remains the same, it is understood that the increase in the net debt has been primarily down to the lack of revenue due to the coronavirus pandemic.

Further reading

Close