5 August 2014- The Glazers are to sell 5 per cent of their holding in Manchester United which should raise them $150m. A road show to sell the Class A shares will start next week.  

They sold a tranche of 10 per cent in 2012.

They are cashing in on rising confidence in the club following the appointment of Louis van Gaal.  He enjoyed a successful World Cup with Holland, but the Premier League is a different kind of challenge and he has been appropriately cautious in his statements and in relation to new player purchases.

The new kit deal with Adidas has also given a boost to confidence, although it has been revealed that the amount involved would be cut by 30 per cent to £52.5m if the club failed to qualify for the Champions League for two consecutive seasons.

The club is now forecasting year end revenues of £429-£434m.   £188m-£190m of this would come from commercial revenues, emphasising the key contribution they make to club finances.  Broadcast revenues would contribute £134m-£136m.{jcomments on}

The Glazer family is selling about 5 per cent of its holding in Manchester United, taking advantage of the club’s rising share price on the back of its £750m kit supply deal with Adidas.

United will begin a roadshow next week offering 8m Class A shares, which at Wednesday’s closing share price of $19.31 would yield the family $154.5m (£91.4m).

The 8m share sale will leave the Glazer family with about 83 per cent of the club in its hands. It will also create more liquidity in the market, which could benefit the share price depending on the club’s progress on and off the pitch.

Despite United’s miserable 2013-14 season, which saw the club slip to a lowly seventh place in the Premier League and thereby fail to qualify for the Champions League, shares have enjoyed a steady rise in recent months.

The club replaced manager David Moyes with the experienced and highly regarded Louis van Gaal.

But the most significant event since the end of the season was its announcement that it was replacing Nike as kit supplier with Adidas, which is paying £75m a year for 10 years.

Revenue forecasts for the fiscal year to June 30 have been revised upwards. Total revenues are now expected to come in at £429m to £434m, although the forecast for adjusted earnings before interest, tax, depreciation and amortisation has narrowed to £128m to £130m.

The club said it expected operating costs for the year to rise up to about 20 per cent to between £369m and £373m.

Net finance costs will be up to £28.5m, and net player capital expenditure will be roughly £79m.

“We expect that trend to continue, as competition for talented players may force clubs to spend increasing amounts on player registration fees,” United said.

“As we remain committed to attracting and retaining the highest quality players, increases in player capital expenditure will likely result in increases in expenditures for player wages.”

Ed Woodward, executive vice-chairman, has in recent weeks made clear that the club intends to be active in the summer transfer window. The club has spent about £60m so far in the close season.

The Adidas deal was worth a “minimum” £75m a year, United said. It can go up by £4m a year depending on results, although it could also fall by 30 per cent if the club fails to qualify for the Champions League for two consecutive seasons from 2015-16.

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