Man Utd to sell shares at $16 each in New York sale

Manchester United fans
Image caption Manchester United has a huge global fanbase

Manchester United has said it plans to raise as much as $330m (£210m) in a share listing in New York.

In documents filed with the Securities and Exchange Commission , the football club said it would sell 16.7 million shares at between $16 and $20 each.

But it also revealed that revenue had fallen in the last year as they were knocked out of the Champions League.

Manchester United was recently called the most valuable club in sport, worth $2.23bn, according to Forbes magazine.

The club has been controlled since 2005 by billionaire US sports investors the Glazer family, who also own the Tampa Bay Buccaneers American football team.

The Glazers' Class B shares will have 10 times the voting power of the Class A shares sold to the public.

United has said it plans to use the proceeds to repay debt.

The club currently has £437m of debt and £70m in cash.

Revenues down

In the regulatory filing, the club said its total revenue for the year to June was between £315m and £320m, down as much as 5% from last year.

That was mainly due to a 11-13% drop in broadcasting revenues - to £102m to £104m - after the team failed to make it past the group stages of Europe's premier club football competiton.

Man Utd said profit for the year from continuing operations will be as much as £23m, an increase of as much as 77% from the previous year due to tax credits.

The team spent a net £50m on players.

The company was incorporated in the Cayman Islands on 30 April.

On Monday, Manchester United also said it signed a new deal to have its shirts sponsored by US car brand Chevrolet.

Image caption Chevrolet will soon be the new shirt sponsor of Manchester United

The deal for an "undisclosed amount" is for seven years and begins from the 2014-2015 season , the club said.

Chevrolet, which is made by General Motors, takes over from current sponsor Aon.

The Glazers borrowed large sums of money to buy the club and the interest payments on this debt are onerous.

In 2010, the owners converted these loans into a bond in order to reduce the interest, but analysts say the share sale demonstrates how the club remains weighed down by its heavy debts, despite its huge global fan base and promotional and marketing efforts.

The Premier League giant, who came second last season and have won a record 19 titles, is listing on the New York Stock Exchange.

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