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Manchester United: George Soros invests in football club | Manchester United: George Soros invests in football club |
(about 1 hour later) | |
The billionaire investor George Soros has bought a stake in Manchester United football club, a US regulatory filing showed. | The billionaire investor George Soros has bought a stake in Manchester United football club, a US regulatory filing showed. |
Mr Soros' investment fund bought about 3.1 million Class A shares in the club, according to the Securities and Exchange Commission. | Mr Soros' investment fund bought about 3.1 million Class A shares in the club, according to the Securities and Exchange Commission. |
Class A shares carry less voting power than Class B shares. | |
His shares equate to a 1.9% stake in the entire club, worth about $40.7m (£25.8m) at Monday's closing price. | |
Manchester United floated on the US stock market earlier this month, valuing the club at more than $2.3bn (£1.46bn), making it one of the biggest sports clubs in the world. | |
But since its 10 August listing, its share price has fallen 6.7%. | |
Manchester United has been controlled since 2005 by the Glazer family, the billionaire US sports investors who also own the Tampa Bay Buccaneers American football franchise. | Manchester United has been controlled since 2005 by the Glazer family, the billionaire US sports investors who also own the Tampa Bay Buccaneers American football franchise. |
About half of the $233m that the club raised from its flotation will go to paying off the club's debts, with the rest going to the Glazers. | About half of the $233m that the club raised from its flotation will go to paying off the club's debts, with the rest going to the Glazers. |
Manchester United's shares on Monday closed down 2.7% at $13.06, after hitting a fresh low of $12.91 earlier in the day. | Manchester United's shares on Monday closed down 2.7% at $13.06, after hitting a fresh low of $12.91 earlier in the day. |
Football investment | |
The 82-year-old investor, who oversees $25bn in assets through his Soros Fund Management LLC, has in the past eyed other football clubs as lucrative investments. | |
He considered a takeover of Italian club AS Roma in 2008 but decided against it due to the club's debt problems. | |
Mr Soros was likely attracted to Manchester United because of the team's profitable media rights deals. | |
"This could be a play by Soros on the strength of Manchester United's brand and the English Premier League's growing media rights," said Philip Hall, a partner at Inner Circle Sports, an investment bank focused on the sports industry. | |
"The domestic rights are set to increase 70% for the 2013-2014 season and the international media rights, set to be announced in late October or early November, are also expected to come in at a very robust uplift," he added. |