The instability of the New York stock market in 2012 has caused the issuance of stocks, the solution that MU used to write off debts, must be temporarily shelved.
According to The Guardian, Man Utd decided to postpone the issuance of shares on the New York Stock Exchange, because of concerns that the unrest in Wall Street could lead to unpredictable consequences.
Before coming to New York, Man Utd had looked at the Far East stock market, from Hong Kong to Singapore, but all have to ignore because of the instability in these markets.
The New York market was chosen in the hope that the stock would help the club get the financial resources to cover the £ 423 million debt. However, the erratic rise and fall of the S&P, Nasdaq and Dow indices on Wall Street caused anxiety for the management of Man Utd that year. Therefore, they decided to postpone the release.
According to the original plan, M.U will list shares on the New York Stock Exchange from the beginning of August 2012 but now this plan is temporarily postponed. M.U’s financial advisers are reconsidering a plan to issue shares after the Euro zone experienced another week of crisis, causing the stock market to fall.
The Glazer father and son bought M.U for £ 790 million in 2005. The transfer was strongly opposed by M.U fans. They use the banners in order to protest the arrival of Glazer. The reason MU fans are against the Glazer family is to own their team because the American businessman is in debt that his plan to issue shares of MU on the NYSE is to deal with bank debt.
This action has caused Man Utd fans to immediately react in a negative direction. The stock market is arguably the best solution the club has to write off debt, something the team has suffered since the Glazer family took over Old Trafford in 2005.