Soccer club Manchester United has made a disappointing debut on the New York Stock Exchange, even after opening at a discounted price, with enthusiasm for the celebrated team overshadowed by its debt load and financial track record.
Many had expected that fans of most famous soccer club in the world would snap up shares, leading to a pop in early trading, but that didn't materialise.
Some analysts had warned that the initial public offering was overvalued, particularly since the club is debt ridden and the family that owns them, the Glazers, retained almost total voting control over the team.
"There was a lot of wing flapping, but not much flying today," said John Fitzgibbon, the founder of IPOScoop.com on Friday.
"It's reflective of the overall IPO market; they may hit a couple of road bumps, but the deals are getting done."
Manchester United shares were flat at $US14 in midday trading on the New York Stock Exchange, the level they were priced at by the underwriters late on Thursday.
The stock, traded under the MANU ticker symbol, had been expected to be sold for between $US16 and $US20 per share.
The $US14 per share price still valued the club at $US2.3 billion ($A2.18 billion), slightly higher than the record $US2 billion paid for the Los Angeles Dodgers baseball team earlier this year.
The 134-year-old soccer club expects to make $US110.3 million from its offering of 8.3 million shares. It will use $US101.7 million to pay down senior notes.
The Glazer family, which owns the team, is selling another 8.3 million shares separately.
The family's 2005 leveraged takeover was valued at $US1.47 billion, much of it borrowed. United carried STG416.7 million ($A620 million) in debt as of March 31. It had no debt when it was bought by the Glazer family in 2005.
The Glazers are the American family that owns the Tampa Bay Buccaneers. Malcolm Glazer is CEO of First Allied Corporation, a holding company with numerous business interests. His two sons, Avram and Joel, are co-chairmen of Manchester United.
After the stock offering, the Glazers will keep control of the team through Class B shares that have 10 times the voting power of the stock sold to the public.
Manchester United is one of the most renowned sports teams in the world. It claims 659 million followers and 26.9 million Facebook fans. Half of its fans are in Asia, where its games are televised and its replica shirts and other products are huge sellers. But analysts are more skeptical of the team, known as The Red Devils, as a financial commodity. It is not a high-growth company like a tech startup, but like some tech startups, it is heavily in debt.
Manchester United is hoping to expand its lucrative sponsorships and licensing deals. Earlier this month it announced a $US559 million, seven-year shirt sponsorship agreement with Chevrolet. But financial performance has been choppy. The team expects to report a loss for the year ended June 30, excluding a tax credit, with revenue down 3 per cent to 5 per cent.
And broadcasting and ticket revenue is largely dependent on how far the team goes in English and European cup competitions.