|[Published: Friday September 18 2015]
LONDON, 18 Sept. - (ANA) - The six children of Malcolm Glazer who owns the Englishfootball club of Manchester United will be paid more than £15 million ($23 million) every year from the club after it was announced that there will be a dividend to shareholders.
The five sons and one daughter of the late Malcolm Glazer – Avram, Joel, Kevin, Bryan and Edward Glazer, and their sister, Darcie Glazer Kassewitz – will be paid $3.9 million (£2.5m) each annually as the majority shareholders of Manchester United plc, the United holding company registered in the Cayman Islands and floated on the New York stock exchange.
In the 2014-15 accounts of Manchester United plc, whose financial highlights were disclosed on Thursday, the company announced it will pay a dividend of $0.045 (£0.03) every quarter, for each share owned by a shareholder.
The Glazer siblings together own approximately 131 million shares, 80% of the total issued, according to a spokesman for the club. That means every three months, they will be paid $5.9 million (£3.8m) in total. Annually, the payment of that dividend four times, each quarter, adds up to $23.6m (£15.2m) altogether to be paid to the Glazer siblings – $3.9m (£2.5m) each.
The decision to pay the dividend, the first since the Glazer family floated the club on the New York stock exchange in 2012, was, the company said, made by the board, on which all six of the Glazer siblings sit.
In a conference call with investors, United’s finance director, Hemen Tseayo, said the decision to pay a dividend was because of the club’s strong financial and commercial performance in 2014-15, and predictions of record income and underlying profits in 2016.
The regular £15m the Glazers are set to make from United every year follows a series of occasions on which they have made money since floating the club, which they bought in 2005 using debt that the club itself has been made to repay. The family made £75m selling a portion of their shares when they floated the club in 2012, then last summer sold a further 12 million shares for $17 each – making another $200 million (£129m). In December, one of the Glazer brothers, Edward, announced the sale of 3 million of his shares, for a price that was expected to fetch him $45 million (£29m).
The figures showed United’s income fell by £38m in 2014-15 because of the team’s failure to qualify for the Champions League in the previous turbulent season under David Moyes after Sir Alex Ferguson retired. Despite that drop, United’s total income of £395 million is a Premier League record by far, although other clubs have yet to report their 2014-15 figures. - (ANA)
AB/ANA/ 18 September 2015 - - -