New York float the answer to United's problems?

The debt ridden Glazer family are looking to float Manchester United on the New York Stock Exchange. Not only that, they intend to register Man Utd in the Cayman Isles. A sharp intake of breath for Manchester United fans. Whilst they maybe making reasonable turnover, their debt stands at £423 million. This is of course not to mention the half a billion pound in extra add ons and payments. 

It would come as no surprise to say the least if relying on Paul Scholes coming out of retirement had anything to do with it as a lack of real spending money. Whilst spending big on players doesn't guarantee your success, it is not unreasonable to think that the club will give you a relative transfer kitty. In fact Man Utd (as reported in the Guardian back in May 2012) have a net spend over the last 5 years of around £50 million. Far less than the big guns. For a team such as Man United, whilst it is good to nurture the youngsters, you are not going to be able to rely on that policy on its own unless you mix it with big name players.They may have signed Kagawa for £12 million but that is not a title winning signing it will need more than that.

Going back to the potential Man Utd floating on the NYSE, whilst it would raise $100 million or £64 million in our money it would be unlikely to be used on transfers for the new season either. Reducing the debt would no doubt take priority and the way the share release would work would give two sets of shares. One lot of shares that the Glazer family would get would see them maintain power, whilst the rest would see no power for the new investors. The idea of Man United being registered in the Cayman Isles, is not great. It was something that Hicks and Gillett did with the taking over of Liverpool FC.

Whilst going on the stock market could be greatly beneficial, if United take a downward spiral post Sir Alex, who is to say that shares and value may not decrease. It is interesting to note that Man Utd's debt increased by £26 million this year a sum that could be a possible transfer target. Should Man United continue to have trophy less seasons, this could also have a major impact on transfer funding and debt reduction.

One final thought, Facebook found trouble on the NYSE, who is to say that Man Utd may not find the same...