Abstract
In 2012 Manchester United (MANU), small in size though world famous, successfully managed to do IPO at New York Stock Exchange (NYSE). Behind the scene, for the past decade US suffered from the declining activities in the economy, notably the huge decline in the number of IPO as well as that of private establishments launched,which is caluculated equivalent to the loss of 2 million employment in terms of 2007. The number was quite intolerable for the government. Thus US government has decided to reopen the domestic capital market for the Emerging Growth Companies by Jobs Act, literally, to stimulate private sector establishments and create jobs in the States. MANU took the opportunities of refinancing their debt in their LBO. For the investment bankers it used to be beyond their imaginations to launch equity offerings for the English professional football clubs at NYSE, because the issuers' profitability as well as their stability in the management was historically questionable. On top of that multi-class equity structure matters to this equity offering. This IPO as well as the successive equity finance is not a simple on for a mere professional football club, but the very symbol of the US government competing against their rival countries globally for global money and issuers to activate their domestic markets, in IPO, private sector establishments and most importantly, employment, in the end.. Investors decide, but this issuance structure might be harmful in the capital market in view of corporate governance.
