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Yes, General Motors really is giving $600 million to an English soccer club. Actually, as the team involved, Manchester United, is the most valuable team in sports, an investment in the club wouldn't be a bad idea, considering how everything else is going at General Motors. No, the $600 million GM is giving to Man United over the next 7 years is a sponsorship deal. In return, Man United will wear "Chevrolet" on their jerseys and GM will be able to call itself Man United's "global automobile partner." It will immediately have the edge with all those consumers who look to their favorite soccer club for car buying advice.
There is a very good reason government shouldn't bailout failing companies with buckets of taxpayer money. The money simply allows them to keep on making the disastrous decisions that got them to be a failing company in the first place. At least straight-up bankruptcy would have probably rooted out the kind of people who would think spending $60-70 million a year to have your logo on a soccer jersey was a swell idea.
There is a very good reason government shouldn't bailout failing companies with buckets of taxpayer money.
Billionaire investor George Soros is known for having broken the bank of England. Now, he’s betting on the UK’s largest soccer team, Manchester United, unveiling a big stake in the traditional football club after the bell on Monday.
Soros revealed a 7.85% stake in the football club, which translates to about 3.1 million class A ordinary shares, in an SEC filing. The billionaire investor bought the stocks through his investment firm, Soros Fund Management, and will hold them in the Quantum Fund.
Despite a history rich of success on the pitch, Manchester United has performed poorly as a stock since going public ten days ago. In a widely anticipated, and discussed, IPO, the mythical club sold 16.6 million Class A shares at $14 a piece, raising about $233 million before fees, as my colleague Chris Smith reported.
The investment is a surprising bet for a savvy market player like Soros. Shares in Manchester United pay no dividend and essentially carry no voting power.