Sunderland plans pounds 12m flotation

Sunderland AFC yesterday became the latest football club to shoot for glory in the City as well as on the pitch when it announced plans to seek a stock market listing later this year. The float will raise pounds 10m-pounds 12m of new funds and value the club at pounds 40m-pounds 45m.

The funds will be used to repay loans of pounds 6m taken out to build Sunderland's new pounds 15m, 41,600-capacity stadium being built on the outskirts of the City. More funds will be made available to manager Peter Reid to buy players and secure the team's position in the Premiership. Sunderland currently lie fifth from bottom.

Bob Murray, chairman and the co-founder of the Spring Ram kitchens and bathrooms business, said a flotation was the way forward. "We feel it is right for our business. Sky has changed everything and with the possibility of pay per view, the opportunities could be even greater."

Peter Reid will be one of beneficiaries of the flotation. It emerged last week that he had paid pounds 300,000 for a significant stake in the club. After the float Mr Reid's 5 per cent stake will be worth pounds 2m-pounds 2.5m.

The shares are expected to start trading next month.

Tottenham AGM, page 26