Millwall is a football club that has been publicly owned for over 20 years but John Berylson, an American businessmen, has just announced that he will be making it private. Since 2007 when he made his first investment in the club, Berylson has slowly been taking control of the club and has been involved in a great many restructurings of the finances of the club.
The delisting will leave the club in near total control by the chairman and when it was announced that the club would be going private shares fell nearly 40%. Only five years ago most of the club was owned by fans and small shareholders, but now the vast majority of it is owned by Mr Berylson and other directors of the club. This meant it was very easy for them to decide to make the club a private entity.
Once the club has been taken private it is expected that the board will vote to redevelop the grounds and stadium where the club play. It is expected that this investment will ultimately bring a good return to any shareholders who are left. Despite its recent promotion to the championship, Millwall continue to make a loss and the club has only survived thanks to loans from Mr Berylson. These loans were later traded for equity in the club.
The reason for the delisting has been given by the club as a cost saving exercise. Its shares are traded relatively infrequently and the club estimates that it is having to pay £100,000 a year to be a public company. A third party body will be set up to help those with a small interest in the club sell their shares.