Iran's 2 Main Football Clubs to Float Controlling Stakes

Iran Privatization Organization has released new information about the block sale of controlling shares in Tehran's two main football clubs, Esteghlal and Persepolis. 
According to a press release from the IPO, 51% shares of the two clubs will be offered in the bourse. Per the plan, Persepolis shares will be offered on February 28 while Iran Fara Bourse will set the date for selling Esteghlal shares.
Esteghlal's 51% block will be offered at the base price of 21.37 trillion rials ($52.12m) and Persepolis 21.94 trillion rials ($51.9m).  Buyers should pay 20% in cash and the rest in six annual installments after one year grace period. The IPO has invited potential buyers to start negotiations before the offer opens. 
According to IPO, the two cubs are not allowed to have the same owner and owners of other soccer clubs are also barred from buying shares of the two major clubs. 
Buyers will be required to reduce the each club's debts by 33% within a year of operation or face fines. 
The IPO will secure the right to revoke the deals if each of the two club fails to rank among the top four clubs in two successive seasons. Potential buyers are also required to announce plans for increasing the clubs’ income.
Block sale of shares in Iran has been tried and tested several times in the past but failed to achieve the desired results simply because under the dire economic conditions buyers are unable or unwilling to put up millions of dollars in such business.
Block trade typically involves large numbers of equities or bonds at an arranged price between two parties.
This is sometimes done outside the open market to lessen any negative impact on the security’s price. Given the size of block trade, individual investors are rarely involved.
The government after months of delay once offered stakes in the two top clubs in March. However, their ticker symbols were not allowed to be publicly traded. Failing to meet transparency requirements and market fluctuations were said to be the main reasons behind delays in opening the ticker symbols. 
Esteghlal reportedly sold 1,236,099,656 shares to 286,000 buyers while Persepolis sold 1,034,840,567 shares to 320,000 people.
Both clubs reportedly sold 10% of their stakes in the subscription phase and investors could buy a maximum of 3 million rials shares. 
Esteghlal’s stake comprised 1.23 billion shares each priced at 2,910 rials. Persepolis offered 1.034 billion shares each worth 3,387 rials. 
The subscription generated 3.6 trillion rials ($8.7 million) for Esteghlal and 3.5 trillion rials for Persepolis and the money was used to boost the capital of the two clubs via share premium. 
Share premium is the difference in price between the par value, or face value of shares, and the total price a company receives for recently-issued shares.  Share premium is the additional paid-in capital in excess of par value that an investor pays.
Esteghlal (the Blues) had a private owner before the 1979 Islamic Revolution, but was later put under the control of the then Physical Education Organization (now Sports Ministry). Persepolis (the Reds) had a similar fate.
More than a decade ago, when the Asian Football Confederation insisted on privatization of professional football clubs, state-owned clubs were no more accepted as AFC members and timelines were set for the transfer of proprietorship.
Following the AFC ruling, several scenarios were considered for the two clubs, including selling shares in auctions. All past measures to privatize Esteghlal and Persepolis flopped and the baton has been passed on from one administration to the next.
The two clubs were banned from the AFC Champions League last year for failing to meet the requirements for obtaining the entry license to the games.