Football

Manchester United See Company Value Decrease By A Quarter Of A Billion Pounds

Manchester United See Company Value Decrease By A Quarter Of A Billion Pounds

Poor form doesn’t only extend to Manchester United on the pitch after it was revealed that the value of the Old Trafford club has dropped by £250million in the last month.

The recent defeats of Davie Moyes’ United side have had a direct effect on the New Year Stock Exchange with the current price at $15.16 per share at the close of trading last night.

How will the Glazer family feel about that?

According to James Igoe, a Private Client Director at XCap, who spoke to the Manchester Evening News, the club face an uphill task.

He said: “The club peaked in May when they won the league and was worth $3.1bn, the most the club has ever been valued at.

“Now though, it is worth $2.5bn, down 12 per cent in the last four weeks and 20 per cent on May last year.

“I have always been quite negative on the prospects for the club floating. Because they are going to have to have as much success in the next four to five years as they had in the past, say, ten years.

“I can’t see how they are going to extrapolate that sort of growth. United have driven a lot of growth in China and the Far East and had a lot of success. I think the fan base is running the risk of being diluted by Liverpool and Manchester City.”

“At the moment it has become more difficult to have that faith in the share price when you are buying into the company.

“For a long time Tesco was an extremely successful stock and they were able to exhibit that because all the share price did was go up. But then that came to an end.

“And last Christmas Tesco came out with a profit warning  which had never done before.”

He added: “If United are in threat of not getting into the Champions League that will cause serious problems. Often big advertisers who come on board will have pre-conditions and will only sign up if they are going to get into the Champions League.”

Source: M.E.N

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