Poor form cost Utd $1b last season

June 30, 2019

MANCHESTER UNITED lost $1billion over the past season as their poor form starts to have a major impact on the value of the club.

The controlling company which owns the club has seen 25 per cent of its worth disappear in the time it has taken for United to fall apart on the pitch.

 Manchester United have seen over $1billion wiped off the value of the club since last season began

Manchester United have seen over $1billion wiped off the value of the club since last season began 

Manchester United Plc was valued at an all-time high of $4.27billion (£3.31bn) at the end of August last year – but now it is trading a $3.17bn (£2.5bn).

And that could increase the pressure on the Glazer family as calls from fans for them to sell the club begin to ramp up.

There has been virtually no difference in the value of the pound against the dollar which could have impacted the share price, though a drop in the New York Stock Exchange market last Autumn hit the club hard.

But while the US market has grown steadily back to almost the same level as last August, United’s value has fallen away in the same way the team has plummeted on the pitch.

On August 31 last year, shares cost $26.20 but today they are trading at $18.08.

There was a brief period of improvement following the appointment of Ole Gunnar Solskjaer as manager with the side embarking on an eight-game winning run.

WRITE-DOWN

But after performances hit the buffers from February onwards, so the share price fell again.

Finishing sixth in the Premier League and failing to make the Champions League next season has seen the lack of optimism continue to be reflected in the markets.

Not only has that left the club facing a huge spending spree over the close season without any guarantees of it working, it has also led to fears that the below-par displays of some star players has led to a write-down in their transfer market value which would also damage the balance sheets.

Failure to qualify for the Champions League cost the club around £80m in UEFA payments, sponsorship deals and ticket sales.

The poor performances of the share price continued throughout June, to the extent the price fell to as little as $17.42 a share.

But there has been a rally over the past week, following the capture of Daniel James and then the signing of Aaron Wan-Bissaka from Crystal Palace.

Over the past six days, the share price has gone up by six per cent, with the market seemingly liking some of the moves United are making.

And there is also the potential of United bringing in close to £200m if they do decide to sell Paul Pogba this summer along with Romelu Lukaku, who is closing in on a move to Inter Milan.

Pogba is desperate to persuade the club to let him make a switchto Real Madrid or Juventus, although United would want close to £150m before they agreed to sell.

 Stats show Manchester United win more games and score more goals WITHOUT Marcus Rashford in the team

Stats show Manchester United win more games and score more goals WITHOUT Marcus Rashford in the team

 

SOURCE: thesun.co.uk


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