Manchester United in Focus as David Beckham Supports Sale
Manchester United Sale Talk
The British football team has been under the control of the Glazer family since 2005, who turned it into a publicly traded company on the New York Stock Exchange in 2012. However, their era has been controversial, with constant calls for a sale by fans.
The prolific CEO of Tesla Motors Inc, Mr Elon Muck managed to attach himself into that story as well back in 2022, as the Twitter acquisition saga was raging. He had tweeted "Also, I'm buying Manchester United ur welcome" [1], but quickly clarified that this was just part "a long-running joke" and he was not actually bun any sports teams. [2]
Although just a joke, Mr Musk's tweet underscored the seemingly endless talk of the club's sale prospects. Not long after that, in November of last year, the Glazer family formally announced it was exploring "strategic alternatives" that included a sale of the club. [3]
There seem to be two main contenders at this point in time. A Qatari consortium and British billionaire Jim Ratcliffe, who according to a Bloomberg report is the frontrunner after a revised bid [4]. The situation appears to be rather vague though and it is still unclear if any deal would lead to a new majority owner.
Beckham Favors Ownership Change
Speaking on CNBC on Thursday, English former footballer David Beckham supported a change in ownership. He said "it's the right time for somebody else to take over" and "take it back where it should be", noting that the club has "no stability" at the moment. [5]
Although currently co-owner and President of Inter Miami, where he turned heads with the signing of Argentinian superstar Lionel Messi, Mr Beckham's opinion will likely carry some weight with the Red Devils' fan base.
He is a team legend, since he played for the club for more than 10 years, including the blockbuster 1998-99 season, when it won the treble. It dominated that year's Premier League and FA Cup domestically, as well as the top European competition, emerging victorious from a nail-biting Champions League final against Bayern Munich.
Club Value
Manchester United (MANU.us) is one of the most recognizable and valuable clubs in the world. It was second in the Forbes 2023 ranking, with current value of $6 billion, behind Spain's Real Madrid [6]. As of Thursday's close, it had a market cap of around $3.22 billion on the NYSE.
The company generated revenues of £481.1 million (more than 585 mln USD) for the nine months ended 31 March, up 3.5% y/y. The biggest contributor was commercial sales, which includes sponsorships and merchandise. The club raised its outlook for the full fiscal 2023, to a record £630-640 million. Its operating loss narrowed substantially to £10.9 million, from nearly £27 million a year ago. [7]
On-Field Performance
The Red Devils are one the most successful teams of English football, but their on-filed performance has been lackluster during recent years. Not only the team hasn't won the Premier League in a decade, it has seen its same-city rival growing to dominate the domestic competition. Manchester City has won seven championships since 2012.
Manchester United is off to a poor start this season, with just four victories and equal losses in the Premier League. Things are not any better in the UEFA Champions League, as it has lost the first two matches and ranks last in the Group A of the European competition.
Manchester United Stock
MANU.us had soared last November after opening the door to an ownership change, registering its best monthly performance since it went public in August 2012 and a profitable 2022. It also surged in June as sale news intensified, but then declined into negative territory for the year. It has been volatile since Thursday, as investors digest David Beckham's remarks and the latest news around a potential sale.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 13 Oct 2023 https://twitter.com/elonmusk/status/1559691922725281800 | |
| Retrieved 13 Oct 2023 https://twitter.com/elonmusk/status/1559760618537848832 | |
| Retrieved 13 Oct 2023 https://www.businesswire.com/news/home/20221122005840/en/ | |
| Retrieved 13 Oct 2023 https://www.bloomberg.com/news/articles/2023-10-12/jim-ratcliffe-said-to-lead-race-to-invest-in-manchester-united | |
| Retrieved 13 Oct 2023 https://www.youtube.com/watch | |
| Retrieved 13 Oct 2023 https://www.forbes.com/lists/soccer-valuations/ | |
| Retrieved 11 May 2024 https://ir.manutd.com/~/media/Files/M/Manutd-IR/press-release/mar-2023-mu-plc-earnings-release-v1.pdf |
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