David Moyes’ sacking saw the value of Manchester United increase by £100million - nearly double the asking price of transfer targets such as Toni Kroos and Luke Shaw.
Tuesday’s confirmation that the Scot had been axed resulted in a hike in the club’s share price on the New York Stock Exchange.
Having opened at 17.72 US dollars, United shares closed at 18.78 dollars – a reported rise in value of £100m.
The decision to axe Moyes and appoint a new manager appears to have won the confidence of investors - perhaps in the belief that the Nike deal will now be confirmed.
London-based financial analyst Andy Green, who writes a blog on football finance and advises the Manchester United Supporters' Trust, said: 'It's telling that there was a level of underperformance the owners could tolerate and a level they couldn't and it's interesting where that level was.
'You can have transition but decline is a different thing entirely and Nike would have not wanted to announce a huge new sponsorship deal while the situation - and the football - has been so dire.'
More than half of the United shares on the NYSE - though only 5.5% of the club - are owned by one American investment firm. It was revealed in March that Baron Capital had acquired 57% of the shares - a good investment strategy in the light of the recent surge in value.
United's debt was reported by the club in September as being £389.2million, costing £71million last year in debt servicing. According to Green, the £71million costs means that the total cost to United in interest, fees, bank charges and debt repayments since the Glazers' 2005 takeover of the club now stands at £680million.
No comments:
Post a Comment