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Manchester United Shares Drop To Three-year Low

Published

9 years ago

February 9, 2016

The club’s financial standing has been hit by a three-month long plummet which has seen the share price dip below its initial flotation level
Manchester United’s share price has fallen to its lowest value in over three years as a dramatic decline in the club’s Wall Street stock continues.
The club was floated on the New York Stock Exchange (NYSE) in August 2012 with shares offered at $14 each in a move which gave United an overall market value of over $2 billion.
But after peaking at $18.99 in November 2015, the share price has sunk to an unprecedented low, which has mirrored the club’s form on the field.
On Monday afternoon, the value of one United share dropped below the original flotation price for the first time since December 2012 when dipping to $13.86. At the close of trading on Monday, the price had recovered slightly to $14.10, but showed a 42 cent loss on the day.
The 27 per cent loss of value over the last three months comes as a big blow to shareholders, who on Thursday will be presented with the First Quarter 2016 Earnings report from the club.
In November, United announced a 39% year-on-year increase in revenues over the first quarter of the season. That followed financial boosts from the return to the Champions League, the new Adidas kit sponsorship deal and a number of other off-field ventures.
But the club’s form has since nosedived, with Louis van Gaal’s side being eliminated from the Champions League and recording only three league victories in 12 attempts on the way down to fifth spot in the Premier League.
Shareholders are set to question executive vice-chairman Ed Woodward in a conference call shortly after the report is submitted on Thursday.