U.S. investment firm increases stock in Manchester United, pours $150 million into club
While struggles on the pitch have hampered Manchester United’s season in 2013-14, off the pitch the English powerhouse seems to be going from strength to strength.
On Tuesday it was announced that American investment firm Baron Capital had purchased more stock in Manchester United and now owns a quarter of all the shares available in the club on the New York Stock Exchange.
Many people will hear this news and start thinking about a potential takeover bid from Baron, but the Glazer family had only released 10 percent of the club to the NYSE, while the other 90 percent is still in their hands. So, in essence, Baron only owns 2.5 percent of United with their $150 million stake.
Baron Capital’s investment ties in with recent trends around United’s financial success, as the club is widely expected to sign a new $1 billion deal with Nike and on Monday their share price has risen to its highest level since November at $15.84 per share.
Man United confirmed the shareholding in their investor relations website, where is states Baron Capital now owns 9,581,636 shares, which are worth $151m based on current share prices. While on Baron’s website, they had the following to say.
“Shares of Manchester United dropped ... due to a delay in the signing of a new global merchandise deal with Nike and the team’s poor performance on the field. The Nike deal is still expected to be signed, but has been pushed out from this fiscal year. We remain positive on the company’s prospects going forward.”
Good news for United all round, as the financial world realizes now is a good time to invest in the club as on-field problems have lowered share prices in recent months. With the club pushing forward with an aggressive pursuit of top talent, it seems as thought investors are gambling on the Red Devils returning to the top of the Premier League and challenging for European titles in the not so distant future.
As we know, soccer is not as cut and dry as that, but if the markets are anything to go by, good time are ahead for Manchester United.