Manchester United Shares Acquired By American Investment Firm
With a reported new Nike kit deal worth €700 million seen as a major attraction, nearly a quarter of Manchester United’s shares listed on the NYSE have been secured by investment firm Baron Capital this week.
Manchester United owners, the Glazer family, listed the club on the New York Stock Exchange in 2012 but have retained a 90 percent holding in the company. This season, despite all the problems on the pitch, the share prices of Manchester United has been slowly increasing in recent weeks and Baron Capital’s movement in the market could go some way to explain that increase.
In a securities and exchange commission filling on the United investor relations website, 9,581,636 shares were confirmed to be owned by Baron Capital, worth a reported £90.9 million ($151 million).
A €700 million kit deal with Nike has reportedly been sealed providing a further boost to the English club’s stock rates, as revealed by Baron. On the investment firm’s website, the information was provided on the portfolio that includes the shares of Manchester United, and confidence was expressed in their future prospects.
Their commentary read:
“Shares of Manchester United dropped in Q4 (fourth quarter of 2013) 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 the fiscal year. We remain positive on the company’s prospects going forward.”
This certainly justifies the strength and belief in the club, how it is able to make huge amount of profits while displaying poor play on the field. It further even clears the doubts on how the club is managing to afford the weekly wages of Wayne Rooney (£300,000) and Robin van Persie (£250,000). Or further how the club is able to spend £37.1 million on making Juan Mata wear the red jersey and the rumors surrounding the Glazers gifting a £180 million transfer kitty to David Moyes to rebuild the squad this summer.