On Tuesday, Manchester United’s share price plummeted, wiping off a stunning $690 million from the club’s valuation.
United‘s stock price cratered overnight after rumors surfaced over the weekend that the club’s Glazer family owners were planning to remove the team from a possible sale. The club’s asking price was reportedly too high for any possible buyer, and the Daily Mail stated as much.
As a result, United’s stock price settled at $23.64 on Friday. Despite the approaches from Qatar’s Sheikh Jassim bin Hamad Al Thani and INEOS’s chairman, Sir Jim Ratcliffe, the market continues to assume a sale will occur in the near future.
Manchester United currently valued at $3.2bn
Shares of the Red Devils may be found on the New York Stock Exchange. The U.S. stock exchanges were also closed on Monday for Labor Day.
However, by the time Tuesday trading opened, United shares dropped to $20.88. They saw a short upswing that brought them to $21.44 during early trade before settling at $19.33, a decrease of about 20% from their opening price.
The drop in share price on Tuesday reduced the team’s market value by almost $700 million. This club is currently worth roughly $3.2 billion. The Glazers spent $790 million for the club in 2005.
Glazers holding out for $12.5 billion in sale of United
The Glazer family said in November that they were looking at “strategic alternatives,” including perhaps selling the Premier League team. Brothers Joel and Avram Glazer, co-chairmen of the Red Devils, reportedly want a bid of $12.5 billion.
Some supporters have been vocal in their disapproval. They claim the Glazers have loaded the club with debt and aren’t spending nearly enough on the team. The 1958 Group is a group of supporters who want the Glazers to sell the club. The group mounted a demonstration outside Old Trafford last month to show their continuous disapproval of the family’s management.
PHOTO: IMAGO & PA Images
