Yahoo Finance Live turns to shares of Manchester United as the valuation of the British soccer comes into question amid the potential sale by its owners.
Video Transcript
JOSH SCHAFER: Well, Jared, if we're having a donut, we're having a coffee, we might as well watch some soccer, right? Let's take a look--
JARED BLIKRE: Nice.
JOSH SCHAFER: --at some MANU shares. They're in the red today as a report from the Financial Times indicates the team might not be worth the $6 to $7 billion price tag some have reported the Glazer family is seeking. The Financial Times points to recent data from Deloitte tracking revenues across professional soccer.
The key data point you can see here on your screen is that while Manchester United long had been a revenue leader, its advertising revenue in the last five years is now below the average of the other top six clubs. You can see MANU spiking there in 2015, now coming back down. Basically, what you're looking at is Manchester United was one sort of in a league of its own, in some ways, in European soccer. And European soccer has grown a lot over the last couple of years. And so have some of the other top clubs. So it's not like--
JARED BLIKRE: Well, the other Manchester.
JOSH SCHAFER: Right, exactly. The other Manchester City has grown a lot. And so you don't necessarily just pay for the MANU brand maybe as much as we initially thought.
JARED BLIKRE: Yep, makes sense to me. I was just looking at a longer term chart-- this goes back 10 years for Manchester United on the YFi Interactive. Huge, huge spike you were talking about there. This almost looks like a biotech stock with those binary options of whether or not it's going to clear the FDA. But is this going to clear the bidding, I guess, the bidding process? I think--
JOSH SCHAFER: Right. It's driven shares a ton over the last couple months.
JARED BLIKRE: So not-- I guess not surprising to see the chart behave like that.
