Manchester United stock falls on reports of the Glazer family retaining ownership
The Yahoo Finance Live team discusses a decline in stock price for Manchester United amid the latest news of the team's ownership plans.
Video Transcript
- My play is Manchester United, a 2-0 winner on the pitch Sunday, but big loser, as you can see, on the market today. Shares down more than 11%. News reports suggest the Glazer family is scrapping a plan to sell the team. Will instead secure a major outside investment that would allow them to maintain ownership and according to ESPN, quote, "double the value of the club over the next 10 years." Double it.
Sky News reporting over the weekend that the Carlyle Group is in talks with Man U over a major investment. Other groups linked to potential investments in recent months include Elliott Management, Ares Management, and 6th Street Partners. So time will tell on all those. Now, while the Glazer family envisioned a bidding war emerging that topped well over $7 billion, that never really materialized based in part on doubt that they'd actually give up ownership, which is what we're seeing.
A Qatari bid did emerge, as well as UK's richest man Sir Jim Ratcliffe, said to be somewhere north of five. The Glazer family paid around one billion for the club. That is currently has a market cap north of $3 billion. This has been the story to watch in the, UK arguably the premier soccer club on the planet in terms of the branding and franchise. No, not the best on the pitch. But it's been in a lot of intrigue. And I don't know which of you is a bigger-- I know you're a little bigger soccer fan. How you see this playing out?
- Yeah. Look, I mean, they wanted at least $6 billion. The reports are at least $6 or north of that. And they are not getting it. And so perhaps they're going this route. I mean, what's been interesting is this whole kind of bidding process and what's transpired throughout this whole bidding process. To double it, I mean, that's--
- That's a heck of a plan by the Glazer family, isn't it, Allie?
- Yeah. And a full buyout of the club, that would mean a big payday for all those shareholders as well as those controlling owners, which is why we did see shares spike last year on rumors the family was willing to sell the whole kit and caboodle. Not so much anymore, which is why the shares are a bit depressed today. But I was talking to you earlier about "Ted Lasso." I know we're fans. I know we're not the biggest fans of this season. But maybe they could incorporate this into a storyline.
- That would be good. AFC Richmond has let me down on and off the pitch this season. It's been a disappointing one as far as I'm concerned.
- It's been a disappointing one.
