Manchester United’s valuation on the New York Stock Exchange plummeted by more than UK£500 million (US$627.7 million) in the wake of a report that the Glazer family has decided not to sell.
Nine months ago the owners announced a full sale was among the options being considered as part of a strategic review of the English soccer giants.
Sheikh Jassim and Sir Jim Ratcliffe made offers to buy the Premier League club, yet the interminable potential takeover process rumbles on as fans continue to protest against the Glazers.
Hopes of a full sale were seemingly dashed when the Mail on Sunday reported that the owners are taking the club off the market and will try to sell again in 2025.
That report led to more than UK£500 million (US$627.7 million) being knocked off United’s share price on Tuesday.
After the New York Stock Exchange reopened following the Labor Day holiday, the price plummeted from US$23.66 to US$19.35 by close.
United’s market capitalisation – the company’s worth on the stock market – was left at US$3.15 billion after the 18.22 per cent drop.
Earlier this year the Glazer family reportedly valued United at UK£6 billion (US$7.53 billion).
With no comment from the club or the Glazers in response to the recent report, it’s no wonder that shareholders reacted badly. The Glazers’ lack of communication, as well as speculation that they may not want to sell the club, has likely fuelled unease among investors, which has been amplified by the latest update.
A new report from the Mail has indicated that both Ratcliffe and Sheikh Jassim have not been informed the club’s sale was off, and that the process has not changed. Still, fans remain frustrated and the process’ slow nature suggests there is no rush to facilitate a deal in the foreseeable future.
The American family is thought to be hoping to extract between UK£7 billion (US$8.84 billion) and UK£10 billion (US$12.63 billion) for the team’s sale, with 2025 eyed as a more favourable year to make such a deal. Should the club’s valuation continue to fluctuate, it looks increasingly unlikely they extract a sale on those terms.