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What future for Manchester United?

The Glazer family have had at last had success in American football with the Tampa Bay Buccaneers winning the Super Bowl trophy.

But what about Manchester United?   They continue to invest as well as take dividends.  There has been €200m of expenditure on players in the last two years, but is this because the Glazers intend to build the club up and then sell it at a profit?   It's one way of making money out of a football club.

The sports franchise business is becoming more competitive, not least in the Premier League.  Media rights are key, but the market for them has become more complicated.  The pandemic is also affecting sponsorship income, an area in which United is conspicuously successful.

Manchester United stock fell as low as $12.06 in March last year when the Premier League was suspended because of the pandemic.  This was below the $14 of its initial price offering in 2012.   They are now back at $16.33, although in real terms some allowance should be made for the eroding effects of inflation.  Even so, the company is worth $2.6bn.

UK fund manager Lindsell Train is one of the two biggest shareholders apart from the Glazers.  Their strategy is to invest in a limited number of quality companies.  [The writer holds funds with them].

They think that United will benefit as Amazon and other digital streaming companies spend more on sports content.  For me, the question is whether they will spend top dollar compared with sports broadcasters who are likely to reduce their offers.

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