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Slump in United's value

Manchester United's value has slumped by more than £260m in the decade since the Glazer family sold 10 per cent of their shares on the New York Stock Exchange.  It is exactly ten years since the club was listed in New York and the Glazers have taken more than £100m in dividends since then.

The share price on Tuesday evening was 19 per cent lower than when it was launched.  On the basis of the value of the shares, United's overall value had dropped from £2.2 billion in 2012 to about $1.88 billion.  (This does not take account of inflation at an average of 1.7 per cent a year in the UK).  In the same period the share price of Juventus has doubled.

Football finance guru Kieran Maguire reckons that the low price reflects investors having a negative view about the management of the club from the owners downwards.  'If you are that far below your launch price a decade later then that must be a reflection on how the market perceives the quality of management', he told The Times.

Maguire notes: 'If you had invested £1,000 in Manchester United shares that day on 10th anniversary they're worth £814. Same amount invested in Juventus is worth £2,000, F1 £2,564, Atlanta Braves £1,585.'

Until the pandemic United delivered profits almost every year, as well as setting the bar in terms of commercial growth.  The failures on the pitch have not been down to a lack of investment in players.  In terms of net expenditure, United have spent £1 billion since 2013, only just short of Manchester City and more than Chelsea's £735m.

However, income from player sales has been well below their rivals - £400m at United, £500m at City and £735m at Chelsea.

Maguire believes that the Glazers may have banked on a Super League or something like Project Big Picture to fund investment at Old Trafford.

As it is, the club will have to take on more debt to fund the expansion of the stadium to 90,000 seats.  this will mean taking on more debt, but Maguire points out that Tottenham have shown the value of taking on debt to improve a stadium.

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