Manchester United’s poor first half of the season has seen a drop of €265m in the club’s valuation on the stock market in just one month.
The share price of the club dropped from €12.90 to €11.28 since December 6. That amounts to the value of the club dropping by 12pc. During that same period the S&P index, the market on which the club is listed, had a 2pc rise. The club’s total valuation was €2.11b one month ago and is today €1.85b.
The Daily Telegraph reports that the drop in the club’s stock price began in October and, despite resurgence in late November, the decline in valuation has coincided with the club’s poor form. Last weekend’s 2-1 home defeat, the fourth Premier League defeat of the season at Old Trafford, left the champions in seventh, 11 points off league leaders Arsenal and 5 points off the Champions League spots. Prior to that defeat United had won 6 consecutive games.
While United’s commercial revenues remain strong – although this could be hurt by a failure to qualify for next season’s Champions League - they have been hampered by annual interest repayments of €84.5m. The constant need to service these debts means they are unable to compete with the big spending clubs both domestically – in the form of Manchester City and Chelsea – and in Europe – where Real Madrid, Bayern Munich and PSG continue to spend handsomely to hoover up the best talent.
The Glazer family are reportedly committed to strengthening the squad this month, however, in a bid to back their manager, David Moyes.
United face Swansea in the FA Cup tomorrow at Old Trafford. Wayne Rooney, Robin Van Persie and Ashley Young will miss the game through injury.