Manchester United as an investment?
2022.11.23 06:52
[ad_1]
Manchester United as an investment?
Budrigannews.com – United Manchester (NYSE:)confirmed yesterday that a procedure to “explore strategic alternatives for the club” has been authorized by its Board of Directors.
Along these lines, the Glazer family, which claims this noteworthy English club, affirmed weighty hypothesis that they are available to selling the club interestingly since becoming proprietors in 2005.
“The process is meant to help the club grow in the future, with the ultimate goal of putting the club in a position to take advantage of opportunities both on the field and in business.
“The Board will consider all strategic alternatives as part of this process, such as new investments in the club, sales, or other transactions involving the Company,” Manchester United stated in a statement.
The Raine Group, which handled Chelsea’s sale to a consortium led by American billionaire Todd Boehly earlier this year, was hired by the club as its sole financial advisor.
According to Jefferies analysts, Manchester United will easily attract buyers.”A truly unique asset with significant global reach (>1 billion fans/followers) and plays in the strongest realm within the current media landscape—live sports,” according to the analysts.
The analysts went on to say that “recent comp transactions (like Chelsea’s sale) have highlighted MANU’s valuation gap to peers,” which “we believe is partially reflective of a discount given significant insider ownership/limited float.”
Konik adds that Manchester United has a larger stadium, a wider global reach than Chelsea, and more revenue and EBITDA than Chelsea.Consequently, its fundamentals “justify a premium” to Chelsea, which was purchased for $3.1 billion and allocated $2.2 billion for stadium, team, and other investments.
After the club and international football star Cristiano Ronaldo reached an agreement to mutually terminate his contract, the news that Manchester United was up for sale emerged.In a recent unapproved interview, Ronaldo harshly criticized the club, its owner, and manager.By letting Ronaldo go about seven months before the end of his contract, it is estimated that MANU saved about $20 million per year in costs.
After closing nearly 15% higher yesterday, the stock of Manchester United is up about 10% in pre-market trading on Wednesday.
[ad_2]
