Manchester United’s share price rose dramatically after David Moyes’
sacking as investors rushed to buy stocks in the 2013 Premier League
champions.
Wall Street reacted to news of Moyes’ departure on Tuesday morning as
the United share price went up by more than $1, and by over 7 percent,
in the space of three hours.
It took United’s share price, which was $17.72 before trading opened,
to $19.00 by 17.55 BST (12.55 ET) in a sign that there is greater
financial confidence in the club’s future without manager Moyes.
The
United share price reached its highest level since the announcement of
Sir Alex Ferguson’s retirement last May and had not been at $19 for 11
months.
The highest price shares have reached in the last year was $19.18 last
May, after United had won the 2013
Premier League title and while
Ferguson was still in charge.
The Glazers, the club's American owners, likely would have been
concerned that next season's exile from Europe's top club competition
may have dragged on for years at a time when player costs are high and
interest payments on the club's debts are a real burden. Big United
sponsors, such as Nike, may have become restless, according to The
Associated Press.
"Clearly Nike and other sponsors are paying for one of the best and
most recognized football brands in the world -- not one that cannot even
make the Champions League," said Louise Cooper, an independent
financial analyst in London. "The financials ensured that Moyes was not
given the time to perform."
Ten percent of United’s shares were floated on the New York Stock
Exchange in August 2012 in a partial Initial Public Offering (IPO).
The other 90 percent of the shares remain owned by the Glazer family, who bought the club in 2005.
At a share price of $19.00, United are valued at around $3.3 billion.
United’s share price was at its lowest level in Moyes’ nine-month reign in February, when it bottomed out at $14.26.
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