Shares of Manchester United (NYSE:MANU) fell in today’s trading session. This can be attributed to reports indicating that the Glazier family, which has a controlling stake in the club, may not actually be willing to give up their entire ownership.
The Glazers are looking for a valuation of £5 billion should they choose to fully offload their shares. However, the bank that’s managing the sale for the Glazers believes the club may actually be worth more – somewhere around £6 billion to £8 billion. Interested parties include buyers from Saudi Arabia, Qatar, and Jim Ratcliffe, who is the richest man in Britain.
When it comes to investing in professional sports teams, it appears that status (for large investors) or passion may be the driving force of motivation. Indeed, a look at the long-term performance of MANU stock shows very little reward for its stakeholders. It was only after reports suggesting the Glazer family would sell the club entirely that shares reversed their downward trend.
