BNR – Manchester United witnessed a dramatic plunge in its shares on Tuesday, marking the largest one-day fall in its history.
This drop came in response to reports indicating that the club’s American owners are contemplating taking it off the market.
In a turbulent day of trading in New York, Manchester United’s shares declined by more than 18%.
Indeed, the huge drop erased approximately $700 million from the club’s stock market valuation. As a result, the club is currently valued at around $3.2 billion.
A report published by the Mail on Sunday suggested that no potential buyers met the owners’ asking price, resulting in an abrupt decline in shares.
This report sent shockwaves through the market, leaving investors and fans in a state of uncertainty.
Ambitious Asking Price Deters Potential Buyers
The Glazer family, based in the US, announced their contemplation of selling the Premier League club while exploring “strategic alternatives.”
Their reported asking price stands at a huge £10 billion, which is an ambitious figure. Evidently, none of the prospective buyers, including Qatar’s Sheikh Jassim and British billionaire Sir Jim Ratcliffe, had matched it.
Currently, the Glazers have the option to reevaluate their stance or consider other alternatives. According to the Mail, the family may reconsider selling the club next year, hoping to get more potential buyers.
The Glazer family has owned Manchester United since 2005 when they acquired it for $790 million. However, their ownership has faced huge opposition from fans and club supporters.
Protests and Debt: Challenges of Manchester United
Critics accuse the Glazers of burdening the club with debt and insufficiently investing in its future.
Since taking control, Manchester United has spent over £1 billion on interest, loan payments, and share dividends. Furthermore, a significant portion of these expenditures benefited the Glazer family.
Also, the club has disbursed a substantial €1.36 billion with only Manchester City exceeding that figure during the same period.
The club’s ownership has sparked ongoing protests, with groups like the 1958 Group advocating for the Glazers to relinquish control.
Last month, Old Trafford played host to a protest by the group, underlining their continued opposition to the family’s ownership.
