Manchester United suffer disappointing stock exchange debut – as share prices slashed night before launch
Manchester United were listed on the New York stock exchange today – but saw share launch prices slashed and little price movement on the first day of trading.
The club’s bankers had been hoping to sell shares as high as $20, yet ended up cutting the launch price late last night to $14.
Around 16.6million shares were floated, which equates to about 10% of the club.
Despite the disappointing start, chief executive David Gill remains hopeful for the club’s prospects – citing the recent sponsorship deal with Chevrolet as proof of their potential.
Speaking to Sky News, Gill said: “The level of debt that we've had at the club since they've taken over hasn't impacted what we've done as a team.”
He added: "We've won four Premier Leagues, we've been to the Champions League final three times, we've had ongoing success on the pitch.”
Despite the drop in launch price, some sources are claiming today’s floatation saw the Glazers pocket £75million.
And the launch price still makes the club officially the world’s most valuable sports club – valuing it at around $2.3billion.
Shavaz Dhalla, financial trader at Spreadex, said: "After opening positively, possibly caused by smaller retail investors looking to pick up a token share, the club's share price slowly began to retrace and drop early gains.
"Clearly, investors who are actually looking for a return as well as a shareholder voting right are steering clear."
Some fan groups won’t be disappointed at the news, in particular Manchester United Supporters Trust, who called for a worldwide boycott on the club’s sponsors last week.
A statement on their website read: “The boycott strategy is intended to send a loud and clear message to the Glazer family and club sponsors that without the support and purchasing power of the fans - the global strength of the Manchester United brand doesn’t actually exist.
“It is hoped sponsors will put pressure on the Glazer family to reconsider their plans.”
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A MUST spokesman said: “Essentially the IPO is bad for investors, the club and the fans.”
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