How much can the value of the world’s most popular club depend on a single man? Evidently, quite a lot.
When the legendary Sir Alex Ferguson stepped down as Man United manager last May, MANU stock nosedived from a share price of $18.44 to $15.16 in only a month! Under the disastrous reign of David Moyes, the stock continued to plummet, reaching a 52-week low of $14.26 in February.
But since March, MANU stock gradually rose once again. Coincidentally, this was around the same time rumors of Moyes’ possible firing first surfaced. Hmmm! And once Moyes did finally get the ax early Tuesday morning, United’s stock suddenly became a hotter commodity than rare Pokemon trading cards in a late 1990s middle school cafeteria.
Tuesday evening, MANU stock closed at $18.78/share after opening at $17.90. A week ago, the stock closed at $16.26; that’s over $2.50/share less. We are no financial experts here, but we do know that’s a big difference. In fact, the value of the club was at over $3 billion by market close Tuesday, an increase of $100 million since Monday, the last day Moyes was still in charge.
From The Associated Press:
Since 2012, when 10 percent of United was floated by the Glazers, the rise and fall of the club’s shares have been as keenly watched as the team’s results. Wall Street investors initially welcomed the dismissal of Moyes, with shares soaring by seven percent at one point after Tuesday’s announcement - reaching their highest level since Ferguson’s retirement.
”Following on as the successor to Sir Alex Ferguson was always going to prove a Herculean task … with arguably deeper disappointment at stake should the trophy cabinet remain bare for a second season,” said Andrew Wilkinson, chief market analyst at Connecticut-based Interactive Brokers.
As hip-hop artist Nelly might say, “Hey, must be the Moyesie!”
Illustration provided by FOXSports.com / Eddie Hon