Features
Man U Shares Fall
The impact of Sir Alex Ferguson’s resignation as manager of Manchester United was felt on Wall Street, where the soccer club’s valuation dropped by nearly $150 million at one point.
The share price tumbled almost 6 percent from $18.77 to $17.73, losing about $146 million of United’s near $2 billion market cap, although the stock later recovered to $18.50.
The U.S.-based Glazer family, which has owned the Premiership-winning club since 2005, floated it on Wall Street at the beginning of the current soccer season.
Possibly wary of a Wall Street drip, the club was slow to confirm the Daily Telegraph and other papers’ stories about Ferguson’s intended departure.
The club has, however, been very quick to install Everton manager David Moyes as his successor.
“Markets dislike uncertainty and dislike change, so you would expect the market would be a little nervous about Ferguson going,” said Deloitte analyst Dan Jones.
Jones didn’t think the departure of 71-year-old Ferguson, who has led United to win 38 trophies including 13 Premier League titles, will have any lasting effect on United’s worth.
“People will recognize this is fundamentally an extremely strong business that has got a lot of long-term deals tied down,” he said.