Manchester United Plc (NYSE:MANU) saw over $750 million wiped off its stock market valuation as its New York-listed shares lost as much as 19.5% following reports over the weekend claiming the club was no longer for sale.
The football club’s New York shares, which represent the club's minority and subordinate equity, have begun pre-market trading after America's Labor Day holiday weekend.
It comes after the price was previously traded up speculatively, as traders sought to make-a-buck in anticipation of a premium-priced takeover which now appears increasingly unlikely.
United’s majority owners, the Florida-based Glazer family, launched a process nearly a year ago which explored strategic options to fund the club including a partial or full sale of the company.
The protracted process reportedly ended with two serious interested parties lodging bids for the club – one being Sheikh Jassim, a Qatar banker with connections to the state’s royal family and the other Sir Jim Ratcliffe’s INEOS.
Sheikh Jassim sought to buy 100% of the club, including the New York-listed shares, whilst the INEOS offer was for a controlling portion of the Glazers' majority stake. Albeit precise details remained scarce as all parties were subject to confidentiality.
Nonetheless, a report in the Mail on Sunday citing "a source with long-standing close ties to the American family" and including notable details, claimed the Glazers intend to shutter the sales process and shelve their divestment plans potentially until 2025, when a US-hosted World Cup and upcoming new TV rights auctions are expected to boost interest among hypothetical potential buyers.
The report came ahead of the international football break, providing an extended period without a home game for United (which have been focal points for angry fan protests against Glazer ownership) and was ahead of the Labor Day public holiday in America, meaning investors had another 24 hours before the market could react.
And react they did, as soon as trading began …
Today, in early deals Manchester United shares were last trading 18.5% lower, losing $4.39 per share to trade at $19.25.