Shares in Manchester United PLC (NYSE:MANU) climbed in New York trading after the club confirmed the dismissal of manager Erik ten Hag.
The decision followed United’s 2-1 defeat by West Ham, leaving the team with just three wins in nine Premier League games and positioned 14th in the standings.
Former United striker Ruud van Nistelrooy will serve as interim manager, taking charge of the team’s Carabao Cup match against Leicester City at Old Trafford.
Club sources called the move a “difficult” choice, but acknowledged recent performances fell short of expectations, despite substantial investment in players and coaching staff upgrades.
“We are grateful to Erik for everything he has contributed,” the club said, referencing Ten Hag’s previous successes, including an FA Cup win.
With support from executives including CEO Omar Berrada, the decision reflects the club’s search for new momentum under Van Nistelrooy as a permanent successor is sought.
At 10.50 am New York time, the stock was up 1.2% at $16.15.
However, in the year to date, the stock has fallen 20% as the Red Devils trailed in eighth in the Premier League and missed out on lucrative Champions League qualification.
If it hadn't been for an against-the-odds FA Cup win over neighbours Manchester City, United wouldn't have made it to Europe.
Boss Jim Ratcliffe's Ineos bought a 27.7% stake in the club for $1.65 billion last December. The slide in its stock market value means the shareholding is worth just $748 million today.