Manchester United (NYSE:MANU) shares advanced by around 2% in early deals after the English football club announced in-demand goalkeeper and star player David de Gea had signed a four year contract extension.
The deal, which is reportedly worth £200,000 (about US$308,000) a week, indicates De Gea will return to on field duties soon - after the want-away the Spanish international was dropped from the squad whilst his future at the club was uncertain.
As such strengthens the team’s chances of sporting success.
But, the deal also has financial significance as it strengthens United’s hand in any future transfer negotiations should the goalkeeper again seek a move back to Spain.
United had appeared to have ceded to pressure from the player and Real Madrid.
A £29mln transfer had been agreed but the deal collapsed amid missed deadlines, seemingly due to computer problems.
Without today’s contract extension De Gea would have been able to leave Manchester United on a free transfer at the end of the current season when his existing deal expired. The new arrangement locks in asset value for the Manchester club.
Manchester United’s New York Stock Exchange listed shares traded up to US$17.95 shortly after trading began on Wall Street. At that price the sport and media business which is majority owned by Florida’s Glazer family is valued at around US$3bn.
The football club is due to release its fourth quarter and 2015 full year financial results next Thursday.