Manchester United (NYSE:MANU) followers have had plenty to sing about in recent times, turning that support into buying shares in the soccer club would have been an even better play.
Plenty of questions were raised about Manu’s move to the stock market last year, but had you invested at the time, you would have made a tidy profit.
In the space of just over 13 months, the shares have risen 25% on Wall Street to $17.47 a pop – for less than twice that amount, you could watch Wayne Rooney and his teammates play live at Old Trafford.
Driving the share price rise is the club’s ability to hold on to top players, such as Rooney who was hotly-tipped for a move away from the club this summer, as well as impressive growth numbers.
The club’s fourth quarter financial figures revealed record revenues of £363mln for last year, with a net profit of £146mln.
Sponsorship deals helped lift commercial revenues by 30%. US car giant Chevrolet is set to become the club’s shirt sponsor next year, replacing Aon.
Commercial revenues will now account for 42% of the club’s total income, with the rest raked in from TV rights and ticket sales.
Alongside the results were plans to sell another $400mln of shares to the public, having raised $110mln in last year’s IPO.
New York-based stockbroker Jefferies is urging its clients to buy the shares, pointing out that there is still “compelling growth” to be won by the club.
“We remain encouraged by momentum in the high margin commercial business and consistency in the match day and broadcasting segments but are walking down our projections to more appropriately reflect the current outlook,” it said.