Manchester United PLC (NYSE:MANU) shares have rocketed to an all-time high, despite the football giant’s struggles on the field so far this season.
On Monday New York, the stock closed up 2.4% at US$25.80.
On-pitch struggles
The rise coincided with a 3-0 thrashing at home by Tottenham Hotspur, a week after the Red Devils succumbed to Premier League minnows Brighton. It means the team has lost two games in August for the first time in 26 years.
It was a tricky summer for chief executive Ed Woodward, who landed only one of the club’s main targets during the transfer window, much to the annoyance of United’s manager, Jose Mourinho.
Despite Woodward’s profligacy in transfer negotiations, the former JP Morgan investment banker has proved himself to be more than capable of bringing new commercial partners on board.
READ: MUFC unveils commercial deal #54
United has most recently added toilet maker Kohler to its growing list of partners, which includes Chevrolet, Adidas and EA Sports.
The club also has a global lubricant partner and a global mattress and pillow partner. In fact, Woodward will seemingly strike a deal with almost any company that is willing to stump up the cash to associate itself with the Manchester United brand.
Revenues climbed 8% in their latest quarterly report up to £137.5mln, growth which helped the club hit the top of Deloitte’s richest football teams table for the second year in a row.
Bids for rivals
Also helping to drive the share price is likely to be speculation surrounding two of United’s main rivals: Chelsea and Liverpool.
Chelsea owner Roman Abramovich is reportedly looking to sell the club for £2.5bn having been refused a new visa to enter the UK earlier this year.
If the Russian businessman gets what he wants, it will be the highest price ever paid for a football club.
On the other hand, Liverpool’s owners, Fenway Sports Group, are not looking to sell and recently rebuffed a £2bn offer from Sheik Khaled Bin Zayed Al Nehayan, a member of the Abu Dhabi ruling family.
The price tags for two clubs which have fallen some way short of United in the boardroom and on the pitch over the past 15 years means the Red Devils could likely command a sum in the region of its current market value, which now stands at US$4bn (£3.1bn).
Of course, that is only if the club's owners, the Glazer family, have any interest in selling their golden goose.