The Glazer family revealing its willingness to sell Manchester United ( MANU ) propelled the club’s stock to its best week ever—a 70% share price rally that added more than $1.5 billion to its market cap in just six trading days. The gains easily made MANU the best-performing sports stock of November, pulling the JohnWallStreet Sports Stock Index to an overall gain of 4.6% for the month, its second consecutive month higher .
Red Devils shares rose from $13.03 on November 21 to $22.14 on Wednesday following an announcement that the Glazers, who control 96% of the voting power of the business, were open to strategic alternatives for the club , including sales. The rise in price is easily the best run for Manchester United stock in its 10-year history as a public company. The next best period was a rally of 51% over three months late in 2012, the late year family patriarch Malcolm Glazer took the club public on the New York Stock Exchange.
The recent rally increased the club’s market capitalization from $2.16 billion to $3.7 billion, beating the $3.16 billion price placed on Premier League rival Chelsea in its earlier sale. this year.
“We continue to believe MANU’s fundamentals warrant a premium to the clubs sold earlier this year,” Jefferies equity analyst Randal Konik wrote in a research note from the brokerage last week. that passed. “Old Trafford is a much bigger stadium [compared to Chelsea], MANU has a global reach over Chelsea, MANU has over 1B followers and Chelsea only has a fraction of that, and finally MANU generates more revenue.”
Konik added that Manchester United’s value is enhanced by “playing in the strongest realm within the current media landscape—live sports.” In an earlier note, Konik called Manchester United the best brand in the world’s most popular sport. According to Sportico’s Premier League valuations in 2021, Man United was worth $4.65 billion, and Chelsea was valued at $3.35 billion.
Manchester United is one of 40 publicly traded businesses that make up the JohnWallStreet Sports Stock Index, which closed the month at 1,130, the highest mark since mid-September. However, the 4.6% increase for the Sportico index fell behind the wider market; the S&P 500 gained 5.4% in November, benefiting from investors favoring old-line stocks in the materials and industrials sectors. The sports stock index is strong in growth stocks, such as sports betting and sports technology, as well as broadcasters and the handful of publicly traded sports teams. United States.
Overall, 29 out of 40 companies in the sports index rose on the month, with apparel maker Under Armor ( UAA ) the second best performer, gaining 36%. UAA ended the month at $9.97 a share, six weeks removed from closing at $6.62, its lowest price ever. November’s rise belies skepticism on Wall Street that Under Armor can return to the growth it once enjoyed, with Morgan Stanley bearishly noting earlier in the month that the company has a higher cost of capital and a “hardened operating model.” Sportradar (SRAD, up 20%), Nike (NKE, up 17%), and Caesars Entertainment (CZR, up 15%) rounded out the top five performers.
The declining issues in November show that even sports-related stocks cannot escape the influence of Taylor Swift. Poor ticket sales for the pop star’s 2023 tour, with Ticketmaster’s failure to restrict pre-sales to specified fans and market partner customers, meant millions of buyers were all competing for tickets at once, resulting in a price hike that left fans paying thousands of dollars. for the seats coming out of the nose. That sparked equity market fears of government action on ticket brokers and ticket pricing, sending Ticketmaster parent Live Nation ( LYV ) down 9% on the month and Vivid Seats (SEAT), the other ticket reseller in the JohnWallStreet index, fell 10%.
The worst-performing stock in the month was esports group FaZe Holdings (FAZE), which lost 41% to close November at $2.04 a share, just four months after going public with a merger SPAC at $10. FaZe’s chief strategy officer, Kai Henry, resigned from the company during the month, and the business announced its intention to cut costs as it reported a third-quarter loss of $131 million on sales of $14 million. About $116 million of the loss was an accounting charge on the exchange of corporate debt for equity as part of the public issue. Betway parent Super Group (SGHC, down 22%) and FuboTV (FUBO, down 23%) were other big losers.
A second consecutive month of gains for the sports stock index did little to offset a bearish 2022 for stocks. The JohnWallStreet index is down 27% for the year, compared to a 14% retreat for the S&P 500. The benchmark sports index was set at 1,000 to begin August 2020 and reached the -peak of 1,763 in November 2021. The sports index is rebalanced every three months. and equal weighted, meaning each stock starts quarterly as 2.5% of the index.
What is Man Utd biggest win ever?
The biggest victory in the history of the Premier League of Manchester United is 9-0, which they achieved twice, with the first one coming against Ipswich in 1995 under the leadership of Alex Ferguson. They equaled that record 26 years later when they put nine past Southampton in January 2021, this time with Ole Gunnar Solskjaer as manager.
.
Did Man U buy any player?
To the dismay of the fans, Man Utd did not sign a single player during the January transfer window. This may interest you : 2022 FIFA World Cup in Qatar: 100 things to know with 100 days to go; news, notes, facts for each group. Follow the latest Cristiano Ronaldo transfer news right here!
Who is Man U’s latest signing in 2022? ‘He doesn’t get enough credit’: Pundit raves about underrated part of Manchester United’s star game after World Cup win. Lisandro Martinez signed from Ajax for an initial £46 million. The agreement was confirmed on July 17. An agreement has now been confirmed for Casemiro to be signed from Real Madrid, on August 18.
Who have Man Utd signed 2022 2023?
The Dutchman recruited six new players during the summer, with Martin Dubravka, Tyrell Malacia, Lisandro Martinez, Casemiro, Christian Eriksen and Antony all named in his list for the 2022/23 season. To see also : Fans enjoy the first official sports betting weekend.
Has Manchester United bought any player?
Man Utd confirm £86m deal for Antony Manchester United have completed the signing of Brazilian winger Antony from Ajax for a fee of £86m on Deadline Day. The 22-year-old has signed a long-term contract at Old Trafford, and is in line to make his home debut against Arsenal on Super Sunday – live on Sky Sports Premier League.
Has Man U bought any player 2022?
The 2022 summer transfer window has now closed and it has proved to be a busy period for the Manchester United men’s team with five new players signed on a permanent basis and a sixth recruit joining on loan, while that there were also many departures and temporary exits.
Did Man U buy any player?
Man Utd confirm £86m deal for Antony Manchester United have completed the signing of Brazilian winger Antony from Ajax for a fee of £86m on Deadline Day.
Did Man U buy any players in 2022? The 2022 summer transfer window has now closed and it has proved to be a busy period for the Manchester United men’s team with five new players signed on a permanent basis and a sixth recruit joining on loan, while that there were also many departures and temporary exits.
Who have Man Utd signed 2022 2023?
The Dutchman recruited six new players during the summer, with Martin Dubravka, Tyrell Malacia, Lisandro Martinez, Casemiro, Christian Eriksen and Antony all named in his list for the 2022/23 season.
Has Manchester United bought any player?
Man Utd confirm £86m deal for Antony Manchester United have completed the signing of Brazilian winger Antony from Ajax for a fee of £86m on Deadline Day. The 22-year-old has signed a long-term contract at Old Trafford, and is in line to make his home debut against Arsenal on Super Sunday – live on Sky Sports Premier League.
