Crisis-hit Man Utd have €1.5 BILLION wiped off their value
Karan Tejwani
- 14 Jun 2022 04:40 CDT
- 3 min read
Manchester United have shown some signs of encouragement in this summer so far after a disappointing season, where they finished sixth in the Premier League and trophyless overall.
The club announced the arrival of new manager Erik ten Hag and have been linked to players from across Europe as they look to rejuvenate their squad ahead of the new season.
However, they’ve been dealt with a big blow as the club’s overall value dropped by over £1.3 billion after shares fell to a low on Monday evening.
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Manchester United's share prices drop drastically
By the end of Monday, 13 June, shares in Manchester United plc were valued at just $11.07, a huge drop since last summer when they peaked at $20.74 at one point following a successful start to the season.
It’s believed that this drop in share prices has come as a result of the club’s extensive spending plans for the summer and foreseeable future as they look to rebuild Manchester United.
The spending will come within the playing squad, where United are expected to sign several players this summer, and also on off-pitch matters such as improving Old Trafford in the coming years.
The drop also means that there has been an overall drop of 21% in share prices since the Glazer family took over Manchester United in 2005.
This is worrying after it was revealed last month that the club’s net debt now stands at £495.7million, a rise of almost 12 percent from this time last year.
Despite the rise in debt, the club’s owners – the Glazer family – will still get a part of their dividends, which are paid out twice a year in January and June.
Manchester United shares fall to record low as New York takes another tumble. Price now down 47% since last October as market spooked by general economic fears & cost of restoring squad & Old Trafford, wiping £1,319,000,000 off the club value #Glazernomics #MUFC pic.twitter.com/ipkb2EchhA
— Kieran Maguire (@KieranMaguire) June 13, 2022
The Glazer family’s six members who own shares in the Red Devils will all get their shares of dividends, which is sure to raise controversy and anger amongst the club’s supporters once again.
Ever since the family’s takeover of the club in 2005, fans have protested against their arrival through banners, walkouts and events outside Old Trafford, but the family have still retained their control over the club.
A breakaway club – FC United of Manchester – was even founded soon after the takeover was complete to retain elements of the original Manchester United.
While there are some encouraging signs from Manchester United, the club’s ownership is still concerning and there will always be a level of disdain towards them.
Read more about: Premier League, Man Utd
