American firm Baron Capital buys Manchester United shares at NYSE

American investment firm purchases stake in Manchester United shares

An American investment firm Baron Capital has bought 24% of all the Manchester United shares available at the New York Stock Exchange.

The firm had been buying up stocks which were up for sale by the Glazer family in 2012. At present, Baron Capital is the owner of 24% of the stock, though it represents just 2.5% of Manchester United.

According to analysts, the firm considered United to be a very good long term investment.

The Glazer family who owns United, had put up only 10 per cent of the club on to the stock market. They still own 90 per cent.

Baron Capital’s shareholding of Manchester United was confirmed in a securities and exchange commission filing on the Manchester United investor relations website. It says Baron Capital now owns 9,581,636 shares, which were worth 151million US dollars (£90million) at the close of the market on Monday.

The Independent quoted Baron Capital’s website: “Shares of Manchester United dropped. Due to a delay in the signing of a new global merchandise deal with Nike and the team’s poor performance on the field. The Nike deal is still expected to be signed, but has been pushed out from this fiscal year. We remain positive on the company’s prospects going forward.”

Andy Green a London-based financial analyst who writes a blog on football finance and advises the Manchester United Supporters’ Trust, suggested that the move by Baron Capital appeared to be purely an investment strategy and was not the start of any takeover bid.

Green was quoted: “I am sure they are looking at the investment opportunities and rumours of the new Nike deal. They have a reputation as a long-term investment company.”

United’s share price closed at $15.84 on Monday – the highest level it has reached since November last year.