Manchester United is Now Valued at $3 Billion

Manchester United has now become the first team in sporting history to be valued at $3 Billion.

The shares of the English Club that were offered to the public on 14th August, at $14, did poorly at first but then later improved. The stocks, that closed at $17, outperformed the S&P 500 since its Initial Public Offering, which made the Glazer family and George Soros, who had bought a big stake in the club, wealthier.

Manchester United’s enterprise value rose to $3.3 Billion after the recent increase in stock price, making it the highest valued club in the world. Second on the list is the NFL‘s Dallas Cowboys, who are worth $2.1 Billion.

Although there was a drop in the first quarterly earnings due to reduction in television revenue, shares of the 19-time Champions are still being bought owing to better earnings due to new sponsorship deals with the Japanese paint manufacturer Kansai and China Construction Bank and a potential for much more from the English Premier League and Champions League payouts this year.

Sports teams that are publicly traded are commonly bad investments. But contrary to this, the Red Devils have a bucking history.

Source- Forbes