‘Worst day in 11 years’: Glazers suffer huge financial losses after latest Manchester United takeover reports

Manchester United has experienced a staggering one-day decline in its share price, sending shockwaves through the financial world. On Friday, September 1st, each share was valued at $23.70 (£18.86), but by the close of trading on Tuesday, September 5th, it had plummeted to $19.35 (£15.41). This dramatic drop is a severe setback for the Glazer family, who had been exploring the possibility of selling the club earlier this year.

The Glazers’ decision to reconsider their ownership has triggered a devastating reaction in the market, with Manchester United’s value on the New York Stock Exchange plummeting by a substantial 18.22%. The Glazer family currently controls 69% of the Premier League club and had been engaged in discussions to divest their stake during the summer.

However, recent reports suggest that they intend to withdraw their share of the club from the market until 2025. Allegedly, they anticipate fetching a staggering £7 billion to £10 billion in a future sale. Nevertheless, this unexpected turn of events has eroded investor confidence, leading to a mass exodus of stockholders and a sharp decline in the stock’s value.

Prominent journalist Ben Jacobs described this market reaction as “the worst day in 11 years” since Manchester United became a publicly listed company. In just 24 hours, more than £550 million of the club’s market value was wiped away.

The Glazers’ ownership of Manchester United has been a contentious issue since they acquired a majority stake in the club back in June 2005. The acquisition was largely funded through borrowing secured against the club’s assets. To this day, the debt incurred from this purchase stands at £500 million, and servicing it has cost the Red Devils over £1 billion, despite the owners continuing to receive dividends from the club.

In November 2022, the Glazers initiated the process of selling the club, with banks overseeing the sale. Earlier this year, Qatari Sheikh Jassim and Sir Jim Ratcliffe, the founder of INEOS Chemical Group, submitted bids to acquire the club. Although the exact bid amounts were not disclosed publicly, it is known that these bids offered a premium compared to the stock’s previous higher price. However, they reportedly fell short of the Glazers’ set price of £6 billion.

The future of the Glazers at Manchester United remains uncertain, and it remains to be seen if they will respond to this latest market reaction. Despite the recent decline, the club’s stock price is still significantly higher than the average of $13 (£10.35) before the club was officially put up for sale in November 2022. Nevertheless, the market is clearly reflecting the uncertainty surrounding the club and the reports of its potential removal from the market.