Manchester United's share price took a significant hit on Tuesday, raising concerns among investors about the club's anticipated sale.
The shares were valued at $23.66 on the New York Stock Exchange before the Labor Day weekend, marking the end of the American summer. However, when trading resumed on Tuesday, the price plummeted by more than $5, hitting a low of $18.83 before recovering slightly to close at $19.35.
This represents an 18.2% drop, the largest decline in share price since the club went public in 2012. The immediate trigger for this decline is likely a report in The Mail on Sunday suggesting that the club's owners, the Glazer family, are considering taking United off the market.
Last November, the Glazers announced a review of "strategic alternatives" for the club, which initially boosted the share price. However, bidders, including Sheikh Jassim Bin Hamid Al Thani and Sir Jim Ratcliffe, have offered valuations below the Glazers' asking price of $8 billion (£6.4 billion).
The share price has been influenced by the perceived likelihood of one of these bidders winning the contest. When Sheikh Jassim appeared favored, the price rose, but when Ratcliffe gained momentum, it fell.
The uncertainty surrounding Ratcliffe's bid, potential litigation, and the protracted process have contributed to this recent decline. While both bidders still express interest in acquiring the club, the direction of the sale process remains uncertain.
The club's global fanbase and commercial appeal, along with the prospect of Champions League revenues and an expanded Club World Cup, suggest reasons for the Glazers to hold on longer.
