business

How Cristiano Ronaldo sparked a rally at Manchester United (MANU) Stock


Source: shutterstock.com/amirraizat

Manchester United (NYSE:MANUAL) the stock jumped nearly 15% yesterday and is up another 10% this morning. A British professional football team, Manchester rallied after parting ways with their star player and began looking for ‘strategic alternatives’. Concretely, MANU seeks either to sell itself, or to obtain a significant investment from another entity, the British company Sky News declared. Manchester later confirmed the report.

The interview and the departure of the star

Cristiano Ronaldo has told Piers Morgan that Manchester United have made “no progress” in nine years. He added that he ‘does not respect’ club manager Erik ten Hag.

Ronaldo’s contract was due to expire in June, but Manchester United and the 37-year-old both decided to terminate the deal immediately. During his tenure with Manchester United, Ronaldo scored “145 goals in 346 appearances”, Manchester United reported.

Separately, Manchester’s board ‘authorized a thorough assessment of strategic alternatives,’ MANU executive co-chairmen Avram and Joel Glazer said in a statement yesterday. The company has indicated that it could sell itself completely, sell a partial stake or obtain investment from outside entities. Manchester United noted that they had hired Rothschild & Co.financial consulting firm, to support the search for strategic alternatives

Sky News previously reported on Tuesday that the club could be acquiredsell a “partial” stake in itself, or recruit a “strategic partner”.

Manchester United Background

According barrons, Manchester United is “the most successful club in the history of the English Premier League”. The US-based Glazer family has owned the team for approximately 17 years.

Fans are unhappy with the Glazers’ tenure, as the team hasn’t won a championship in five years and hasn’t been a league winner in nearly a decade. He currently sits fifth in his league.

However, Bloomberg estimates that MANU could be valued at around $6 billion in a deal. The market capitalization of MANU shares at yesterday’s close was $2.4 billion.

As of the date of publication, Larry Ramer did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Larry Ramer has researched and written about US stocks for 15 years. He was employed by The Fly and Israel’s largest business newspaper, Globes. Larry started writing columns for InvestorPlace in 2015. Some of his highly successful contrarian picks include PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.



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