Manchester United as a Publicly-traded Company

Spread the love
  • Contents
  • Who owns Manchester United?
  • Manchester United’s Board Of Directors
  • Manchester United’s Business Model
  • Manchester United’s Stock Price
  • Manchester United’s Stock symbol
  • How to invest in Manchester United’s Stock
  • How much did Manchester United lose during COVID-19?
  • Manchester United Players
  • Manchester United’s ticket sales
  • How to get Match tickets for Manchester United home matches
  • Manchester United’s match ticket prices

Manchester United is one of the most historic and most followed football clubs across the world. The club which was founded as Newton Heath LYR Football Club in 1878 and changed its name to Manchester United in 1902 has been one of the most successful football clubs in the world in terms of trophies and revenue.

As a club that has won 20 league titles, 12 FA Cups, 21 Community Shields, 5 league cups, three UEFA Champions Leagues, one UEFA Europa League, one UEFA Cup Winners’ Cup, one UEFA Super Cup, one Intercontinental Cup, and one FIFA Club World Cup, it has become a brand most people and other brands like to associate with.

The rich history of the Premier League club made it easier for it to be accepted when the club made its Initial public offering (IPO) via New York Stock Exchange on August 10, 2012, to become a publicly-traded company. The initial offering of Manchester United under Manchester United PLC was priced at $14.

Who owns Manchester United?

late Malcolm Irving Glazer, former owner of Manchester United
late Malcolm Irving Glazer, former owner of Manchester United

Though Manchester United was originally founded by the Lancashire and Yorkshire Railway Company, It is now owned and controlled by Manchester United PLC which became a publicly-traded company on New York Stock Exchange on August 10, 2012.

The company that its headquarters is at Sir Matt Busby Way, Old Trafford, Manchester, United Kingdom, was incorporated in the Cayman Islands, a British Overseas Territory.

Though no individual can be said to be the sole owner of the club, the Glazer family currently owns the highest shares of the club which is 10 percent. Hence, the family is seen as the indirect owner of the club since the family has more of the voting rights in Manchester United plc.

Joel and Avram Glazer, the two sons of late Malcolm Irving Glazer, an American businessman who acquired ownership of Manchester United in a £790m takeover by gradually buying out United shareholders between 2003 and 2005, are currently the co-chairmen of the Premier League club.

However, an English accountant and investment banker, Edward Woodward who is the executive vice-chairman and director of Manchester United, is the chief executive overseeing the club’s operations. He represents the club at Premier League club’s owner’s meetings and other official engagements.

Manchester United’s Board Of Directors

Avram Glazer – Executive Co-Chairman and Director

Joel Glazer – Executive Co-Chairman and Director

Edward Woodward – Executive Vice Chairman and Director

Richard Arnold – Group Managing Director and Director

Cliff Baty – Chief Financial Officer

Kevin Glazer – Director

Bryan Glazer – Director

Darcie Glazer Kassewitz – Director

Edward Glazer – Director

Robert Leitão – Independent Director

Manu Sawhney – Independent Director

John Hooks – Independent Director

Manchester United’s Business Model

Manchester United as a football club that is publicly traded operates as a professional football team that reviews its revenue on three basis – Commercial, Broadcasting, and Matchday.

As a professional football club, the club’s brand is monetized via three segments: sponsorship; retail, merchandising, apparel and product licensing; and mobile and content distribution.

The club’s sponsorship revenue was £173.0 million, £173.0 million, and £171.5 million for each of the years ended 30 June 2019, 2018, and 2017, respectively. While the club made £102.1 million, £102.8 million and £104.0 million for each of the years ended 30 June 2019, 2018, and 2017, respectively as retail, merchandising apparel, and product licensing revenue.

On revenue from broadcasting, Manchester United makes money from the distribution of live football content directly from the revenue the club’s receive and indirectly through increased global exposure for the club’s commercial partners. Also, the club’s owned Manchester United TV which delivers Manchester United programming to over 56 countries across the world. The club also has a D2C subscription mobile application that is available in over 167 territories.

More so, the club has made it possible for their fans to subscribe to the club’s content and watch them via Amazon Fire, Apple TV, Roku, and Xbox.

From Broadcasting alone, Manchester United made £241.2 million, £204.2 million, and £194.1 million for each of the years ended 30 June 2019, 2018, and 2017, respectively.

While United’s revenue from matchday was £110.8 million, £109.8 million and £111.6 million for each of the years ended 30 June 2019, 2018 and 2017, respectively. The club generated this revenue via the 99% attendance the club has been enjoying in those three years.

Manchester United’s Stock Price

Edward Woodward who is the executive vice-chairman and director of Manchester United
Edward Woodward who is the executive vice-chairman and director of Manchester United

Manchester United’s Stock price as at 12:13 GMT-4, 5 August 2020, has been enjoying a steady upward movement. As at the time mentioned earlier, the stock price was as high as 15.10 US dollars on the New York Stock Exchange. This means that the stock price has appreciated from the Initial public offering of 14 dollars to 15.10 dollars.

This implies that the stock price which previously closed at 14.69 dollars and opened at 14.85 dollars added 0.41 dollars which represents 2.79% jump. Hence, throughout the day, the stock price was fluctuating between 14.70 – 15.17 dollars. While in the last 52 weeks, Manchester United’s stock fluctuated between 12.06 – 20.48 dollars.

Manchester United’s performance in the stock market on August 5, 2020

Manchester United's performance in the stock market on August 5, 2020
Manchester United's performance in the stock market on August 5, 2020

Manchester United’s Stock symbol

Manchester United’s Stock symbol on the New York Stock Exchange is MANU, an alias of the club.

How to invest in Manchester United’s Stock

Since Manchester United is a publicly-traded company, it is opened to any interested investor. Any investor who is interested in having shares in the club is expected to purchase the club’s Class A common stock through a licensed securities broker.

Once this is done, such an investor will be entitled to a regular semi-annual cash dividend of $0.09 per share as a Class A ordinary shareholder or Class B ordinary shareholder out of the club’s operating cash flows.

Initially, Manchester United PLC pays its Class A and Class B ordinary shareholders quarterly cash dividend on the club’s Class A and Class B ordinary shares of $0.045 per share.

Hence, the new semi-annual cash dividend of $0.09 per share is subject to change and such a change is at the discretion of Manchester United’s board of directors. Such a change could be announced on or before the end of the club’s fiscal year which is June 30th of every year.

Those who invest in Manchester United’s shares are expected to contact their stockbroker whenever they have issues with their stock. Potential investors can make inquiries concerning the shares of the club through the Head of Investor Relations, Corinna Freedman via [email protected]

How much did Manchester United lose during COVID-19?

Manchester United home ground, Old Trafford
Manchester United home ground, Old Trafford

As at last check, Manchester United was yet to release the overall financial impact of the coronavirus pandemic on the club. However, in May 2020, the club released its third-quarter financial report which revealed that the club had lost a whopping £28 million as of then due to the pandemic.

According to the report, £20 million of the loss was the money they had to refund to broadcasters for the failure to go on with the matches which were scheduled for March. Recall that the coronavirus pandemic forced the Premier League to a halt for three months from March to June 2020. Hence, the Premier League clubs were made to refund parts of their earnings from broadcast earnings due to the change in schedule caused by the pandemic.

On the other hand, Manchester United revealed to its investors in March 2020 that the debt profile of the club has risen to £429 million between January and March 30th, 2020.

Based on the club’s report, the Red Devils incurred £127 million debt within the first three months in 2020. This implies that as of March 30th, 2020, Manchester United’s debt has increased by 42 percent when compared with the club’s net debt in 2019.

Manchester United Players 2020

Jersey No. Name of PlayerPosition Country
1 David de GeaGKSpain
2 Victor Lindelöf DFSweden
3 Eric BaillyDFIvory Coast
4 Phil JonesDFEngland
5 Harry Maguire (captain)DF England
6 Paul PogbaMF France
7 Alexis SanchezFW Chile
8 Juan MataMF Spain
9 Anthony MartialFW France
10 Marcus RashfordFW England
12 Chris SmallingDF England
13 Lee GrantGK England
14 Jesse LingardMF England
15 Andreas PereiraMF Brazil
16 Marcos RojoDF Argentina
17 FredMF Brazil
18 Bruno FernandesMF Portugal
20 Diogo DalotDF Portugal
21 Daniel JamesMF Wales
22 Sergio RomeroGK Argentina
23 Luke ShawDF England
24 Timothy Fosu-MensahDFNetherlands
25 Odion Ighalo (on loan from Shanghai Shenhua until 31 January 2021)FW Nigeria
26 Mason GreenwoodFW England
29 Aaron Wan-BissakaDF England
31 Nemanja MatićMF Serbia
37 James GarnerMF England
38 Axel TuanzebeDF England
39 Scott McTominayMF Scott McTominayScotland
40 Joel Castro PereiraGK Portugal
44 Tahith ChongMF Netherlands
53 Brandon WilliamsDF England

Manchester United’s ticket sales

Manchester United home ground, Old Trafford
Manchester United home ground, Old Trafford

Just like other professional football clubs across the world, Manchester United makes a lot of money from the sales of matchday tickets. The home ground of the club, Old Trafford, can seat 74,140 people per match and it is always 99 percent filled to capacity in every match in the last 21 years.

However, since early March 2020, the club has not had the opportunity of generating revenue from matchday ticket sales due to the coronavirus pandemic which forced the remaining 92 fixtures in the just concluded 2019-2020 season to be played behind closed doors.

Before the pandemic, the money generated from ticket sales at Old Trafford accounts for 18% of the total revenue of the club in 2019. Manchester United made over £111 million from ticket sales alone. Though the club is yet to release its 2020 financial report, it is certain that the club would not make such an amount of revenue in the just-concluded season.

How to get Match tickets for Manchester United home matches

Before the coronavirus pandemic forced Premier League matches to be played behind closed doors, match tickets for Premier League games at Old Trafford are sold exclusively to official members of the club.

The official members of the club are given the opportunity to purchase 1 ticket for each home game. For some home games, most of the members have to enter a ballot due to the high demand for the tickets.

Both non-members and members of the club can purchase match tickets or book ahead through the official website of the club or via other tickets selling sites that have the license to sell the club’s matchdays ticket.

Manchester United’s match ticket prices

According to the official website of Manchester United, the match ticket prices for the club’s Premier League home games at Old Trafford are determined by both the age of a supporter, and by the area of the stadium in which the supporter wishes to sit.

Here are Manchester United’s ticket prices

Price Band: Red
Adult age 21-64: £58
Under 16: £13
Age 16-17: £28
Age 18-20: £45.50
Age 65+: £28

Price Band: Silver
Adult age 21-64: £55
Under 16: £13
Age 16-17: £28
Age 18-20: £43.25
Age 65+: £28

Price Band: Green
Adult age 21-64: £50
Under 16: £13
Age 16-17: £28
Age 18-20: £39.50
Age 65+: £2

Price Band: Blue
Adult age 21-64: £52
Under 16: £13
Age 16-17: £28
Age 18-20: £41
Age 65+: £28

Price Band: Orange
Adult age 21-64: £46
Under 16: £13
Age 16-17: £27
Age 18-20: £36.50
Age 65+: £27

Price Band: Yellow
Adult age 21-64: £45
Under 16: £13
Age 16-17: £26.50
Age 18-20: £35.75
Age 65+: £26.50

Price Band: Black
Adult age 21-64: £43
Under 16: £13
Age 16-17: £25.50
Age 18-20: £34.25
Age 65+: £25.50

Price Band: Pink
Adult age 21-64: £42
Under 16: £13
Age 16-17: £25
Age 18-20: £33.5
Age 65+: £25

Price Band: Purple
Adult age 21-64: £36
Under 16: £13
Age 16-17: £22
Age 18-20: £29
Age 65+: £22