Chew on that Jerry Jones!
Man U is the first $3 Billion sports franchise and by far the most valuable club in the world.
A surge in the club’s shares after a poor start when they were offered on the New York Stock Exchange in August has seen the overall value of United rise to $3.3 billion.
According to Forbes, United is comfortably ahead of the world’s second-most-valuable sports team, the NFL’s Dallas Cowboys, worth $2.1 billion.
The United shares were initially offered to the public at $14 and are now worth just under $17. The market cap — or the outstanding value of the team’s market share — is $2.78 billion.
The demand for shares of the 19-time English champion grew after better earnings and new sponsorship deals with Japan’s Kansai and China Construction Bank, despite a drop in first-quarter earnings because of a reduction in television revenue.
I can already hear local sports radio struggling to come to terms with this news. Even though several soccer clubs are annually listed atop Forbes Top 50 Sports Franchises, the reaction’s always the same – no way, a soccer team? Yes, folks. Soccer.
How many Man U fans out there are feeling pretty smart after asking for a share of MANU stock for Christmas or their birthday? Okay, we’re still only talking about 3 bucks to those folks, but for those that really bet big, the return on their investment is beginning to look rather promising.
And as Matt Fitzgerald at Bleacher Report points out; should Man U claim either or both the EPL and Champions League title this year, the stock could rise even further.
Shares of the English soccer team, which were offered to the public last August at $14, did poorly at first but have soared the past few days. Last seen at just under $17, Manchester United’s stock has outperformed the S&P 500 since its IPO and made the controlling Glazer family and legendary investor George Soros, who bought a big stake in the team shortly after it went public, wealthier.
The recent increase in its stock price has pushed up Manchester Untied’s enterprise value (equity plus debt) to $3.3 billion, the highest value of any team in the world. The second most valuable sports team in the world are the NFL’s Dallas Cowboys, worth $2.1 billion.