Manchester United’s shares have dropped to a record low on Monday, meaning the total value of the club dropped by over £1.3 billion.
At the close of trading yesterday, the share price of Manchester United Plc was sat at $11.07 USD, which is a drop of 47% since October 2021. This news comes in just one month after the United accounts revealed that the club’s debt had risen a further 11.8% compared to this time last year, with debt edging dangerously close to half a billion pounds.
Manchester United’s owners, the Glazer family, have been made to feel unwelcome at the club by the fans since the moment they assumed control.
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A breakaway group was even formed in the form of a football club called FC United of Manchester in protest of the club’s new acquisition, and there have been many further protests throughout the years as the Red Devils’ debt kept rising.
Most recently, there was a large-scale protest outside Old Trafford on the 2nd May 2021 ahead of a clash between the club and arch rivals Liverpool.
The green and gold colours have become synonymous with the anti-Glazer campaign, with #GlazersOut trending several times a year across major political platforms.
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It has been suggested that the reason for this catastrophic drop in share price, which stood at $20.47 USD just 9 months ago after the resigning of famed and beloved forwards Cristiano Ronaldo, is due to wider economic market fears, but also more specifically due to the current intention to create a new first team squad under Erik ten Hag and regenerate a falling-apart Old Trafford football ground.
According to Rich Fay of the Manchester Evening News, this means that the share prices of Manchester United have dropped by an overall 21% since the Glazers purchased the club in 2005.
Another segment of United’s financial dealings which often angers fans are the dividends paid out to shareholders twice a year from the club’s accounts.
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Every January and June, dividends are paid to all shareholders, the majority of said shares being owned by the six members of the Glazer family. Despite the rise in debt and loss of club value, these dividends are set to be paid as normal.
Manchester United are the only club in the Premier League to pay regular dividends of any kind, with the Glazer family receiving a total of over £125 million in payments (as of May 2021).
The majority of this money has been paid out in the last six seasons, which is reportedly similar to the time in which debt payments run dry.
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There has been a significant amount of pressure from fans of the football club for the Glazers to sell their British asset, however with the appointment of Erik ten Hag as manager and general reconstruction of the higher-ups that run the football club, it is likely that the Glazers have no intention of selling the club any time soon.
Topics: Manchester United, Football
Dylan Penketh