Apart from being a sport, the modern version of football also happens to be a business. As of such, clubs and players suffer from the usual plight of businesses, with profits and losses being part and parcel of the high-octave financial market, ever riddled with unpredictability.
Now, at a powerhouse like Manchester United, which boasts of an incredible fan-following and a resilient financial history, things may not be going all too well.
While their on-the-pitch showing has been a mixed basket so far, mostly leaning on the disappointing end on the spectrum of results, the club may now have a bigger worry at hand.
As reported by the Independent, Manchester United’s share price, as listed on the New York Stock Exchange, took a heavy beating on Tuesday. As a result, the club’s stock value dropped by over £300 million, their largest loss in over a year.
At the start of the trading day, the price stood at $19.92 a share, a far cry from their all-time high value of $27.70 in August. However, at the end of the day, the stock closed priced at $18.19 a share, a staggering 8.68% loss, and their lowest since last month.
However, the report adds that this activity is not a result of any of the club’s own antics or woes, but is rather the domino effect of a volatile market which is responding in line, as other similar stocks were also seen to be suffering nearly identical losses.
The Old Trafford outfit had also announced their latest financial results last week, with a 6.1% decline in their revenue for the first quarter.
This loss is believed to be due to their shorter pre-season tour as well as a general reduction in the number of home games that the club has played so far into the season, in contrast with last season.
That last statistic, in particular, seems to indicate that by the time the mid-season rolls out and the market has stabilized, United may see a healthy return to their prices. At the same time, investors will be hoping that their on-field antics don’t cause any fluctuation in business activity next time around.