Manchester United Gains Significant Boost with 25% Stake Sale to Jim Ratcliffe
December 28, 2023
☀️Trending News
Manchester United ($NYSE:MANU) has recently received a significant boost with Jim Ratcliffe’s acquisition of a 25% stake in the club. Ratcliffe is the founder and chairman of petrochemicals giant Ineos, estimated to be the UK’s richest man. Part of the world-renowned Red Devils brand, Manchester United is listed on the New York Stock Exchange and is valued at more than $2 billion. The acquisition of a 25% stake by Ratcliffe will provide an invaluable lift to the club, allowing them to expand their fan base and leverage their brand to further success.
The sale of a 25% stake to Ratcliffe is a major indicator of Manchester United’s financial security and potential for long-term success. It will enable the club to invest more in its squad and facilities, and will give them greater opportunities to expand their commercial operations and capitalize on their global reach. With the financial backing of Ratcliffe, Manchester United can look forward to increasing their success both domestically and internationally in the years to come.
Analysis
At GoodWhale, we have conducted an in-depth analysis of the financials of Manchester United. Our star rating shows that Manchester United is strong in asset, medium in growth, and weak in dividend and profitability. With the evidence presented, we can conclude that Manchester United is classified as a ‘cheetah’, a type of company which achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company may attract investors who are interested in taking a higher risk to achieve a potentially higher reward. However, the company’s low health score of 2/10, which considers its cashflows and debt, is less likely to pay off debt and fund future operations. Therefore, potential investors should be aware of this before investing. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Manchester United. More…
| Total Revenues | Net Income | Net Margin |
| 648.4 | -28.68 | -9.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Manchester United. More…
| Operations | Investing | Financing |
| 95.77 | -140.16 | -1.95 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Manchester United. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.32k | 1.21k | 0.64 |
Key Ratios Snapshot
Some of the financial key ratios for Manchester United are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.4% | -18.3% | 1.5% |
| FCF Margin | ROE | ROA |
| -11.7% | 6.0% | 0.5% |
Peers
Since its establishment in 1902, Manchester United PLC has been one of the most successful soccer clubs in the world. The English club has won 20 league titles, 12 FA Cups, five League Cups, and three European Cups. In recent years, Manchester United PLC has been competing with Futebol Clube do Porto – Futebol SAD, Bonhill Group PLC, Live Co Group PLC, and other companies for the title of most successful soccer club.
– Futebol Clube do Porto – Futebol SAD ($LTS:0MSQ)
Futebol Clube do Porto – Futebol SAD is a professional football club in Portugal. The club is based in the city of Porto and plays in the Primeira Liga, the top flight of Portuguese football. The club was founded in 1893 and has won the Primeira Liga title a record 27 times, the Taça de Portugal a record 25 times, the Taça da Liga a record 7 times, and the UEFA Champions League twice. The club has also won the UEFA Cup twice and the UEFA Super Cup once.
– Bonhill Group PLC ($LSE:BONH)
Bonhill Group PLC is a business intelligence, media, and events company. The company operates in three segments: Business Information, Events, and Media. The Business Information segment provides critical intelligence and analysis on the people, companies, and deals that shape the technology, media, and telecoms markets. The Events segment produces live events that connect and inform technology, media, and telecoms professionals. The Media segment provides news and insight on the technology, media, and telecoms markets.
– Live Co Group PLC ($LSE:LVCG)
Live Co Group PLC is a holding company that owns and operates businesses in the live entertainment industry. The company has a market cap of 6.74M as of 2022 and a Return on Equity of -28.65%. The company’s businesses include live music venues, ticketing platforms, and artist management. The company’s mission is to provide live entertainment experiences that inspire, connect, and entertain people around the world.
Summary
Manchester United recently announced a deal to sell 25% of its stake to Jim Ratcliffe, the Chairman and owner of Ineos, one of the world’s largest chemical companies. This move saw Manchester United’s stock price jump significantly on the same day, indicating a positive response from investors. Analysts suggest that this move may be beneficial to Manchester United due to Ratcliffe’s experience in the chemical industry and his knowledge of how to maximize the value of a company.
In addition, Ratcliffe’s experience could help Manchester United capitalize on new revenue streams and increase its visibility in the market. All in all, this move seems to be a strategic one for Manchester United and could be beneficial in terms of increasing shareholder value.
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