English soccer club Manchester United seems to be a growing blue chip investment off late, especially after it became the most valued soccer club of the world. In recent developments, a US investment firm BlackRock has bought around 8 percent of the club’s Class A shares through open market. Glazer family, controlling stock holder, will still hold the controlling powers in the club coz they have Class B share which have ten times more voting power than Class A shares. In reality, ManU stocks have been volatile in recent few weeks in London stock exchange whereby their value has already been surged by around 35% in past three months, and after this buyout, coming days are also supposed to be money carrier for the club. Financially, it is one of the biggest investments in the club after it went public last August. The formal information to Securities and Exchange Commission will be communicated by Wednesday. Actually, English club has made many significant financial decisions where it paid off around £62.6 million of high-interest bonds last year that reduced its liabilities comprehensively.
The Glazer family, who holds the controlling powers in the club, as told, will still enjoy its ownership despite this concentrated stock takeover by BlackRock coz of the block deal they did in 2005 wherein they took over around 124 million Class B shares and 39 million Class A shares, and more importantly, class A shares gave them ten times more authority than Class B shareholders.
In reality, Manchester United is one of the premium investment opportunities for investors across the world and that is why every big corporate house is trying to sign a sponsorship deal with them. Last year, United entered few big sponsorship deals with some of the biggest corporate houses, and their performance in the field has also been impressive to lure investors. Its current leading position in the EPL is helping it gain significant momentum throughout its financial status. Comings few weeks are supposed to be highly volatile for its stock in the financial market, especially when retail investors will jump onto it.
When it went public last year, its stocks were not so alluring for investors; perhaps there was a downfall in its initial period. Primarily, it was because of Glazer family’s hasty decisions where they loaded the club with hefty loans. But now, everything is running in favor of the EPL leader. So, enjoy following one of the biggest fan following soccer clubs having more than 659 million fans!