Manchester United (NYSE:MANU) has been reported as the world’s most valuable football club, with a valuation of $6.2 billion according to Sportico. However, its U.S.-listed shares, trading around $16.92, reflect a market value of only $2.8 billion. Despite the peculiarities of football club valuations, I am bullish on Manchester United stock due to the club’s turnaround efforts, long-term revenue growth, and potential buyout opportunities, making this dip a potential buying opportunity.
Manchester United’s shares have experienced significant volatility over the past year due to takeover speculation involving a Qatari consortium and INEOS CEO Jim Ratcliffe. Initially, Sheikh Jassim bin Hamad al Thani’s bid, which included all of the Glazer family’s shares, pushed the stock up to around $27. However, the Glazers preferred Ratcliffe’s offer, resulting in his acquisition of a 28% stake in the club. This decision disappointed retail investors, causing the stock to fall to as low as $13.50. Despite these fluctuations, the club’s unique market position and potential for future growth make it an intriguing investment.