Manchester United's stock price has been hit through the roof following the announcement of the European Super League. The Red Devils are one of 12 founding members of the new continental competition, along with their fellow 'Big Six' Premier League sides. And while their involvement has been massively criticised by fans and pundits alike, Man United have already seen their stocks increase with investors raced into shares as they predicted big new revenue streams.
According to the latest Manchester United Super League report by UK's Mirror, news of Manchester United's involvement in the European Super League resulted in a sharp increase in share prices, with the Manchester United stock price resulting in the rise of the value of the club's shares by over $250 million (£180 million) less than 24 hours after the breakaway league was officially unveiled. The Man United stock price grew by more than 10% and was valued up to $1.56 at $17.72, adding around $289 million to the paper value of the club. The European Super League teams will receive an amount of €3.5 billion (£3.03 billion, $4.2 billion) solely to support their infrastructure investment plans and to offset the impact of the COVID pandemic.
The European Super League is financed by JP Morgan and has adopted an American style whereby its founding members cannot be relegated from the division. The division is expected to generate hugely lucrative television contracts and it is reported that the European Super League teams will receive a 'welcome bonus' of up to €300 million (£258 million) for signing up. This is also set to impact the Liverpool stock price as well. The league however has led to widespread criticism from Boris Johnson, UEFA and the Premier League and is bound to clash with the tournament and other domestic competitions as well.
Man United shares up 9%....Juve shares up 19% at peak trading today. Fans don’t like it but money moving into these stocks today. JPMorgan also backing the Super League.— Maria Tadeo (@mariatad) April 19, 2021
The joint statement published by the 12 founding clubs declared their new annual tournament "will provide significantly greater economic growth and support for European football". Manchester United chiefs cited "The instability in the existing European football economic model" as they explained their decision to form part of the breakaway league. Joel Glazer, co-chairman of Manchester United and vice-chairman of the Super League, said in the statement, "By bringing together the world’s greatest clubs and players to play each other throughout the season, the Super League will open a new chapter for European football, ensuring world-class competition and facilities, and increased financial support for the wider football pyramid".
Manchester United are one of the few teams with multiple Champions League titles and have a rich legacy in the UEFA Champions League. The Red Devils won the European Cup for the first time in its history in 1968, 10 years after they lost most of their first-team squad in a plane crash in Munich. None of the succeeding managers could replicate Sir Matt Bubsy's success, and it took Sir Alex Ferguson 13 years before he clinched his first title. Manchester United lifted the Champions League in 1999 winning the famous treble and added another win in 2008, beating Chelsea in the final. The Red Devils reached the finals on two more occasions, where they were comfortably beaten by Pep Guardiola's Barcelona.