United shares rise after Moyes departs
Manchester United’s share price rose dramatically after David Moyes’ sacking as investors rushed to buy stocks in the 2013 Premier League champions.
Wall Street reacted to news of Moyes’ departure on Tuesday morning as the United share price went up by more than $1, and by over 7 percent, in the space of three hours.
It took United’s share price, which was $17.72 before trading opened, to $19.00 by 17.55 BST (12.55 ET) in a sign that there is greater financial confidence in the club’s future without manager Moyes.
The United share price reached its highest level since the announcement of Sir Alex Ferguson’s retirement last May and had not been at $19 for 11 months.
The highest price shares have reached in the last year was $19.18 last May, after United had won the 2013 Premier League title and while Ferguson was still in charge.
The Glazers, the club's American owners, likely would have been concerned that next season's exile from Europe's top club competition may have dragged on for years at a time when player costs are high and interest payments on the club's debts are a real burden. Big United sponsors, such as Nike, may have become restless, according to The Associated Press.
"Clearly Nike and other sponsors are paying for one of the best and most recognized football brands in the world -- not one that cannot even make the Champions League," said Louise Cooper, an independent financial analyst in London. "The financials ensured that Moyes was not given the time to perform."
Ten percent of United’s shares were floated on the New York Stock Exchange in August 2012 in a partial Initial Public Offering (IPO).
The other 90 percent of the shares remain owned by the Glazer family, who bought the club in 2005.
At a share price of $19.00, United are valued at around $3.3 billion.
United’s share price was at its lowest level in Moyes’ nine-month reign in February, when it bottomed out at $14.26.
Information from The Associated Press was used in this report.