Exciting transfers, success on the pitch and investors hoping for a takeover have added £450m to Manchester United’s value in a month.
The club’s shares, quoted on the New York Stock Exchange, have seen their price rise steadily after a sharp decline at the end of last season, which saw United record their worst finish in the Premier League.
Then, the club slipped to seventh place, recording just 57 points. However, after a shaky start, which saw the Red Devils lose at home to Brighton, before being thrashed at Brentford, their performances and prospects have brightened under new manager Erik Ten Hag.
United are now on a run of four consecutive wins with their new signings, Lisandro Martinez, Tyrell Malacia, Antony and Casemiro all having a positive impact.
Players and fans are believing again as United begin their Europa League campaign tonight against Real Sociedad. And the feelgood factor has spread beyond the dressing room and Old Trafford to investors, who have found a new desire for the club’s stock.
Yesterday United's shares closed at $14.56, up from $11.39 o August 9, a rise of 28 per cent.
However, while success on the pitch may whet the appetite of potential buyers, what is also driving demand for shares are rumours of a takeover, said football finance expert, Kieran Maguire.
‘It is an increase in the value of the club as far as the market is concerned. Some people are buying into Manchester United’s shares on a speculative basis because they think an offer is going to come in,’ Maguire told Sportsmail.
In mid-August, Sir Jim Ratcliffe, Britain's richest man and a lifelong United fan, excited fans by telling The Times he was interested in buying the club.
Supporters, who routinely protest against the current owners, the Glazer family, over the management of the club and its enduring debt, were delighted and hopeful for a change in ownership.
However, Maguire said the increasing value of United’s shares did not indicate those hopes were about to be realised.
‘The fact that the share price has only risen to just over $14 shows there is not much credibility in those rumours,’ said the University of Liverpool expert.
On the basis that United would be sold for a figure of around $4billion, Maguire said the share price would be expected to reach around $25, ahead of a sale going through, which would mean those who bought in recent weeks would make a tidy profit.
‘We are a long way off that and there is no indication that the Glazers want to sell, or anyone is willing to buy,’ cautioned Maguire.
‘People are buying based on rumour and gossip rather than anything concrete. What we are seeing at present is a lot of speculative purchasing at $12 or $13 in the hope someone will come with an offer but there is not evidence to support that.’