One of Manchester United's largest shareholders has criticised the club for 'poor investment in players and personnel' after the club's stock price dropped last month.
BAMCO, Inc - a subsidiary of Baron Funds - currently owns just over 13 million shares in United, which are said to be worth around £173 million.
However, they have failed to gain any returns on those shares in the last 12 months after the price on the New York Stock Exchange dropped from around $26 (£20) per share in September 2018 to just below $16 (£12) in October 2019.
In a recent quarterly report to their investors in August, the content of which were reported by Manchester Evening News, Baron Funds claimed the reduction in value was due to a series of poor investments.
The company said: 'The stock price of Manchester United plc...has declined because of recent poor investments in players and personnel.
'We feel, however, the club's on field success will eventually improve and its loyal fans, whose allegiance goes back generations, will continue to support their team.
'The team is also taking steps to improve interaction with its supporters through digital experiences. Expiring contracts should be renewed at higher values, which will lead to increased profitability.
'We believe the company's private market value is probably 50-to-100 times higher than the price of its shares.'
Baron Funds decided to invest in the club when shares in United first became available to purchase on the New York Stock Exchange in 2012.
It is also claimed the fund has been slowly reducing the size of their position in the club after getting rid of 750,000 shares in February and a further 300,000 since.
But Ron Baron, the founder of Baron Funds, insists the firm are 'long-term investors'.
It comes after Ed Woodword insisted the Glazer family have no plans to sell the club and ‘are in it for the long-term’ despite speculation over a takeover bid from the rulers of Saudi Arabia.
The Americans have been unpopular among many fans since acquiring United in 2005, and are coming under renewed attack following the club’s poor start to the season.
It has coincided with reports that Saudi’s Crown Prince Mohammed Bin Salman is prepared to pay in excess of £3billion to buy United, but Woodward claims the Glazers want to remain at the helm and have not held any discussions about selling up.
‘Based on what I see, they're in it for the long-term,’ said United’s executive vice-chairman
‘With regards to offers or asking prices, my understanding is that there have been no discussions for a price for the club or anything like that. Every conversation we have is based on the long-term.’
One of the main criticisms of the Glazers is the debt saddled on United by their leveraged £780m buyout which currently stands at £511m.
But in an interview with fanzine United We Stand, Woodward played down that figure, saying: ‘The debt is a long-term, structured and similar to some other football clubs.
‘It's a fixed amount for a fixed period of time which results in it being fairly cheap to service.
‘It's just under two per cent our annual revenue each year, so it doesn't really have any impact on us.’