Manchester United: Record-Breaking 20% Share Price Drop Sends Shockwaves Through Football World

Manchester United's share price experienced its largest decline to date, plummeting over 20% on Tuesday in response to recent reports that the Glazer family had intentions of delisting the club from the market. Closing at $23.66 on Friday, the share price reached a low of $18.83 on Tuesday and currently stands at $19.02.

The New York Stock Exchange remained closed on Monday due to the observance of Labor Day.

Presently, we are experiencing the most significant market downturn since United went public 11 years ago. The previous record drop of 13.8 per cent occurred on March 12, 2020. Currently, the market is down by 19.6 per cent.

The club's worth declined by up to £550m on Tuesday, bringing its current market capitalization to £3bn ($3.86bn), which is twice the Glazers' asking price of £6bn. However, the offers from Sheikh Jassim and Jim Ratcliffe estimate United's value to be closer to £5bn.

The share price has dropped by almost 30 per cent since 12-month high in February.

Man Utd bidders remain interested and not been told sale is off

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Jim Ratcliffe and Sheikh Jassim have made bids for Manchester United

The bidders hoping to buy Manchester United still remain interested in a takeover and believe the club remains up for sale.

According to a report in The Mail on Sunday, it has been alleged that the Glazers have intentions of temporarily removing Man Utd from the market, only to put the club up for sale again in 2025 once they believe its valuation of £7bn-£10bn can be achieved. Notably, individuals involved in the takeover negotiations, such as merchant bank Raine, have not been informed about any alterations in this regard.

Sheikh Jassim and Sir Jim Ratcliffe emerged as the sole significant bidders during the takeover process. However, they failed to meet the valuation set by the Glazers, who were seeking £6bn. It has been widely speculated that the Glazers may choose not to sell, as they have never officially listed the club for sale.

US hedge fund, Elliott Management, had shown interest in investing in the club, potentially enabling the Glazers to retain their majority shareholding. However, Manchester United fans have continuously expressed their opposition to the Glazers' ownership since their leveraged buyout in 2005, and it appears that dissatisfaction with the family is currently at its peak.

"Man United bidders have always believed that there is a significant likelihood that the Glazers will not sell," stated Kaveh Solhekol, a reporter from We News. "The idea behind spreading rumors that Ratcliffe had won was to increase the competitiveness of the Qatar bid. Similarly, stories suggesting that Qatar had won were intended to make Ratcliffe's bid more competitive. Furthermore, rumors of the sale being canceled were intended to generate increased interest and higher bids from both parties."

Neville sceptical Glazers will take Man Utd off the market

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We pundit Gary Neville says he does not believe the Glazers are actually taking the club off the market.

"I simply cannot believe that the report is accurate," expressed the ex-captain of United to We News. "This is just a tactic employed by them for a considerable period of time to manipulate stories. I fail to see how they can retain ownership of the club as they are financially insolvent.

"Those familiar with the club's economic predicament are well aware of its gravity. Continuously attributing it to FFP, they repeatedly claim their inability to acquire new players and similar reasons."

"They have spent and invested money this summer, but now they need to generate revenue. This can be achieved through either diluting their shares, taking on additional debt - although this seems unlikely given their current financial situation - or by selling the business. Selling the business appears to be the most probable option.

"They are employing a strategy commonly used in negotiations, which involves attempting to increase the price. They remain calm and steadfast, avoiding hasty decisions. Being experienced business people, they understand that by prolonging the process, they may be able to secure a slightly higher price."

"I can't believe the story to be true because they need money desperately into the club."

'Desperate Glazers treating Man Utd like a toy'

After Man Utd's 3-1 loss to Arsenal on Sunday, the ex-United defender sharply criticized the Glazers for their mishandling of the club. He accused them of treating the club as nothing more than a plaything during the takeover saga.

"They see it as just a game, like a toy!" declared Neville. "It's no surprise they want to sell. They're desperate for money."

"They are no longer capable of competing in the FFP. When it comes to the transfer market, Manchester United speaks like a club positioned in the middle of the table. With a turnover of £500m, Manchester United is one of the top revenue-generating clubs globally.

"Meanwhile, Chelsea and Arsenal have the ability to sign prominent players, while Manchester United is struggling with the restrictions of FFP. Although it can be argued that the losses incurred due to Covid-19 could be used as an excuse for their situation."

Today's game was absolutely amazing, however, the unfortunate reality remains that the owners of one of the most renowned clubs in the world are irresponsibly meddling with the football club. I will continue to voice my concerns about this immense issue without hesitation.