Kieran Maguire shares incredible £221m Man United development
Man United PLC’s market value rocketed by an incredible £221million immediately after Cristiano Ronaldo signed – but those gains are only short-term.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider after United confirmed the capture of Ronaldo on 31 August.
The deal to bring the global superstar back to Old Trafford was agreed in principle on 27 August before terms were finalised on deadline day.
United’s share price immediately rocketed as investors recognised the commercial and footballing success that the 36-year-old could bring.
But Maguire highlights that the club’s astronomical boost on the New York Stock Exchange was merely a temporary phenomenon.
“I don’t think his arrival is significant in terms of the stock market in the long term,” he told Football Insider correspondent Adam Williams.
“The deal was revealed last Friday. The share price last Thursday was $17.22. It then went up to $18.75 when the announcement came through.
“Now, almost all of these gains have been priced out of the market. Profit taking has taken place and we’re down to $17.62.
“What happens is that there’s an immediate knee-jerk reaction in the market, but people recalculate their figures very rapidly.
“There were 700,000 shares being traded in the hour that Cristiano Ronaldo was signed. By yesterday, that was down to about 9,000 per hour.
“There is excitement, and excitement drives up the price. The markets are not as sophisticated as people make them out to be.
“There tends to be initial demand for shares before people realise it probably won’t have a long-term impact on the club.
“That’s where we are at present. The share price is up a bit compared to a week ago, but we’re not talking significant numbers.“
In other news, pundit claims Man United missed out on the deal of the window after £34m reveal.