‘This is good news’ – Man United struck by dramatic off-pitch development
Man United have received a piece of positive news which will impact the clubs biggest shareholders and investors.
That is according to football finance expert Dr Dan Plumley who has exclusively told Football Insider the potential implications of Man United‘s share price increasing by 8% amid talks of a takeover.
Saudi investors are thought not to be behind a Man United takeover as Sir Jim Ratcliffe publicly backed manager Ruben Amorim to improve the club’s fortunes on the pitch.
Ratcliffe has plans to build a new stadium for Man United and increase the club’s capacity to 100,000 as the owner continues to make plenty of changes behind the scenes.
Share price increase a reaction to takeover talk
Speaking exclusively to Football Insider, Plumley doesn’t think the increase in share price will have any impact on the day-to-day running of the club.
“It’s a reaction to the media stuff we saw around the Saudi Arabia potential, the quote from the fairly well renowned Saudi Arabia individual who put this out there and speculated around a takeover that’s what’s driven the share price up ultimately,” Plumley commented.
“It’s absolutely fuelled by speculation around a takeover. For what it means for the club, it’s more for the shareholders, the investors, any share price going up reflects positively on them ultimately and that means that the share price is higher.
“It won’t make too big a difference to the day-to-day finances and the operations of the club. In terms of the share price going up you treat those things as good news stories for a company that the share price is increasing.
“That share price ultimately is going to benefit the shareholders and the investors at a certain point in time, which is again the other side of the coin with this one because the current owners don’t look like they want to sell right now and Jim Ratcliffe came in for the minority stakes so its them who would benefit from a share increase but obviously they are not looking to sell the club.”
Man United finding way to raise money
Man United’s failure to qualify for European football last season has left a hole in their revenue streams which they are so often reliant on.
To make up for the lost revenue of hosting European matches, Man United may play mid-season friendlies in Saudi Arabia, whilst having a warm weather training camp in the Middle East.
Such a move could earn Man United £15million extra in revenue which would be a boost to the finances.