The IPO valued Manchester United, known wolrdwide as Man U, at $2.3 billion but shaved off nearly $100 off the proceeds for the team and its owners. Man U is one of the best soccer teams in the world and have won the English Premier League, the world’s top league, a total of 19 times with even more championships in the Champions League and associated tournaments.
Despite the fanfare regarding the IPO, investors should stay away from the stock as a trading tool and see the investment as a collectible rather than a profitable trade. Investors will have little control over the team’s activities and control is likely to remain with the current owners. In additon, publicly traded sports teams rarley outperform the market and if they do, they do not issue a dividend and offer little control of company decisions. Finally, it should be noted that, historically, even on field performance has little effect on publicly traded sports teams. For example, the Cleveland Indians stock did not increase substantially even after five straight AL Central winning seasons.
In conclusion, if you love Manchester United, feel free to buy one share of their common stock and hang the certificate above your bed, but should you expect return on your investment over the next few years? No.