Manchester United: Impact Of Man City Valuation

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About: Manchester United plc (MANU)
by: The Prospector
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The Prospector
Long only, Growth
Summary

Manchester City announced it received a private equity investment that values the club at $4.8 billion.

Rival Manchester United, once the most valuable sports franchise in the world, is not even the most valuable soccer team in its city anymore.

Struggles in recent years on the field have impacted Manchester United's valuation as it has struggled to consistently contend for trophies and lucrative Champions League payouts.

Despite MANU struggles, it is still a powerful soccer brand that Man City still yearns to become. MANU outsold Man City in commercial revenue last year by a wide margin.

If MANU can continue to improve on the pitch, today's valuation of just $3 billion may look like a bargain in the future.

Thesis

Recent news of a private equity investment in English Premier League soccer club, Manchester City, sent shares of Manchester United (MANU) soaring. As I stated in a previous article, one could