Manchester United suffers $520 million wipe-out
MANCHESTER United has experienced a volatile few months both on and off the pitch, but their share price took more of a battering than their players have this week.
When the New York Stock Exchange slammed shut on Wednesday (AEDT), United's shares sat at $US18.19 which was eight per cent lower than they were at the start of the day, The Sun reports.
The English giants earns plenty of money through sponsorship deals and the like, which led to Forbes hailing them as the most valuable team in the world earlier this year.
It saw the club's share value rise to a record $US27.70 less than three months ago
But they've sailed into stormy seas this week.
The crash to $18.19 represents a $520 million (£300m) wipe-out.
Fortunately for the world's richest club, you can lose half a billion dollars and barely bat an eyelid.
On the final day of the transfer window, August 9, United's share price was steadily on the increase and by the time the summer had finished, on 31 August, it was at the highest point of the year $US26.20.
The price has fluctuated over the last few months, which could well be as a result of both the uncertainty surrounding Jose Mourinho's future and the Glazer family's plans.
When trading started yesterday, United's shares were valued at $19.92, but the drop in value was the biggest in over a year.
Fortunately for United, who are reportedly not concerned about the sharp decline in price, normal service has resumed.
The share price has somewhat recovered this morning and trading has not yet ceased for the day.
At the time of writing, United's share price sits back at $19.08, which is roughly a four per cent increase throughout the day.
The Red Devils were last month linked with a Saudi Arabian prince's powerplay to buy a majority stake in the club.
The Sun reported Crown Prince Mohammad bin Salman - whose family is worth around £850bn - wants to take on Middle East rivals like the Abu Dhabi-based owners of Manchester City.
And they think he is ready to sanction a bid by an individual or a move backed by the money of the oil-rich state to take a stake in United or, ideally, to buy the club outright.
Even if United's owners, the Glazer family, were willing to consider selling, it would cost the Saudis more than £3 billion.
But the Saudis have the money and, it is said, the desire to make a big splash in football.
The country has already made investments in sport through deals with F1 and WWE.
- This story originally appeared in thesun.co.uk