Manchester United Shares Drop as Glazer Family Weighs Keeping Control

Manchester United plunged on a report that the Glazer family may stay at the helm of the sports club.

(Bloomberg) — Manchester United plunged on a report that the Glazer family may stay at the helm of the sports club.

The shares fell 11% Monday, bringing shares to the lowest level since November, after ESPN reported that Avram and Joel Glazer — current executive co-chairmen and directors of Manchester United — are increasingly confident of securing outside investment that would allow them to remain owners of the club, according to a source familiar with the situation.

The slump comes amid a volatile five-months for the club after the Glazers, who have owned the football club since 2005, started exploring strategic alternatives including a possible sale in November.

The possibility of a sale of their controlling stake sent shares up 62% in one week last November, and a potential Saudi buyout bid pushed the stock to an all-time high in February. Shares have since been whiplashed as investors try to assess what shape the deal may take.

Under Manchester United’s current dual-share class structure the Glazer family holds around a 67% economic interest through class B shares in the club as well as nearly 96% of total voting power. Traders who own minority class A shares are concerned that a partial sale would mean they have no clear exit on the horizon, while the upside for the stock is limited.

The American family is also asking the remaining bidders for the Premier League team to increase their offers and prove they could complete proposed deals, the Financial Times reported over the weekend. Those bidding in the final round include British billionaire Sir Jim Ratcliffe and Sheikh Jassim bin Hamad Al-Thani, the son of the former emir of Qatar.

There are other smaller offers on the table as well. Carlyle Group Inc. is also in talks to buy a minority stake in the club, according to a Sky News report citing an unidentified person close to the development.

More than 2,000 contracts of $22 puts expiring Friday versus $20 puts expiring June 16 traded Monday, according to block trade data compiled by Bloomberg, which may be traders rolling newly profitable bearish bets out further in time.

(Updates stock move at close)

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