Manchester United PLC (MANU) stock prices were down by 14.22% shortly after market trading commenced on October 6th, 2021. This brought the price per share down to USD$16.83 early on in the trading day.
MANU Stock’s Public Offering
MANU stock is offering up 9.5 million shares of its common stock in a public offering. Following the transaction, the Glazer Trust will hold a combined 69% stake in the company, down from roughly 75%. This marks the second sale made by the Glazer family in 2021 year. March 2021 saw Avram Glazer sell a USD$95 million stakes in the company. Shares went up and down with the hope and then falling through of a deal for Manchester United to be added to a Super league.
Ongoing Global Pandemic
The company continues to be impacted by the ongoing pandemic and the need for measures to prevent the proliferation of the disease. This particularly affected the company’s Matchday and Commercial operations. The Old Trafford Stadium, Museum, and Stadium Tour operations stayed closed to visitors throughout the financial year until some time into the fourth quarter of fiscal 2021. Old Trafford Stadium welcomed back 10,000 fans with a variety of safety measures and protocols in place, including reduced fan capacity.
Covid-19 Related Restrictions
The commencement of the 2020/2021 Premier league fixtures was deferred to 19th September 2020 on account of the delayed completion of the previous season. Matches for the 2020/2021 period were played over the course of a more condensed period, with most of the current season shortfall taking place in the third and fourth quarters. Fiscal 2021 saw 33 home matches across all competitions being played behind closed doors. This included one home Premier League fixture, which was conducted with a significantly reduced fan capacity.
MANU Stock Adapts to Pandemic
The first team’s pre-season tour had to be cancelled because of Covid-19 related travel restrictions. Having been scheduled for early fiscal 2021, this resulted in sponsorship revenue being adversely impacted by variations related to the global pandemic. Revenues were also affected by the closure of Old Trafford Megastore for parts of the year because of government mandated restrictions.
Future Outlook for MANU Stock
The company reported a strong quarter despite the continued effect of the global coronavirus pandemic. The strength of MANU stock’s financial reports for the fourth quarter of fiscal 2021 reflect the company’s economic persistence. Current and potential investors are hopeful that management will be able to leverage the resources at its disposal to usher in unprecedented growth.