Manchester United (NYSE:MANU) stock jumped nearly 15% yesterday and is climbing another 10% this morning. A British professional soccer team, Manchester rallied after it parted ways with its star player and began seeking “strategic alternatives.” Specifically, MANU is looking either to sell itself or obtain a significant investment from another entity, the United Kingdom’s Sky News stated. Manchester subsequently confirmed the report.
The Star’s Interview and Departure
Cristiano Ronaldo told Piers Morgan that Manchester United had made “zero progress” in nine years. He added that he “doesn’t respect” the club’s manager, Erik ten Hag.
Ronaldo’s contract was slated to expire in June, but Manchester United and the 37-year-old player both decided to terminate the deal immediately. During his tenure with Manchester United, Ronaldo scored “145 goals in 346 appearances,” Manchester United reported.
Separately, Manchester’s board “has authorized a thorough evaluation of strategic alternatives,” MANU’s co-Executive Chairmen, Avram and Joel Glazer, said in a statement yesterday. The company reported that it could sell itself completely, sell a partial stake, or obtain investments from outside entities. Manchester United noted that it had hired Rothschild & Co., a financial advisory firm, to assist with the search for strategic alternatives
Sky News had previously reported on Tuesday that the club could be acquired, sell a “partial” stake in itself, or recruit a “strategic partner.”
Background on Manchester United
According to Barron’s, Manchester United is “the most successful club in English Premier League history.” The U.S.-based Glazer family has owned the team for about 17 years.
Fans have been dissatisfied with the Glazers’ tenure, as the team has not won a championship in five years and has not been the winner of its league in nearly a decade. It’s currently in fifth place in its league.
Nevertheless, Bloomberg estimates that MANU could be valued at roughly $6 billion in a deal. The market capitalization of MANU stock as of yesterday’s close was $2.4 billion.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.