The U.S.-listed shares of Manchester United PLC have taken a severe hit following rumors that the iconic U.K.-based football club may soon be taken off the market.
The stock (MANU, -18.30% UK:MNL) plummeted 18.5% in midday trading, putting it on course to endure its largest one-day selloff since going public in August 2012. The previous record drop was 13.8% on March 12, 2020.
The American Glazer family, which gained control of Manchester United in 2005, divulged in November 2022 that they were exploring a sale of the club. Over the Labor Day weekend, a report by Mail Online claims that the Glazers are now set to take the club off the market.
This news is likely to provoke anger among fans of the club, who have been protesting against the Glazers' ownership due to the team's recent underperformance. Manchester United has only managed to secure one major trophy in the last six seasons.
It was widely believed that a sale of the club was imminent, especially after reports emerged in early-June that Qatar's Sheikh Jassim had submitted a fifth and final bid to acquire 100% of the club. However, the bid reportedly fell short of the Glazers' expectations at no more than $7.5 billion.
Also read: Manchester United shares jump on report Qatar’s Sheikh Jassim to be named preferred bidder
Since satisfactory offers for the club have not been received, the Glazers have decided to withdraw Manchester United from the market. They hope to attract better offers in the future, banking on improved market conditions—a strategy outlined by a source closely tied to the family, according to Mail Online.
The Glazers are reportedly holding out for an astounding £10 billion ($12.6 billion), as stated in the Mail Online report.
While Manchester United's stock has gained 6.9% in the past three months, it has experienced a significant decline of 17.3% year to date. In comparison, the S&P 500 index (SPX) has seen a 5.5% increase over the past three months and has surged by 17.4% this year.