Something odd happened to Manchester United in the early stages of the season.
Despite an uninspiring victory over Leicester City on the opening night of the season and back to back defeats to Brighton & Hove Albion and Tottenham Hotspurs, the club’s share price was rising considerably.
Indeed, from mid August to the end of the month – days before a 2-0 win over Burnley – the club’s shares listed on the New York Stock Exchange, leapt in value by around a fifth from $22.10 to more than $27.70.
This was a record share price for club since its listing on the exchange in 2012, likely aided by a flurry of newly announced commercial partnerships, including whisky makers Chivas and Indian finance group ICICI Bank.
The club had also secured a lucrative sleeve sponsorship from Kohler during the summer, these factors helping push the club’s market capitalisation – the total value of the club’s outstanding shares – to around US$4billion.
From the beginning of the year, the price of the club’s shares had risen by around a third.
However, they’re since to reach those heady heights.
Towards the end of November, the share price suffered its biggest fall in over a year, with more than £300million wiped off the club’s value overnight.
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While a volatile market, which caused a decline in similar stocks, was cited as the cause, the club’s mediocre performances on the pitch since September, including 3-1 losses to West Ham and Manchester City, may have spooked investors.
The share price would decline further, following the club’s shellacking at Anfield on 16 December, before the club decided enough was enough. It sat at $17.30 following the defeat, a huge decline, of around $10 per share, since late August.
Shares climbed by 6% following the sacking of Jose Mourinho on 18 December, and have since risen around another 8% thanks, in part, to the club’s success under its new permanent manager, Ole Gunnar Solskjær.
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At its peak, the club’s share price was above $21, thanks to a run of six straight Premier League wins under the Norwegian, during which the club scored 19 times.
As the market opened today, Manchester United were trading at $19.60 a share; Solskjær’s ability to steer the club past Barcelona next month coupled with the club achieving a top four position should see it sail upwards.
A marquee signing during the summer may also act as a lightning rod to draw in new investors.
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