Manchester United worth $1billion less than when Louis van Gaal took over as manager
Manchester United has suffered a spectacular financial decline in the last one year. It's been revealed that over $1billion has been wiped off the club's share price value from July 2014 to March 2016.
Dutch coach Louis van Gaal took over management reins at the club in the summer of 2014, after leading Holland to third place at the World Cup. Since he joined Man U, the club's share price has dropped by $6.25. It went from $19.58 to $13.33, on the close of the New York Stock Exchange on March 23 2016. Over the same period, the US stock market has risen by 3 percent.
"Football clubs typically don’t present a particularly attractive investment proposition because their revenues are lumpy, and their employees are rather expensive," said stock market analyst Laith Khalaf.
"Mistakes on the pitch can be costly for shareholders too – in 2015 Manchester United’s broadcast revenues dropped by £30 million as it failed to qualify for the Champions League in that season. So far this year things seem to be picking up with a bounce in revenues, but if the club fails to qualify for the Champions League this season, next year could be a fallow one for investors."
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