Manchester United Plc (NYSE:MANU) share price had something of a Brazilian samba in its step, rising seemingly on fresh speculation as traders punt on the future of the English Premier League club.
Jumping US$2.96 or 14.45% to trade at US$23.44 the New York listed shares were valuing the football club at US$3.8 billion at Monday’s close.
“Silly season” is what the latter part of soccer’s transfer window is commonly called, as a fever-pitch of speculation and rumour builds ahead of the September 1 deadline for deals between clubs.
In these days of the window, much of the public conversation is steered by a clattering of media briefings from club executives and player agents alike.
It is against this backdrop that the latest Manchester United share price action comes.
Such as it is, the latest stimulation seemingly emanates from a series of reports that Manchester United is in for mercurial Brazilian striker Neymar – the high-priced and well-paid ‘galactico’ currently contracted to Paris Saint Germain.
PSG, the French champions owned by Qatari sovereign wealth, is heading for the exit door in Paris according to reports, with Qatar-suitored Manchester United among the few names linked as potential destinations.
Given that Manchester United’s reported £150 million transfer budget would appear well spent at this stage with the signing of Mason Mount, Andre Onana, and Rasmus Højlund (for a reported £55mln, £45mln, and £65mln respectively), has led some to leap to some assumptions.
Could the Neymar reports suggest the financial logjam is about for break for Manchester United as a new benefactor finally seals a takeover?
Are the Qatari links between Paris and Manchester United’s supposed ‘preferred bidder’ Sheikh Jassim bin Hamad Al Thani significant or coincidental?
Or, maybe, Neymar’s agent is shopping the striker around Europe and stock-speculating Manchester United followers are quick to put two-and-two together.
Still, there could be other discrete catalysts at play.
Reports at the weekend claimed that the Qatari consortium had ‘won’ the bidding and final due diligence checks were now taking place, whilst the majority stakeholding Glazer family are expecting to complete a deal by November.
Much earlier in Manchester United’s potential sale process the reported goal was to announce a transaction before the start of the new Premier League season.
That symbolic deadline arrives on 14 August for United, with the kick-off Monday Night Football game versus Wolverhampton Wanderers. After that, the next notional deadline, in terms of United’s football operations would be the transfer deadline-day on September 1.
It may be late in the proceedings for a potential new owner to make a splash in the transfer window, given the likely bureaucratic heft accompanying a deal – especially if it is a full takeover by the Qatar based consortium.
Such a transaction will need to clear all the customary stock exchange related box-ticking, also as a culturally significant asset there could be some political tire-kicking too, and, on a regulatory basis, some third parties have called for UEFA to scrutinise a transaction.
Any and all examples would potentially add months to the timeline for completing a deal.
Funds could potentially be injected into the club more quickly, however, if the buyer is able to provide bridging credit facilities.