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Manchester United’S Ipo (2012)

Author

Listed:
  • TEODOR DIMA

    (THE BUCHAREST UNIVERSITY OF ECONOMIC STUDIES)

Abstract

A practice quite rarely used in the competition industry, the Initial Public Offering (IPO) of a sporting entity can have as a goal the procurement of financial resources in order to invest in productive assets or to adjust the economic image of the club. The listing on the Stock Exchange in 2012 of one of the most valuable football clubs in the world, Manchester United, was an atypical one within the sporting area, both in terms of the motivation behind it and of the technical considerations. This analysis aims to provide a general perspective on the stock exchange index in this niche area and its relevance, focusing on the details of the English club’s listing and analyzing a set of indicators relevant to the dynamics of its economic evolution and popularity. After more than two years from the club’s listing on the Stock Exchange, the stocks have a value close to the initial one, the stock price following an oscillating trend, marked by a couple of stages of significant growth too. The research emphasizes the opposing effects of certain indicators: the brand value experiences a negative growth, while the income from current activities, especially the one from commercial activities follows a rising trend. So, it is still premature to deem the listing of Manchester United on the Stock Exchange a success or a failure, but the scientific debate is worth continuing.

Suggested Citation

  • Teodor Dima, 2015. "Manchester United’S Ipo (2012)," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 65-71, February.
  • Handle: RePEc:cbu:jrnlec:y:2015:v:1ii:p:65-71
    as

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    File URL: http://www.utgjiu.ro/revista/ec/pdf/2015-01.Volumul%202/10_Dima%20Teodor.pdf
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    References listed on IDEAS

    as
    1. Stefan Késenne, 2014. "The Economic Theory of Professional Team Sports," Books, Edward Elgar Publishing, number 15211.
    2. Michel Aglietta & Wladimir Andreff & Bastien Drut, 2010. "Floating European football clubs in the stock market," EconomiX Working Papers 2010-24, University of Paris Nanterre, EconomiX.
    3. Michel Aglietta & Wladimir Andreff & Bastien Drut, 2008. "Bourse et Football," Revue d'économie politique, Dalloz, vol. 118(2), pages 255-296.
    4. Dirk G. Baur & Conor McKeating, 2011. "Do Football Clubs Benefit from Initial Public Offerings?," International Journal of Sport Finance, Fitness Information Technology, vol. 6(1), pages 40-59, February.
    5. Adrian R. Bell & Chris Brooks & David Matthews & Charles Sutcliffe, 2012. "Over the moon or sick as a parrot? The effects of football results on a club's share price," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3435-3452, September.
    6. Dirk G. Baur and Conor McKeating, 2009. "The Benefits of Financial Markets: A Case Study of European Football Clubs," The Institute for International Integration Studies Discussion Paper Series iiisdp283, IIIS.
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