Top Man United Shareholder Continues to Decrease Ownership Stake

Manchester United has been enduring a challenging season both on and off the field. The team’s stock has fallen by 22% in the past six months and is currently below its IPO price from 2012. British investment firm Lindsell Train recently sold a portion of its holdings in the team, shedding more than 700,000 shares, which accounts for 13% of its stake. As a result, the firm now owns 9.3% of the Class A shares traded on the New York Stock Exchange.

Lindsell Train initially invested in Manchester United back in 2017 and held a peak of 11.6 million shares in 2021, making it the largest institutional shareholder at that time. However, the firm began reducing its stake in early 2024, when Jim Ratcliffe purchased 25% of the club for $33 per share. Since then, Lindsell Train has steadily decreased its ownership, selling 20% of its shares in October and an additional 9.3% by the end of 2024.

Ariel Investments, a Chicago-based firm, is now the largest institutional shareholder in Manchester United, holding 8.4 million shares at the end of 2024. The club’s performance on the field has been disappointing, currently sitting in 13th place in the Premier League standings with only eight games left in the season. Last season’s eighth-place finish marked the team’s worst result since the launch of the Premier League in 1992.

In response to financial challenges, Manchester United announced layoffs of 150 to 200 employees, building on the 250 employees let go the previous year. Additionally, the club unveiled plans to construct a 100,000-seat stadium expected to cost £2 billion. The Glazer family purchased Manchester United in 2005 and listed shares on the NYSE in 2012. The IPO raised approximately $230 million at $14 per share, and despite some investors capitalizing on a stock bump in 2022, the overall performance of the stock has been lackluster.

Shares in Manchester United closed at $13.01 on Thursday. The team’s struggles on the field and financial challenges have led to difficult decisions, such as layoffs and ambitious stadium construction plans. Despite these measures, the stock price continues to face pressure and remains below its IPO level. Investors will be watching closely to see how the team navigates through these challenges and whether it can regain its footing both on and off the field.