Revealed: The effect Newcastle’s takeover had on Manchester United’s share prices
A fascinating insight into the effect which the big-money takeover at Newcastle United has had on the share price at Manchester United has been forthcoming this weekend.
All change at St. James’
The news which shook the foundation of English football to its very core was of course forthcoming this past Thursday.
This came in the form of Mike Ashley’s tumultuous 14-year stint at the forefront of Newcastle United being brought to a definitive close.
On the back of a negotiation period spanning 18 months, the one final stumbling block – in the form of Saudi Arabia’s ban on all content stemming from broadcaster beIN Sports – was finally overcome, opening the door for a Saudi consortium led by Yasir Al-Rumayyan to kickstart a new era on Tyneside.
Newcastle, in turn, made word of the change in ownership at the club official on October 7th, in a deal worth a rumoured £300 million.
🤝 An investment group led by the Public Investment Fund, and also comprising PCP Capital Partners and RB Sports & Media, has completed the acquisition of 100% of Newcastle United Limited and Newcastle United Football Club Limited from St. James Holdings Limited.
— Newcastle United FC (@NUFC) October 7, 2021
United take a hit
The momentous changing of hands at St. James’ Park has since resulted in understandable jubilation across Newcastle’s loyal fanbase, with the Magpies faithful having long been crying out for an owner fit to reestablish a club of such unquestionable magnitude amongst the giants of Premier League football.
Elsewhere, throughout the English top-flight’s heavyweights, on the other hand, panic has quickly begun to set in.
Newcastle’s predicted upcoming transfer splurge could, in the not-so-distant future, see the Geordie outfit challenging not only for European football, but potentially even a Champions League berth.
And, as outlined above, this weekend, an insight into exactly the kind of effect which the Saudi initiative on Tyneside has had, from a financial sense, one of the Premier League’s biggest clubs has been provided.
The outfit in question? Manchester United.
The info comes courtesy of financial expert Kieran Maguire, who has revealed that share prices at Old Trafford dropped by a hefty 2.5% in the immediate aftermath of Newcastle’s takeover.
Put in monetary terms, this equates to roughly $65 million.
As the markets digested the impact of the Newcastle takeover, Manchester United’s share price fell by another 2.5%, knocking another $65m off the value of the company as the realisation that 7 clubs chasing 4 Champions League places is more difficult than 6 into 4 #MUFC #NUFC pic.twitter.com/Qywu4sUDIL
— PriceOfFootball (@KieranMaguire) October 9, 2021
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