Super own goal sees shares fall
MORE than £300million has been wiped off the value of Manchester United and Italian giants Juventus following the dramatic collapse of the rebel European Super League.
Plans for a breakaway league featuring the biggest clubs in England, Spain and Italy were scuppered within two days of them being announced.
The Premier League contingent, plus Atletico Madrid, Inter Milan and AC Milan, withdrew following pressure from fans, politicians, sports governing bodies and even their own players.
Shares in United and Juventus, which are listed on the New York and Milan stock exchanges respectively, climbed on Monday in reaction to the news of the creation of the potentially lucrative Super League.
However, the clubs’ shares have since tumbled, giving up more than their initial gains. It could have been a major earner for Europe’s leading clubs, who were guaranteed places and would not have faced relegation.
Richard Hunter, Interactive Investor’s head of markets, said: “What’s happening is a reversal of the spike we saw the other day. The English clubs that were a part of the ESL are largely owned by Americans who want to move to a closed shop.
“Share prices inflated on Monday, it was the first reaction to Sunday’s news of a Super League and the prospect of them receiving greater income than from the Champions League. But that’s been punctured now.”
United’s shares closed at $17.26 on Monday night but then slumped more than 6 per cent, cutting the club’s market value by £120million to £1.9billion. Italian champions Juventus have seen a bigger fall, down £210million to £1billion. Last night Juventus’s shares closed down more than 14 per cent.
United’s steadied – up 2 per cent – but still down dramatically from Monday.
The ESL comprised United, Juventus, Arsenal, Chelsea, Liverpool, Manchester City, Tottenham, Inter Milan, AC Milan, Atletico Madrid, Barcelona and Real Madrid, with spots for eight other sides.
Financing of the venture, which was supposed to supplant the Champions League, was to be by US bank JPMorgan.