Man United’s Best Week Ever Powers Sports Index Higher in November

Shares of the Red Devils rallied from $13.03 on Nov. 21 to close at $22.14 Wednesday after an announcement that the Glazers, who control 96% of the voting power of the business, were open to strategic alternatives for the club, including a sale. The price surge is easily the best stretch for Manchester United stock in its 10-year history as a public company. The next-best period was a 51% rally over three months in late 2012, the year late family patriarch Malcolm Glazer took the club public on the New York Stock Exchange.

The recent rally ballooned the club’s market capitalization from $2.16 billion to $3.7 billion, which beats the $3.16 billion price tag put on rival Premier League club Chelsea in its sale earlier this year.

“We continue to believe that MANU’s fundamentals justify a premium to clubs sold earlier this year,” Jefferies equity analyst Randal Konik wrote in a research note by the brokerage last week. “Old Trafford is a much bigger stadium [compared to Chelsea], MANU has global reach over Chelsea, MANU has over 1B followers and Chelsea has only a fraction of that, and finally MANU generates more revenue.”

The second straight month of gains for the sports stock index hasn’t done much to unwind a bearish 2022 for stocks. The JohnWallStreet index is down 27% on the year, compared to a 14% retreat for the S&P 500. The benchmark sports index was constituted at 1,000 to start August 2020 and peaked at 1,763 in November 2021. The sports index is rebalanced quarterly and equal weighted, meaning each stock begins each quarter as 2.5% of the index.