In-Depth Look at Manchester United Stock: Price Surges 29% in One Year Despite Operating Losses

The aftermath of the recent “Red Devils” match saw Manchester United narrowly beat Liverpool 3-2 at Old Trafford last weekend, restoring full confidence and enthusiasm among fans.

As the team’s on-field performance heats up, the market outlook for Manchester United Plc, listed on the New York Stock Exchange (NYSE: MANU) with a valuation in the hundreds of billions of baht, is showing similarly positive signs.

The latest share price stands around 18.00 US dollars, approximately 588 baht per share, with positive returns over various periods as follows:

• Over the past week, the price increased by 4.29%.
• Over the past three months, it rose by 7.30%.
• Over the past year, it gained 29.20%.
• Over the past five years, it increased by 9.03%.

However, the stock remains sensitive to on-field performance, so despite overall positive returns, the price fluctuates significantly depending on investors’ expectations for the team’s future.

On-field performance directly correlates with financial revenue.

Manchester United’s business model divides its main revenue streams into three parts:

• Commercial revenue accounts for 50% of total income, generated from global sponsorships, merchandise sales, and licensing.
• Broadcasting revenue makes up 26%, coming from shared rights fees for Premier League, UEFA competitions, and the MUTV channel.
• Matchday revenue comprises 24%, from ticket sales and various services at Old Trafford stadium.

The key point is these revenues are directly tied to the team’s performance. For example, if the team misses out on major competitions like the UEFA Champions League, broadcast and matchday revenues can instantly drop by hundreds of millions of pounds.

This explains why Manchester United’s stock is less affected by global economic conditions but swings sharply with match results, reacting almost breathlessly to outcomes.

Looking back at the past five years’ financial results:

• In 2025, revenue was £666.5 million with a net loss of £33 million.
• In 2024, revenue was £661.8 million with a net loss of £113 million.
• In 2023, revenue was £648.4 million with a net loss of £35 million.
• In 2022, revenue was £583.2 million with a net loss of £154 million.
• In 2021, revenue was £494.1 million with a net loss of £124 million.

In 2025, Manchester United achieved record-high revenues, boosted especially by continuous sponsorship deals. However, the company still faced net losses and a consistently negative earnings per share (EPS).

The main reason remains the massive wage burden for top players, combined with expenses for staff, coaches, and administrative costs, meaning that despite high revenues, profits have yet to materialize.

Notably, the financial statements recorded a "special item" worth £36.6 million, partly representing £16.9 million in severance pay related to the dismissal of former manager Erik Ten Hag and his coaching staff.

Additionally, total liabilities amounted to £637 million as of 30 June 2025, with interest and financial fees last year totaling £21.2 million, further hindering the club’s ability to return to profitability.

Looking ahead, close attention is on the serious implementation of the Transformation Plan, focusing on reducing organizational costs, restructuring staff, and tightly controlling expenses to maintain a lean organizational size.

Certainly, investing involves risks. Despite the strong brand, Manchester United shares have distinct factors to consider. Currently, the company has no dividend policy and its profitability remains to be proven over the long term.

In simple terms, this is not a safe or defensive stock to buy and hold for easy dividends. Rather, it is a stock driven by story and sentiment, with investors essentially "betting on the football team’s future" together.

Sources: ir.manutd.com, investing.com, tradingview.com

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