Baron Capital, a US investment firm, has acquired 24% of all Manchester United shares available on the New York Stock Exchange. The buying up of a quarter of all shares sold by the Glazer family in 2012 amounts to ownership of just 2.5% of the club.
The Glazer family still retains 90% of the club's shares, but analysts are viewing Baron's move as a long-term investment, rather than any move to gain control at Old Trafford. Coupled with a rumoured kit deal with Nike worth in the hundreds of millions, it explains why United's share price has increased this year, despite their on-field struggles.
Baron Capital remains positive about United's future, according to a statement on the company's website. It reads: "Shares of Manchester United dropped... due to a delay in the signing of a new global merchandise deal with Nike and the team's poor performance on the field. The Nike deal is still expected to be signed, but has been pushed out from this fiscal year. We remain positive on the company's prospects going forward." United's share price closed at $15.84 on Monday - the highest level since November.
H/T: Independent
