Football is a pretty emotional game – and everyone has their own heartfelt opinions about which teams are at the top of the pile. This is certainly true for the Premier League, where ardent Manchester United fans passionately support their side. But if you’re deciding to take a sideways step from fan to investor, there’s a lot more to think about than just team loyalties.
In the case of Manchester United, it’s almost irrelevant whether you’re a fan or not if you’re planning to invest: instead, it’s all about the business case for parting with your cash and taking a stake. This article will share some background to Man U’s investment past, some potential future trajectories – and leave a warning on how not to go about it.
Man U’s recent investment history
The club is currently owned in part by the Glazer family, who – according to press reports at least – want to channel more investment into the team and also into the world-famous Old Trafford ground. Evidence of this, however, has not yet manifested itself – so it’s something of an uncertainty at the moment. In terms of investing, you also have to consider the position of the Glazers themselves, as time moves on. They are not popular with a large section of the Man United fanbase and face heavy pressure from some quarters to resign.
This could see them decide to step down as part owners and this would create uncertainty around Manchester United shares. If there is one thing that the global financial markets do not like, it is uncertainty! Of course, if new owners were found, who were welcomed with open arms and did bring new investment into the club, this could have a positive impact on the club’s share price. As a result, some investors may see the situation at Utd as an opportunity, although others may consider it too risky for now.
What might the ‘Fan Share’ scheme offer to investors?
One of the most interesting aspects of the Glazer family’s plans is their intention to look into setting up what is known as a Fan Share scheme. It is thought that this would create a type of share that was specifically for fans and nobody else. This would naturally give fans a chance to invest in the club and be involved in decision making. When thinking of investing in Man United shares, you may want to wait for this option to become available. By doing this, you will then be able to choose which type of share you prefer to buy and not miss out on the Fan Share scheme, if it appeals to you.
Putting aside your emotions
As mentioned above, football can stoke the passion of even the most reserved of people. Look at how strong the feeling was when the club won the Champions League in 1999, with the last kick of the game! Or how charged-up fans got after seeing Roy Keane confront Patrick Viera in the Highbury tunnel! If you’re thinking of buying shares in Manchester United just because you’re a fan, it’s advisable to take a step back and think carefully about whether or not that’s the right move, though.
Belief in a team isn’t enough to turn a profit – and in any case, there’s not necessarily a direct and unbreakable link between a team’s performance on the pitch and its likelihood of turning high profits, although it’s certainly the case that the most successful teams become the most famous and the most highly valued.
Instead, you should treat an investment in Manchester United as you would any other business or commercial decision – and enlisting the help of a British trade platform that offers technical analysis tools and customer support is a good move. That way, you’ll have some guidance when it comes to performing normal due diligence tasks and balance sheet checking, and you’ll also have someone on your side to keep your emotions and feelings in check.
Investing in Manchester United shares a viable option
In short, Manchester United shares are not necessarily a bad shout, provided you keep in mind the overall context of the club’s performance and finances. It is also wise to keep an open mind around adjusting your investment strategy when required. You should also remember to never make trading decisions based on emotion alone – not even where football is involved! This is always a bad move and can see you risking money based on hope or how you feel, rather than hard facts. If you can do all this and use a reputable trading platform to help, you will be on the right road as an investor.