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$55m Ferguson Fallout

posted 9 May 2013, 07:08 by Mpelembe Admin   [ updated 9 May 2013, 07:08 ]

 

Reuters Business Video Report - 55 million dollars is today's daily digit - the amount wiped off Manchester United's share price after manager Alex Ferguson's announced his retirement.

They closed down 1.8 percent but are still 27 percent higher than where they started after last year's IPO.

Ferguson's been in charge at the club for 26 years, winning 38 trophies.

His decision to step down prompted concerns over who'd replace him.

Current Everton manager David Moyes is stand-out favourite - his appointment is expected by the end of the week.

But Josh Raymond from City Index says investors would prefer Real Madrid boss Jose Mourinho.

JOSH RAYMOND, CHIEF MARKET STRATEGIST, CITY INDEX,

"I think the shareholders would actually probably prefer Jose Mourinho, just because of his track record. He's been at big clubs: Real Madrid, Inter Milan, Chelsea, and he's one major trophies there. So from a consistency perspective, Mourinho, him coming in at Old Trafford, could potentially keep the long run of trophy cabinet being full at Old Trafford compared to Moyes, who actually hasn't won a major trophy in his entire career so far."

The club has plenty of options to recoup any losses.

Striker Wayne Rooney is reportedly keen to move on - his sale might not raise 55 million but it would contribute a considerable chunk to it.

And despite the share price fall, the club's still worth more than 3 billion dollars.



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