Equity valuation of Manchester United plc

• Autor(a) principal: Mascarenhas, João Gonçalo dos Reis Afonso e Castro
• Data de Publicação: 2023
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/30362
• topic: Manchester United; Avaliação de empresas -- Business valuation; Football; DCF Discounted Cash Flow --; Avaliação por múltiplos Valuation using multiples; Futebol

Manchester United is a football club based of Manchester and has been at the forefront of football since the early nineties. It competes in the English Premier League, the most competitive and lucrative football league. The club is owned by the Glazer family, known by the supporters as “The Glazers”, who own 70% of the shares. It has been listed in stock exchanges since 2014 and has been paying a stable annual dividend of 0.18$ for the last 5 years, with a yield of around 1%. It has been considered by Deloitte, in their annual football report, as the fourth largest football club in the world. They had a social media following, as of 2020, of 141 million people, an average league attendance of 74 thousand people a game and have generated about 309 million pounds in commercial revenue in 2022. The purpose of this thesis was to issue a buy or sell recommendation of the shares, as of 28th of April 2023. To do so, the method applied was the Discounted Cash Flows Multiples. An extra valuation approach was also implemented, and although it was not a conventional one, the goal was to try and surpass some of the typical problems that are faced when trying to value sports clubs, by innovating in the approach taken, as well as to give some confirmation to our DCF model’s results. Our final recommendation is that investors should sell the shares of Manchester United.