Manchester United plc (MANU) | Investment Case

1. Company Snapshot

1.a. Company Description

Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom.The company operates Manchester United Football Club, a professional football club.It develops marketing and sponsorship relationships with international and regional companies to leverage its brand.

The company also markets and sells sports apparel, training and leisure wear, and other clothing featuring the Manchester United brand; and sells other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company's partners' wholesale distribution channels.In addition, it distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide.Further, the company offers a direct to consumer subscription mobile application; and operates Old Trafford, a sports venue with 74,239 seats, as well as invests in properties.

Manchester United plc was founded in 1878 and is based in Manchester, the United Kingdom.

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1.b. Last Insights on MANU

Manchester United's recent performance was impacted by a decline in commercial revenue, primarily due to a 9.3% decrease in sponsorships. The company's Q1 FY26 results showed a swing to profitability, driven by cost discipline, with revenue at £140.3 million. The firing of coach Ruben Amorim and the hacking of captain Bruno Fernandes' social media account have added uncertainty. Analysts are evaluating the company's valuation, profitability, and institutional ownership. The company's transformation efforts and on-field performance are crucial in driving future growth.

1.c. Company Highlights

Last Price	17.44
Change Percentage	1.51%
Open	17.27
Previous Close	17.18
Market Cap ( Millions)	3007
Volume	248984
Year High	19.65
Year Low	12.05
M A 50	16.49
M A 200	16.39

FCF Yield	-8.72%
Dividend Yield	0.00%
ROE	-22.37%
Debt / Equity	406.61%
Net Debt / EBIDTA	292.26%
Price To Book	11.82
Price Earnings Ratio	-50.86
Price To FCF	-11.47
Price To sales	3.32
EV / EBITDA	12.84

2. Transcript Summary

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3. NewsRoom

Manchester United (NYSE:MANU) Shares Cross Above 200 Day Moving Average – Should You Sell?

Feb -05

Source: defenseworld.net

Why Two 'Idiots'—Elon Musk and the CEO of Ryanair—Are Going At It

Jan -27

Source: investopedia.com

Reviewing Travel + Leisure (NYSE:TNL) and Manchester United (NYSE:MANU)

Jan -15

Source: defenseworld.net

Manchester United captain's X account hacked with post criticising co-owners

Jan -12

Source: news.sky.com

Manchester United's stock climbs after football club fires coach Ruben Amorim

Jan -05

Source: marketwatch.com

Manchester United sacks head coach Ruben Amorim

Jan -05

Source: cnbc.com

Critical Comparison: Manchester United (NYSE:MANU) versus TIX (OTCMKTS:TIXC)

Dec -16

Source: defenseworld.net

Manchester United: An Institution Steeped In Legacy, A Business Stuck Mid-Table

Dec -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.70%)

6. Segments

Operation of Professional Football Clubs

Expected Growth: 0.8%

The global football industry is experiencing steady growth, driven by increasing broadcast rights and sponsorship deals. Manchester United's strong brand and global reach position it for slightly higher growth than the global average of 0.7%. The team's on-field performance and ability to attract new sponsors will be key drivers of growth.

7. Detailed Products

Matchday Tickets

Tickets to watch Manchester United play at Old Trafford stadium

Merchandise

Official Manchester United apparel, souvenirs, and gifts

Hospitality Packages

Luxury experiences including fine dining, VIP access, and behind-the-scenes tours

Sponsorship and Partnerships

Branding and advertising opportunities with Manchester United

Media and Broadcasting Rights

Television, radio, and digital broadcasting rights for Manchester United matches and content

Stadium Tours

Guided tours of Old Trafford stadium, including the dressing rooms, dugouts, and museum

Football Schools and Coaching

Youth football coaching and development programs

Conference and Events

Venue hire and event management services at Old Trafford stadium

8. Manchester United plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Manchester United plc has a strong brand presence and a loyal fan base, making it difficult for substitutes to emerge and gain traction.

Bargaining Power Of Customers

While Manchester United plc has a large and dedicated fan base, customers have some bargaining power due to the availability of alternative forms of entertainment and the ability to switch allegiance to other football clubs.

Bargaining Power Of Suppliers

Manchester United plc has a strong financial position and is not heavily reliant on a small number of suppliers, reducing the bargaining power of suppliers.

Threat Of New Entrants

The English Premier League has a high barrier to entry, with significant financial and regulatory hurdles to overcome, making it difficult for new entrants to join the league and compete with Manchester United plc.

Intensity Of Rivalry

The English Premier League is a highly competitive market with several strong teams, including Manchester City, Liverpool, and Chelsea, which creates a high level of rivalry and competition for Manchester United plc.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	85.68%
Debt Cost	7.39%
Equity Weight	14.32%
Equity Cost	7.39%
WACC	7.39%
Leverage	598.53%

11. Quality Control: Manchester United plc passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Bolloré

A-Score: 5.1/10

Value: 10.0

Growth: 2.4

Quality: 4.9

Yield: 1.9

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

CTS Eventim

A-Score: 4.5/10

Value: 2.2

Growth: 7.9

Quality: 6.9

Yield: 2.5

Momentum: 3.0

Volatility: 4.3

1-Year Total Return ->

FL Entertainment

A-Score: 3.4/10

Value: 3.6

Growth: 5.1

Quality: 4.3

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

Vivendi

A-Score: 3.0/10

Value: 5.7

Growth: 1.7

Quality: 3.3

Yield: 4.4

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

Anghami

A-Score: 2.8/10

Value: 10.0

Growth: 2.8

Quality: 3.6

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

Manchester United

A-Score: 2.8/10

Value: 5.5

Growth: 3.9

Quality: 2.0

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

35.25%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.39%

Manchester United plc - KYG5784H1065

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MANU

1.c. Company Highlights

Lower Quality

Weak Momentum

More Volatile

Earnings Beats

Lower Yield

Fairly Valued

Lower Growth

Stable Momentum

Revenues Beats

Average Yield

Revenues Miss

Medium Volatility

Average Growth

Earnings Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.70%)

6. Segments

Operation of Professional Football Clubs

Expected Growth: 0.8%

7. Detailed Products

Matchday Tickets

Merchandise

Hospitality Packages

Sponsorship and Partnerships

Media and Broadcasting Rights

Stadium Tours

Football Schools and Coaching

Conference and Events

8. Manchester United plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Manchester United plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.44$

Current Price

17.44$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA