Man Utd Share Price
Manchester United shares have fallen over 5% since Sir Alex Ferguson announced his retirement. They are still trading on over 25x next year's earnings, which some would say is justified given the earnings visibility. Current year EV/EBITDA is over 20x, which even the bulls would admit is harder to justify, given that the balance sheet debt has been reduced by massive levels of sponsor payments in advance in addition to the natural season ticket "float".
This is a much higher quality business than an international investor who was not a football fan might expect. But the outcome of the application of Financial Fair Play rules will be critical to the earnings resilience of the business. With Middle Eastern money continuing to fund some clubs in a more than generous manner, some experts we know remain cynical.