Despite Moyes fiasco, Manchester United's shares rises

Bloomberg reported Manchester United Plc shares climbed $1.06, or 6 percent, to $18.78 at the close in New York, after a 2-0 loss to Everton, two days ago.

Last year, during the Champion’s League, Manchester United bagged 35.6 million euros in prize money and this tragic defeat to Everton, has wrecked Manchester United’s chance of qualifying for the upcoming season of Champion’s League – the first major loss in 19 years.

David Moyes, a 50-year-old Scot was hired last May, on a six-year contract. Moyes lost his manager’s seat due to this defeat and other under performed matches.

With four of 38 games left, defending champion United is seventh in the Premier League. It has racked up 11 defeats -- its most since the championship began in 1992.

Moyes replaced Alex Ferguson, the team’s most successful coach who won 38 trophies in 26 years and it is decided that midfielder Ryan Giggs, who has played a record 962 times for the club, will be the club’s interim manager.

During Moyes’s short-lived glory of managing United, he signed a few players like Chelsea play-maker, Juan Mata with club record fee of 37.1 million pounds ($62.4 million) during the mid-season transfer window and the following month, Wayne Rooney’s contract got extended to 2019.

Moyes’s first major signing on the final day of the pre-season transfer period was Everton’s Marouane Fellaini. This Belgian midfielder has only played 20 times for United.

Edward "Ed" Woodward, who is currently responsible for the overall operation of Manchester United FC, this executive vice-chairman of the club told Bloomberg that United plans more transfer spending after this season.

According to Bloomberg, Edward Freedman, who headed United’s merchandising unit in the 1990's quoted as saying, “The whole handover was chaotic”

Freedman added, United’s droopy performance on the field will shrink the prospect sponsorship agreements and grind down the merchandising sales even if the team’s earnings have held up so far. A 13-year jersey deal with Oregon-based Nike Inc. (NKE), worth 303 million pounds, expires next year.

“They’re not going to get the same sponsors or size of sponsors,” Freedman said. “They’re living on former glories at the moment.”

The club’s American owner, the Galzer family held an initial public offering in August 2012, raising $233 million by selling 10 percent of the 136-year-old club at $14 per share. The family also owns the Tampa Bay Buccaneers of the National Football League.