AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- UBS Upgrades Rating: Manchester United receives a ‘Buy’ rating from UBS with confidence in its revenue strength and competitive turnaround.
- Champions League Target: UBS forecasts potential Champions League qualification, driving revenue growth to £800 million.
- Stadium Redevelopment Plans: A full redevelopment of Old Trafford could unlock an additional £200 million in incremental revenue.
Manchester United Plc (NYSE:MANU) has been upgraded to a ‘Buy’ rating by UBS analysts, citing strong confidence in the football club’s ability to reclaim its position among the elite of English and European football. The investment bank emphasized the club’s superior revenue base and upcoming management strategies to drive sporting and financial performance.
UBS pointed to Manchester United’s robust financial foundation as a critical advantage over rivals, enabling the club to invest more aggressively in talent acquisition. This investment is seen as a pathway to a return to the prestigious and lucrative UEFA Champions League, a development that UBS predicts could propel the club’s revenues to around £800 million annually.
“The new management and its focus on cost management should support investment to improve sporting performance as well as a return to net profitability,” UBS stated.
The recent appointment of Ruben Amorim as head coach was identified as a key step in Manchester United’s turnaround. Amorim replaced Erik Ten Hag in November after an underwhelming start to the season. UBS analysts noted that the managerial shift represents a “turning point for change,” though it may take time for significant improvements to materialize.
Champions League Participation: A Key Catalyst
Manchester United’s return to the Champions League is seen as the most significant driver of future growth. UBS predicts that by the 2028 season, the club could secure a spot in the competition, unlocking lucrative revenues from broadcast rights, matchday income, and sponsorship deals.
“With a superior revenue base than most peers and thus an ability to spend more on talent, we assume performance will turn around, leading to Champions League participation,” UBS added.
Old Trafford Redevelopment: A Long-term Boost
UBS also highlighted Manchester United’s plans for a comprehensive redevelopment of Old Trafford, its iconic home stadium. Analysts estimate that a fully modernized stadium could contribute an additional £200 million annually in incremental revenues. Enhancements to matchday experiences, expanded seating capacity, and improved facilities are expected to solidify the club’s financial strength.
The redevelopment aligns with longer-term strategies to diversify revenue streams, which include leveraging the club’s global fanbase and expanding commercial partnerships.
Market Reaction
UBS’s optimistic outlook was accompanied by a share price target of $23, reflecting confidence in Manchester United’s upward trajectory. Shares rose 1.6% to $17.96 in early New York trading following the announcement.
Manchester United’s path to recovery remains contingent on improved sporting performance and execution of its redevelopment plans. However, UBS’s assessment highlights the club’s potential to combine strong financial resources with renewed competitive success.
As the club moves forward under new leadership and strategic initiatives, Manchester United appears poised to reclaim its stature on the domestic and European football stages.
