Shares in English football team Manchester United (MANU) rose 4% today helped by a new marketing deal aimed at giving European competition a touch of Olympics razzmatazz.
New Marketing Deal
UEFA, European football’s governing body, has awarded U.S. agency Relevent Sports, founded by Miami Dolphins owner Stephen Ross, the rights to market its showpiece Champions League tournament around the world. This builds on an existing agreement with Relevent to market the tournament, which brings together the continent’s top teams such as Liverpool, Real Madrid, Inter Milan and Bayern Munich, in the U.S.
The aim of the expanded deal, which covers the period between 2027 and 2033, is to lure new fans with “Olympic and Super Bowl type” promotion and marketing events particularly around the final.
The deal also encompasses UEFA’s other European competitions – the Europa League and the Conference League. Manchester United has won the Champions League, or the European Cup as it was once known, three times but this year is taking part in the Europa League. Unless it wins that competition, it is unlikely that it will be playing in European competition next season.
Competition Continues to Grow
However, unlike Manchester United, the Champions League continues to go from strength to strength, attracting an average live audience of 145 million for the 2024 final between Real Madrid and German team Borussia Dortmund.
Warner Bros. Discovery’s (WBD) TNT Sports has the bulk of the live matches and highlights in the U.K., paying around £305 million per year. Amazon Prime (AMZN) also has a broadcast deal worth £1.5 billion.
In the U.S., CBS, part of Paramount Global (PARAA), shows the competition with the rights worth around $250 million a season.
Is MANU a Good Stock to Buy Now?
On TipRanks MANU has a Moderate Buy consensus based on 2 Buy ratings. Its highest price target is $26. MANU stock’s consensus price target is $23.88 implying an 73.80% upside.
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