Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Ben Chu: The market shoots wide on Sir Alex

Ben Chu
Friday 10 May 2013 01:13 BST
Comments

Outlook Since Manchester United announced on Wednesday that the long reign of Sir Alex Ferguson will come to a close at the end of the season the share price of the 10 per cent of Manchester United that it floated on the New York Stock Exchange has declined by around 2.5 per cent. That means investors' estimate of the "Fergie premium" on the $18.77 share price was also 2.5 per cent, or $0.47.

Impose that over the $3bn market value of the club, and the implication is that Sir Alex – the man who has virtually single-handedly turned United into one of the world's most successful clubs – is worth around $75m (£50m).

If you wanted disproof of the Efficient Markets Hypothesis (the notion that investors collectively always price things correctly) look no further.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in