Manchester United: Built to Last
U.K. soccer team Manchester United (MANU) is the most popular sports team in the world. More fans watch televised soccer matches than any other sporting event. That is why we consider our investment in Manchester United to be an investment in the most popular television program in the world. Twenty five years from now, we believe huge audiences will still be watching this team that has won more championships than any other in its 138-year history.
Manchester United televises 38 of its games a year. On average, 47 million fans watch each of those games! The NFL’s Super Bowl is played once a year. In 2014, it had 115 million viewers. Accordingly, we think Manchester United’s televised games are the equivalent of 16 Super Bowls a year! Because fans like to watch sporting events live with their attendant commercials, not time shifted with commercials eliminated, sports teams are unusually valuable media properties. Manchester United’s sustainable competitive advantage is its brand derived from its storied history and huge fan base. Media and licensing opportunities provide significant growth potential. Its management is investing its cash flow in star players and a new coach of champion teams to win more championships and make its franchise even more valuable. Manchester United’s investment in its business to benefit its fans at the expense of its short-term profits demonstrates the values we think make this business attractive.
From Ron Baron (Trades, Portfolio)’s Q3 2014 Shareholder Letter.
