United shares sink

Shares in Manchester United fell 4% today after the club revealed that chief executive Peter Kenyon was leaving to join Chelsea.

Shares in the Barclaycard Premiership champions dropped 8p to 170p as investors reacted with dismay to the surprise announcement.

Kenyon, who is moving to Chelsea as part of Russian billionaire Roman Abramovich’s rebuilding of the club, will be replaced immediately by Manchester United’s managing director David Gill.

City analysts said Kenyon, who oversaw United’s transformation into a global brand, would be a loss to Old Trafford.

The club sealed their ground-breaking £303m (€431m), 13-year deal with kit manufacturer Nike under his leadership. They also signed a £30m (€42m) sponsorship agreement with Vodafone in 2000.

In April this year, United announced sharply improved turnover and operating profits, up by 13% and 32% respectively.

But one City expert played down the fall in the share price, saying it was “just a reaction” to the surprising news.

Recommending investors to buy the shares, Wise Speke analyst David Pope said United would be left in “very capable hands”.

Gill and finance director Nick Humby have significant experience and little would change, Pope said.

He added: “There isn’t anything that won’t get done.”

Although United released a statement announcing the changes last night, as a publicly limited company they are obliged to make an official announcement to the City.

Shares in United reached a peak of more than 400p in 2000, but sank to less than 100p before staging a revival this year.