Celtic share price dips amidst managerial uncertainty
Celtic’s share price has taken a dip, with uncertainty causing squeamishness in the markets.
According to the London Stock Exchange, the current price of a Celtic share is 112.50. That’s mere weeks after the share price was at its highest value in a considerable length of time. Speculation about a British Super League, as well as the early arrival of a new CEO in Dominic McKay, clearly had investors interested.
That honeymoon period seems to be over, however. While projections today indicate an incremental boost in the value, the price of Celtic shares is significantly lower than it was in late April.
Controversy surrounding the club becoming a member of the Premier League, and fan revolt around the UK has made European football a risky market. Manchester United, for example, have seen drops to their own share price [Yahoo Finance]. Clubs around Europe are bearing the brunt of fan unrest, UEFA uncertainty and of course, Covid-19. Even behemoths like Barcelona are undergoing enormous debt anxieties [Bloomberg].
What does share price dip actually mean for Celtic?
It’s important not to panic here. None of this means Celtic are in any danger whatsoever. The market is volatile at the best of times, especially in a results-driven process like football.
The Celtic board won’t be too concerned about this fluctuation, but it’s interesting to see the effects of events happening in real time. When Dominic McKay arrived, it was instrumental in raising the share price. As football finance expert Dr. Rob Wilson told 67 Hail Hail:
“If a new CEO is coming in and they have proven pedigree or their reputation is strong in the market, that will always help support a share price improvement. Or, conversely, if the CEO is not fancied by the market that lead to a reduction.
“Any handover period is normally received positively. It allows you to maintain some of the current trajectory, look at the strategic plan and keep things moving in the right direction.”
The lack of a new manager and Sporting Director will undoubtedly be affecting the share price. Ultimately, these things are fickle, and depend very much on news. Were Celtic to bring in Eddie Howe today, you’d immediately see a sharp increase. However, this unpredictability shows just how difficult trading can be.
If Celtic hold out longer, it could cause investors to become less interested in the long-term. That’s when the panic starts. For now, though, it’s nothing to be too concerned about.