Citywire AA-rated Nick Train has used a dip in the share price of holding Celtic following the exit of coach Brendan Rodgers to top up his long standing position in the business.
Train lifted his exposure to the Scottish Premiership champions from 17.1% of shares to 18.4% worth £28.1 million at a price of 160p.
The move came after shares in the club slipped from a recent record of 166p, following last week's announcement that Rodgers would be heading south to serve at Leicester City FC.
In this three seasons at the club Rodgers, who has been replaced by former Celtic footballer and manager Neil Lennon, led Celtic to the league and cup double an unprecedented three times. They also became the first side to complete a top-flight season unbeaten since Rangers in 1899.
Train has held a significant slice of the east Glasgow club since 2011 following a long period in the doldrums through the prior decade.
Since early 2012 it has climbed 120%, to trade at the highest since the late 1990s.
The stake is primarily held in his £5.8 billion Lindsell Train UK Equity fund. The fund, which also has stakes in Juventus and Manchester United, is largest holder of Celtic after billionaire club supremo Dermot Desmond.
Speaking to Citywire last year, Train (pictured) noted that the strongest sporting clubs had an enormous amount of pricing power and an increasing range of revenue sources. 'Sports and entertainment assets remain in a bull market,' he said. 'That which attracts eyeballs to screens is going up in value.
‘Live sport is the most valuable of all entertainment content, with the ability to lure the biggest and most predictable audiences, and all three have benefited from the continued reappraisal of the value of such content in a landscape increasingly defined by fragmented digital distribution.’
Despite a mis-firing performance on the pitch, Manchester United's 2018 results illustrated his point with the club reporting revenue of £590 million for the year ending in June, an increase of 1.5% on 2017’s £581 million. The US-listed club expects revenue of between £615 million and £630 million in 2019.
Broadcasting revenues increased by £10 million to £204 million and the club signed seven sponsorship deals.
He said the breadth of Manchester United’s commercial nous was something he expected to see replicated at Juventus, which achieved a big boost to its global reputation following its signing of superstar Cristiano Ronaldo from Real Madrid
‘His star profile potentially strengthens Juventus’ overall business, in particular the commercial side of it,’ said Train.
He contrasted Manchester's commercial operations, which account for nearly half of its revenues, with those of Juventus, where they make up less than a third. ‘It is lower in both relative and absolute terms and conveys the unrealised commercial potential of Juventus.’
Over the last three years Train has returned 81.4% across his portfolios versus a peer average of 42%.