Invest in Manchester United? You'd be better off at the bookies Well, not quite. Firstly, a rising tide lifts all boats and US equities have enjoyed a bull run since United came to the market last year. Also, the IPO was at a lower level than expected, with the flotation coming not long after the embarrassment of Facebook's disastrous listing and subsequent plunge. Edward Woodward, United's vice chairman, said that the "calibre" of investors at that level would reduce the risk of volatility. However, the real reason was that Wall Street wanted the shares "priced to go" and the gains to date are a factor of that reduced pricing. Indeed the shares, at $18.77 are only just above the middle of the targeted range from the marketing meetings before the listing took place. Forecasting future profits at sports clubs is a very difficult task. The amount of money spent on players and the amount of trophies and prize money that will be won over the next year or two is a matter of substantial debate. Also, the valuation looks a little stretched. The market valuation of the club as a whole is a little over $3bn (£1.9bn) The earnings multiple based on analyst profit expectations this year is a staggering 53 times, but this does fall to 26.6 next year. This means that, at the current level of profitability, it would take 53 years for the club to earn enough money to buy back the shares from you. The reason the multiple is so high is the amount of debt carried by the group - currently about £368m - means that a lot of potential profits are being used to service the debt that was, controversially, part of the Glazer family's buy-out in 2005. Therefore, owning shares in sports clubs, even some of the world's best, is really just another form of merchandising for fans. Real investors should look elsewhere - or make a trip to the bookies.