Danger in the penalty area

SPURS fans were sick as parrots at their team's defeat by Everton in the FA Cup semi-finals. The share price also dropped off its perch, as £5m was wiped off in just one day's trading.

Manchester United supporters, however, were over the moon when their side beat Crystal Palace 2-0 in a replay to claim their place at Wembley. But the shares rose just 1p the following day, the markets seemingly having already predicted a victory.

Performance on the pitch and on the trading floor are closely linked. Success means better attendances, enhanced television rights, sponsorship deals, and the possibility of the prize of playing in Europe.

United, Spurs and Millwall are listed on the stock market. The share prices of both Spurs and Millwall have shadowed their league position throughout the season.

Spurs have had a dramatic year. They started from a low base, when last year's share price dipped to 70p,on troubles with the FA and a failed diversification into the clothing business. The purchase of three internationals, including Jrgen Klinsmann, increased revenue from season ticket sales, and made the shares rocket in September to 162p. They reached that point again in December, when the club was readmitted to the FA Cup, which represents a healthy chunk of revenue.

Reggie Burr, outgoing chairman of loss-making Millwall, says that performance has greater impact on the share price at particular times of year. ``We picked up in November of last year because of a good run in the cup. But there was a bad patch in the second week of March when we dropped out of the reckoning to get into the Premiership next year.''

Manchester United hit a low in December when they were knocked out of the European Cup. They slipped again when Eric Cantona launched a kung- fu kick on a fan in January. United's off-pitch activities, such as selling team kit, make up over half of turnover.

Celtic's on-field fortunes have improved since their flotation in November, reaching the finals of the Coca-Cola and Tennents cups. Celtic raised a massive £14m, and have been able to pump money into improving their side and their pitch, Celtic Park.

Norwich City are expected to be the next to float, in the new smaller companies market, in June. ``We expect half of the Premier League clubs to float and raise money in this way'' said Robert Chase, the chairman.

But before readers reach for their cheque books they will do well to look at the risk factor. Past performance is not necessarily a guide to the future, as Arsenal fans will testify.

Keith Wilson of Panmure Gordon, the stockbrokers, considers Manchester United a strong investment, with a good growth record, and sound dividends. Spurs he sees as still too volatile to invest in personally. And Millwall? ``I wouldn't really touch them at the moment,'' said Mr Wilson.

With the share price down from 9.66p when first sold in 1990, to around 2p now, who can blame him?