Skip to main content

Crisis? What crisis at Old Trafford?

A good article from the Evening Standard on why Manchester United continue to be a commercial success, even though their performance on the pitch may be lacklustre (by their standards anyway) and fans are unhappy: Is their really a crisis at Old Trafford?

The article points out the global market is the real battleground in football: 'United have a magical name around the world. As more and more partners – global and regional – sign up to be associated with that magic, that name is actually becoming more and 'more deeply embedded in the consciousness of billions of fans around the emerging economic world.'

Mourinho's brooding sulks and the apparent tensions between him and Ed Woodward all make good media copy and focus more attention on the club. As Ed Woodward recently commented, 'playing performance doesn't really have a meaningful impact on what we can do on the commercial side of the business.'

The fans who go to Old Trafford may complain, but the real customers are on the other side of the world, offering market opportunities which United's sophisticated operation is able to seize.

The share price rose by a further 2 per cent yesterday to close at a record $25.80 and $4.24 billion value. Kieran Maguire of the Price of Football commented, 'another great day for the Glazers and Ed Woodward as another set of win bonuses are saved tonight.' Of course, the share price rises largely anticipate good financial results in September.

Maguire commented, 'Manchester United share price success built on back of commercial arm signing deals with partners. United generate twice as much as Liverpool, Arsenal and Chelsea and 10 times as much as most of "other 14"'.

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....
Post a Comment
Read more