Skip to main content

United's finances and the change of management

The financial imperatives behind firing Solskjaer are clear. The Glazer family hope to return to pre-pandemic annual revenues of more than £600m this season, making it one of the richest football clubs in the world.

Much of this income is remarkably predictable. Broadcasting rights are sold centrally by the English Premier League and Uefa, European football’s governing body. United’s Old Trafford stadium is sold out every match, maximising ticket and hospitality income. Sponsorship remains strong.

The one area of financial volatility surrounds whether the team qualifies for the Champions League, Europe’s most prestigious club contest in which €2bn is shared among participating clubs. A dismal run of five defeats in seven Premier League games means the club risks missing out on next season’s competition.

United’s strong business was built on enormous on-field success under Ferguson. Over 26 seasons, he led the club to 13 Premier League titles, two Champions Leagues and numerous other honours. As the football industry grew over recent decades, United became one of the sport’s pre-eminent brands.

Yet, as writer Rory Smith put it in the New York Times: “Ferguson does not seem to have left behind anyone at Old Trafford who truly understood the inner workings of his winning machine.”

It was clear that that Ferguson believed each successful team had a life cycle of about four years, after which time change was necessary, even if that meant transferring away established stars in favour of younger players.

Instead of this ruthless approach, United has been trapped in nostalgia, argues the Financial Times. Solskjaer was hired not as a coach with an elite record, but as a legendary ex-player.   In the view of the Pink 'Un there needs to be a clearer divide between the football and business sides of the club.

 

Labels:

Comments

Post a Comment

Popular posts from this blog

Wolves get raw deal from FFP

  I used to see a lifelong Wolves fan for lunch once a month.   He was approaching ninety, but still went to games.   Sadly he passed away the other week. As football finance guru Kieran Maguire has noted, Wolves continue to be constrained by financial fair play rules.  Radio 4 this morning described them as this year's 'crisis club' and the pessimists have certainly been piling in. Martin Samuel wrote sympathetically in the Sunday Times yesterday, saying that the Premier League drives talent away with regulatory red tape: 'Why could Al-Hilal sign Neves? Because Wolves needed the money. And why did Wolves need the money? Because the club had to comply with an artificial construct known as financial fair play. So Wolves are going skint, yes? No. There is no suggestion that Wolves are in financial trouble, only that they are failing to meet the rigours of FFP. Wolves’ owners appear to have the money to run the club, and invest in the club, and in fact came up with a pow
Post a Comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is
Post a Comment
Read more

Charlton takeover approved

The long awaited takeover of Charlton Athletic by SE7 Partners from Thomas Sandgaard has been approved:  https://londonnewsonline.co.uk/se7-partners-obtain-efl-approval-for-charlton-athletic-takeover/ Charlton have had unhappy experiences with owners for over a decade, so how this works out will remain to be seen.  There is certainly potential there, but will it be realised? This interview with Charlie Methven gives detail not available elsewhere:  https://thecharltondossier.com/charlie-methven-on-the-record/
Post a Comment
Read more