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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 UefaEuropean 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.

 

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