Skip to content

Will Ferguson’s retirement affect United’s finances?

May 8, 2013, 12:44 PM EDT

Manchester United executives and owners ring the opening bell at the NY Stock Exchange Reuters

As the news about Sir Alex Ferguson’s retirement continues to reverberate around the globe, one area many will be looking at is the stock market.

With Manchester United registered on the New York Stock Exchange, the club was obligated to inform the NYSE about Ferguson’s decision to retire, which ultimately led to the news being leaked earlier than the club expected.

The news was actually announced while US markets were closed, but when trading began in New York this morning the club’s shares fell as much as 4.5%.

Since the Glazer family bought United in a controversial deal back in 2005, the debt laden club have soared to success commercially. The value of the Manchester United brand is approximately $3.17 billion. They should survive, with or without Ferguson.

(More: Ferguson retires, who will take his place at Manchester United?)

However recently there has been a concerted effort by the Glazers to drive down debt, with a bond issue in 2010 raising £500m, and a 10% flotation of the club on the New York Stock Exchange raising some £150m, half of that has gone towards reducing debt.

But with Ferguson on the way out and investors watching intently as to who will replace him, should Manchester United fans worry about future financial problems?

Yes and no. On the plus side, when you scroll through Manchester United’s website no fewer than 33 different sponsors appear and commercial revenue is through the roof.

United recently posted their financial results in sales for the third quarter, a record £91.7m ($143m) was generated through sponsorship deals and Champions League revenue. The clubs debt now stands at $571 million, a lot healthier than the $1.11 billion that rose to in 2009.

(More: Stability key to Ferguson’s success at Old Trafford)

But all those numbers don’t mean much, unless you have a winning team.

The Manchester United brand means winning. It has been associated with that since the early 90s, growing up in England during that time period, it seemed like you couldn’t walk down any High Street in the country without the famous “Glory, glory Man United” song blaring out, a Cantona No. 7 shirt being worn and just about every piece of merchandise you can think of adorning their Red Devil mascot.

Fred the Red, as he’s known, gets everywhere.

Sir Alex Ferguson was the main man behind all the on-field success that drove the financial success. Now he is gone, a replacement who can carry on his work seamlessly and without much upheaval is paramount to United’s success as a soccer team, and as a business. Jose Mourinho would ease concerns for United’s financial backers, while David Moyes in charge could send share prices into a spin, as investors panic about the Scotsman’s lack of experience on Europe’s biggest stage.

(More: Moyes to replace Ferguson in next few days?)

We can’t judge United’s commercial success over the next few years. But in 2022 we may look back and point to May 8, 2013, as the day the Manchester United brand started to go downhill.

But with Ferguson’s new role as both a director and ambassador for the club, that’s unlikely to happen. He helped build this club up, almost doubling the capacity of Old Trafford and spreading the club from the red half of Manchester to the far flung corners of the globe.

One final number. In the 1992-93 season Manchester United’s revenue was £25.2 million. During the 2011-12 season, it stood at  £320.3 million. Safe to say that Ferguson has left United in a much better position than when he arrived at Old Trafford in 1986.

Now it’s up to the new guy to carry on his good work.

Latest Posts
  1. NWSL Digest: Reign, Flash flying as we move from past Week 1

    Apr 17, 2014, 12:24 AM EDT

    vicky_losada

    Week one of the NWSL season sees Seattle atop of the league, but an import from Spain snagged her own headlines for Western New York.

  2. Henry, Sam goals see New York break into the win column

    Apr 16, 2014, 10:22 PM EDT

    Thierry Henry 4

    It took six-and-a-half weeks, but last year’s Supporters’ Shield winners have their first victory of the season.

  3. WATCH: All the goals, highlights from the Premier League’s mid-week matches

    Apr 16, 2014, 9:40 PM EDT

    arsenal AP

    Three matches the shoot up the title, Champions League races:

  4. Ranking the candidates for MLS’s next expansion team (after Atlanta’s Wednesday announcement)

    Apr 16, 2014, 8:57 PM EDT

    MLS Logo

    One location is the clear favor for No. 24, but down to one slot, the competition could pick up.

  5. With Agüero, Negredo removed, should we point the finger at Pellegrini?

    Apr 16, 2014, 7:57 PM EDT

    manuel_pellegrini Getty Images

    Like his players, City’s boss has plenty of questions to answer after Wednesday’s disappointment.

  6. Atlanta, MLS don’t need to quiet doubts to be successful in the Southeast

    Apr 16, 2014, 6:52 PM EDT

    Arthur Blank AP

    If Atlanta, Miami aren’t good sports towns, it may not matter. The doubts critics have cast on the league’s Southeast excursion may be irrelevant.

  7. Real Madrid beat Barcelona to win Copa del Rey, as Bale’s brilliance seals it

    Apr 16, 2014, 5:40 PM EDT

    Gareth Bale AP

    Real win Copa del Rey as Barcelona’s bad run continues:

  8. It’s official: Atlanta gets Major League Soccer’s 22nd franchise

    Apr 16, 2014, 5:26 PM EDT

    Arthur Blank AP

    One more spot in MLS’s planned expansion is gone, with Atlanta set to begin play in 2017.

  9. Manchester City 2-2 Sunderland: Two Wickham goals, late Nasri equalizer leave sides even (video)

    Apr 16, 2014, 4:52 PM EDT

    connor_wickham Getty Images

    Two late goals gave Sunderland a lead, one City pulled back just before full-time.

  10. Everton 2-3 Crystal Palace: Toffees’ top four hopes take huge hit

    Apr 16, 2014, 4:51 PM EDT

    Everton v Crystal Palace - Premier League Getty Images

    Eagles soar to safety, but Everton’s Champions League dreams are in ruins:

  11. Fernando Llorente: Carlos Tévez and I deserve to go to the World Cup

    Apr 16, 2014, 3:37 PM EDT

    Italy Soccer Serie A AP

    Two of Serie A’s most productive scorers may not be at this summer’s World Cup. Llorente wonders why.

  12. WATCH: Premier League Player of the Week – Week 34

    Apr 16, 2014, 2:56 PM EDT

    Philippe Coutinho, Steven Gerrard AP

    Which Liverpool player picked up the Player of the Week accolade?

  13. Watch Live: Manchester City vs. Sunderland (Lineups and Discuss)

    Apr 16, 2014, 2:44 PM EDT

    sergio_aguero Getty Images

    Both sides look to cash in on matches in hand at the Etihad.

  14. Watch Live: Everton vs. Crystal Palace (Lineups and Discuss)

    Apr 16, 2014, 2:25 PM EDT

    Everton v Aston Villa - Premier League Getty Images

    Can Tim Howard and the Toffees win their eighth-straight game? Watch live online, right here:

  15. Ahead of Atlanta’s expected MLS entry, are NFL stadium shares the way to go?

    Apr 16, 2014, 2:00 PM EDT

    Source: AtlantaFalcons.com Source: AtlantaFalcons.com

    Having MLS teams share their home with NFL sides could be a smart move ahead of the next wave of expansion:

  16. WATCH: Premier League Team of the Week – Week 34

    Apr 16, 2014, 1:28 PM EDT

    Liverpool's defense still looked leaky, but a mistake from Kompany saved them. AP

    Find out who made the PL Team of the Week, right here:

  17. Premier League Preview: Man City host Sunderland, Everton face Palace

    Apr 16, 2014, 12:35 PM EDT

    Britain Soccer Premier League AP

    Two PL matches take place on Wednesday, with both set to impact the top and bottom of the standings:

  18. NBC to air all 10 Premier League games on final day in “Championship Sunday” extravaganza

    Apr 16, 2014, 11:15 AM EDT

    nbcsports_new

    Watch all 10 PL games across 10 different channels on final day of the season. All the details, right here:

Featured video

PST Extra: Race for the PL title