May 8, 2013, 12:44 PM EST
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.
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.
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.
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.
Jan 31, 2015, 8:15 AM EST
Socceroos do the business on home soil, beat South Korea in extra time in Sydney.
Jan 31, 2015, 7:38 AM EST
Watch Hull vs. Newcastle live online, right here.
Jan 31, 2015, 7:29 AM EST
Where and how to watch every PL game during Week 23 live online or via the app.
Jan 30, 2015, 11:57 PM EST
Transfer deals that have been confirmed over the past day or so.
Jan 30, 2015, 10:59 PM EST
Bayern Munich head man Pep Guardiola sees where his squad went wrong in its 4-1 defeat against Bundesliga opponent VfL Wolfsburg.
Jan 30, 2015, 9:48 PM EST
Roy Keane is at the forefront of trouble again.
Jan 30, 2015, 9:08 PM EST
Preview of a previously eye-catching match, Manchester City v. Leicester City, tomorrow morning on NBCSN.
Jan 30, 2015, 7:49 PM EST
The Men in Blazers are at it again.
Jan 30, 2015, 7:00 PM EST
Danny Ings looks poised to stay at Burnley due to a certain transfer rule that would block his departure to Liverpool.
Jan 30, 2015, 6:05 PM EST
United States and Borussia Dortmund II’s Joe Gyau underwent another surgery on his torn meniscus, and he could be done for the season.
Jan 30, 2015, 5:20 PM EST
Real Madrid midfielder Gareth Bale will replace Cristiano Ronaldo as the current world’s best player will serve a two-match ban coming from last week’s tilt vs. Cordoba.
Jan 30, 2015, 4:35 PM EST
Preview of Hull City vs. Newcastle on NBCSN this Saturday morning.
Jan 30, 2015, 3:45 PM EST
Juan Agudelo is back with Major League Soccer’s New England Revolution, and amidst a few possible issues, there is no reason his addition cannot help guide Jay Heaps’ side to victorious ways in the East.
Jan 30, 2015, 3:07 PM EST
Let’s take a gander at how things may’ve changed since JPW checked the needs earlier this month.
Jan 30, 2015, 2:00 PM EST
Where and how to watch every PL game during Week 23, here.
Jan 30, 2015, 1:48 PM EST
If my math’s right, and it probably isn’t, close to 10 percent of the world’s population will watch Manchester City visit Chelsea on Saturday.
Jan 30, 2015, 1:06 PM EST
The Socceroos have received a single goal from nine other players in a bid to become the first hosts to win the Asian Cup since Japan in 1992.
Jan 30, 2015, 12:52 PM EST
Cameron talks about his love for the Pats, growing up in Boston and more in his latest dispatch from England.
Jan 30, 2015, 12:22 PM EST
PST’s Joe Prince-Wright and Mike Prindiville sit down to talk Lampard vs. Chelsea in this week’s PST Extra, with a little Diego Costa suspension talk as well.
Jan 30, 2015, 12:02 PM EST
PST’s Lead Writer and Editor predicts the winners and losers in Week 23.
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- WATCH: Premier League TV schedule – Week 23 0
- Geoff Cameron predicts Super Bowl XLIX win for his New England Patriots 1
- Prince-Wright’s Premier League picks: Manchester City, Arsenal, Saints to win 0
- Premier League Preview: Chelsea vs. Manchester City 0
- Ban upheld: Diego Costa to miss Saturday’s visit from Manchester City, 2 more 3