First Team

Farewell Fergie: How could Sir Alex’s retirement impact United’s finances?

After around a quarter of a century in charge and winning countless trophies at Old Trafford, Sir Alex Ferguson has decided to call time on his spell as Manchester United manager. Despite a rocky start, Fergie managed to turn the Reds from an underachieving mid-table side to one of the most successful clubs in the world, and was behind our transformation into a financial powerhouse too.

Throughout his tenure, Sir Alex managed to win 38 trophies, something that almost no other manager has managed to achieve. While we all wish him well in his retirement, the question of what the future holds for United is one that needs to be answered soon. Speculation about his replacement is rife, while the club’s finances will fall under the spotlight once again.

Taking stock

Since their controversial takeover of the club in 2005, the Glazer family have saddled United with debt which started out at £800m. In recent years, the debt has been slashed, while in order to try and monetise the United brand further, they have listed the club on the New York Stock Exchange.

Despite the millstone of debt hanging around the club’s neck, United continue to make plenty of money. The most recent set of quarterly figures show revenue is reaching record levels, especially from sponsorship with firms like Aon. About what could happen to us post-Fergie, Joshua Raymond from city index said:

“Manchester United’s commercial dominance has been further entrenched within their quarterly numbers. Revenues rose broadly in line with market expectations of close to 30% to £91.7m, whilst the recent success of winning the Premier League will also enable the club to secure more lucrative sponsorship deals and increases the value of the Man Utd brand.

“There remains an open question however on the sheer volume of sponsorship deals being secured, which may slow but could also impact the long term value of the brand. For now though, these numbers will likely please shareholders”, he added.

Money no object?

Whoever takes Fergie’s place as manager, there’s going to be a few questions about whether they can bring in the right reinforcements needed for the squad, but they should get plenty of spending money. Without an iconic boss like Sir Alex, the United brand might suffer if we don’t retain our title and perform poorly in the Champions League next season.


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By RedManc

RedMancunian is the number one source for Manchester United news, insight and opinion on the most successful football club in the English top flight. RedMancunian was founded at the end of the 2011/2012 football season. We hope to provide insight on football matters related to Manchester United and provides a sense of what the club was and is all about. Follow RedMancunian on Twitter - @RedMancunian

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