Will Ferguson’s retirement affect United’s finances?

1 Comment

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.

Podolski goes out with super goal; Germany tops England

Photo by Shaun Botterill/Getty Images
Leave a comment

The highlight of Wednesday’s international friendly docket was Lukas Podolski‘s final match for Germany, and the former Arsenal man did not disappoint his crowd.

But first, Canada plays its first match since unveiling new coach Octavio Zambrano.

[ MORE: Zlatan still bitter with Guardiola ]

Scotland 1-1 Canada

Zambrano saw plenty to like from his new side, as Canada went ahead early with a goal from former Scottish youth Fraser Aird. Toronto-born, the ex-Rangers and current Falkirk man got his first Canadian goal against the team he represented at U-17 and U-19 levels.

Norwich City’s Steven Naismith redirected Tom Cairney‘s shot to make it 1-1 before the break, but Scotland never found its way back into Canada’s net.

Germany 1-0 England

Lukas Podolski scored his 49th international goal in his final cap for Germany, and it was spectacular.

Joe Hart didn’t stand a chance.

The match saw big stops from both ‘keepers, as Hart thwarted Leroy Sane on a second half break after Marc-Andre Ter Stegen defied Dele Alli in the opening 45.

Podolski subbed off in the 84th minute to wild applause, but it must sting slightly to know you finished an illustrious career one goal short of a nice, round 50. We guess he’ll have to rest on his millions and millions of earnings and loads of on-field honors.

Elsewhere
Vietnam 1-1 Chinese Taipei
Philippines 0-0 Malaysia
Cyprus 3-1 Kazakhstan
Yemen 0-1 Palestine
Cambodia 2-3 India

McClean to wear No. 5 in honor of deceased ex-teammate

Photo by Tony Marshall/Getty Images
Leave a comment

James McClean is a colorful personality who doesn’t shy away from strong opinions — he once called Jurgen Klopp “a bit of an idiot” — and the West Brom man is using the big stage of World Cup qualifying to proudly honor a deceased ex-teammate.

McClean has long before friends with Derry City captain Ryan McBride, who shockingly died hours after leading his side to a league win this weekend. Given his age (27), few saw it coming even after McBride admitted to feeling ill after the match.

[ MORE: Zlatan still bitter with Guardiola ]

McBride and McClean played together at Derry, and the latter was excused from Republic of Ireland training to attend funeral services this week.

He’s still expected to play a role in Ireland’s World Cup qualifier against Wales on Friday, and McClean will don the No. 5 of McBride. Irish defender Richard Keogh usually wears the number and agreed to the change.

NASL side to broadcast all its matches on Twitter

sfdeltas.com
Leave a comment

It’s fair to expect the San Francisco Deltas to be trendsetters in tech given their location and pedigree, and the first-year NASL club is doing just that.

The Deltas announced Wednesday that all of their home matches will be broadcast live on Twitter — in English, Spanish, and Portuguese — making them the first North American pro club to broadcast all of their matches on social media.

[ MORE: Zlatan still bitter with Guardiola ]

Twitter senior executive Josh McFarland had previously named as one of the investors in the Deltas, which makes the announcement even more natural. Other investors include tech execs from around the Silicon Valley.

Zlatan: Guardiola falling out “still drives me”

Photo by Claudio Villa/Getty Images
Leave a comment

Time heals all wounds, but Zlatan Ibrahimovic can still feel the scars from his falling out with Pep Guardiola.

The megawatt personalities saw their relationship deteriorate at Barcelona, with Ibrahimovic loaned to AC Milan one year after scoring 21 goals in 45 matches for Guardiola and the Blaugranas.

[ MORE: How will U.S. line up vs Honduras? ]

Ibrahimovic never played for Barca again, and now has a chance to stare down Man City’s Guardiola in a Manchester Derby which could alter the Top Four fortunes of both sides. And he’s still powered by Pep.

From The Guardian, quoting a Sky Sports Italia interview:

“The problem wasn’t with me, it was with him, and he never came to terms with it. I don’t know what his problem was with me. It is something that drives me, gives me adrenaline and extra motivation. It is normal after what has happened. I’m using it as a positive, not negative.”

United visits City at the Etihad Stadium on April 27, and Ibrahimovic will be extra motivated (if that’s possible for the Swede, who seemingly would be fired up to beat someone in arcade bubble hockey).