Manchester United: Club for sale, come take a peep

MANCHESTER UNITED, once one of the prized assets in world football, is for sale, a move that will gladden the hearts of the club’s many followers, who have been calling for the Glazer family to leave Old Trafford. While some will be rejoicing, others may temper their glee as nobody really knows who has the resources to take United off the hands of hard-nosed business people from the US. United will not be sold cheap, they will not be unloaded at a bargain price.

According to some reports, the Glazers will be looking to receive a figure north of £ 7 billion, although estimates from around the industry suggest the price may be anywhere between £ 4 billion and £ 6 billion. In a crisis-torn world, this limits the possible buyers and may even land United fans with another owner they struggle to love.

Regardless of any figure plucking exercises, it has to be remembered that this is one of the world’s top clubs, one of the most cash generative in the history of the game. Although United have fallen from their 1990s/2000s highs on the field, they remain an institution that will, sooner or later, return to profit on the pitch. They have most of the ingredients in place to reclaim their position as the most valuable club and with 75,000 spectators at every game, they have vast support to call upon. Old Trafford is an iconic stadium, but it is in dire need of modernisation to make it a statement home for Britain’s biggest club once more.

The Glazers may have recognised football may have reached something of a tipping point. It could be the days of milk and honey are not quite coming to an end, but maybe stagnating. A combination of peaked broadcasting fees, the pandemic and its post-crisis economic reality, along with growing pressure around energy, food, the climate and geo-politics, has created a perfect storm that creates a degree of uncertainty about the future. Football may have a period of adjustment that means greater challenges around its economic model. In other words, the price of football clubs may be at its peak, therefore the time to offload an asset might just be now. Chelsea changed hands for £ 4.25 billion, Liverpool are on the market and now United are seeking fresh investment (translated – we want to sell). Three of the Premier League’s big six may have new owners pretty soon.

The attraction of United should not be underestimated, but we are in an age when some sports teams may be “too big to buy”. Chelsea attracted a couple of hundred interested parties, but how many were realistic? It may be a case of lowering expectations on the part of the seller, or be prepared for a waiting game. US investors have shown they have an appetite in Premier League football and no less than nine of the 20 clubs have some form of US investment/ownership. United fans may be hoping that Jim Ratcliffe, the owner of INEOS, rekindles his interest in acquiring a football club or perhaps a vehicle like the failed Red Knights group that included former Goldman Sachs economist Jim O’Neil, comes forward.

The size of the deal makes another middle eastern transaction look more likely, which might not please some of the United hordes. Indeed, Dubai has already been mentioned in early dispatches, but they have one of a number of sovereign wealth funds with the resources to meet the Glazer’s demands. However, as we have seen in the past two years, with the Qatar World Cup and the Saudi Arabian takeover of Newcastle United, middle eastern connections are often accompanied by public disapproval.

Manchester United key financial figures 2012-22

£mRevenuesP&L (pre-tax)WagesNet Debt
2021-22583(150)384515
2020-21494(24)322419
2019-20509(21)284474
2018-1962727332204
2017-1859026296254
2016-1758157264213
2015-1651549232261
2014-15395(4)203255
2013-1443341215275
2012-13363(9)181295

The Glazers didn’t get off to a good start when they arrived, loading debt onto the club after a leveraged buyout-type deal. The club has, apparently, consumed £ 1 billion of cash in servicing that debt while the owners have benefitted from regular dividends. So unhappy was a section of the support that a new club sprung-up in 2005 out of the discontent, FC United of Manchester, a fan-owned club that, at its peak, were attracting 3,500 people per game.

Manchester United have spent heavily in the transfer market, some € 2 billion since 2004-05, but they have made some very poor purchases in that time and their recruitment policy, generally, has left a lot to be desired. Furthermore, their wage bill has been astronomical, £ 384 million in 2021-22, more than double the amount paid in 2012-13.

They also repeated huge mistakes around the succession of Sir Alex Ferguson, and since he retired in 2013, United have won just three trophies. They have been missing from the Champions League four times and their last Premier League title win was in 2013. Neighbours City have won 12 prizes in that timeframe and Chelsea six. The most successful manager since Ferguson has been José Mourinho, who won the UEFA Europa League and EFL Cup in 2017 and had a win rate of 58.33%.

The recent debacle around Cristiano Ronaldo really sums up where United are at the moment, a club of their size and stature should not have been courting veterans in the first place but wasting so much money in the process was both foolhardy and directionless. It is no coincidence they announced it was exploring strategic alternatives to enhance the club’s growth immediately after reaching an agreement to allow Ronaldo to leave with immediate effect. United have to ensure they don’t allow the current malaise to continue because it is all too easy for big names to wander into the wilderness. This is absolutely the wrong time to be cast adrift.

Manchester United are now so far behind Guardiola’s City it’s painful

RALF RANGNICK said just recently Manchester United need an identity just like their rivals Manchester City and Liverpool. This was a strange thing to say, for United, more than most clubs in Britain, made their name on their identity firstly in the Busby years and then in the trophy-laden time of Sir Alex Ferguson. United provided the blueprint for everyone’s idea of a successful football club, but when Ferguson left, the rug was pulled out from under their feet at precisely the wrong time, for their neighbours were in the ascendancy and had plenty of cash to build their team.

We’ve known for some time Manchester City have overtaken United in most things, but a 4-1 derby defeat merely highlighted just how much of a chasm the difference is between the two clubs. For some time, pundits and United-centric media folk have used the excuse of poor managerial appointments, but United have tried all angles: the brave appointment (Moyes); the proven track record men (Van Gaal and Mourinho); one of our own (Solskjaer) and the far-sighted, fashionable hiring (Rangnick). Ironically, the trophy men delivered the only prizes United have won since Ferguson’s retirement, the FA Cup in 2016, the EFL and Europa in 2017, but that didn’t make the club happy.

What are they really looking for and will they be patient enough to really transform Manchester United from what has become a money-wasting, knee-jerk footballing institution desperate to make up lost ground?

The man they really want is Pep Guardiola, but that can be interpreted as a yearning to buy an off-the-shelf system that can create a new United dynasty. Guardiola is part of a club that is not just signing top players, but is also building something very solid, multi-faceted and very considered. Of course, it is underpinned by vast sums of Abu Dhabi money, but United have not been short of money, they have spent heavily on players – £ 1.3 billion in 10 years, versus City’s £ 1.4 billion – and their wage bill is among the highest in world football, but they have lacked direction and a clear strategy. The longer time passes after Ferguson, the less United-like they seem.

City were excellent at times in the Manchester derby but United’s shortcomings were there for all to see. Harry Maguire is rapidly looking like £ 75 million’s worth of lumbering centre half rather than a modern, articulate defender. Jonathan Wilson of The Guardian captured the Maguire condition perfectly: “A player who can look so commanding, particularly in the less demanding world of international football, has become a liability.” Wilson adds that Maguire goes “wobbling into challenges with all the grace of an Easter Island figure being brought down from a quarry.” To be fair to Maguire, United’s lack of defensive savvy exposes him time and time again.

For 45 minutes, United competed well even though they went in at half-time 2-1 down, but it was the poor second half and 79% City possession depressed the red half of Manchester. The Telegraph commented: “This may go down as one of the most shameful derby defeats in Manchester United’s long history. They are the Damned United on this spineless evidence.” Gary Neville commented on SKY: “Any time they play a half decent team, they lose.”

Kevin De Bruyne, who scored twice in the game, told The Mirror that United’s players did not have the required energy and fitness levels to play the type of game asked of them. “When you play a pressing style, it’s very hard to adjust to it, so maybe it seemed like they did give up a little,” De Bruyne said.

Paul Pogba came in for criticism, a player who has never justified the huge transfer fee United paid for him. Paul Hirst of The Timesasked if the French midfielder will be missed when he eventually leaves. “It is hard to think of a prolonged period when he has put in a series of world class performances…for £ 89 million, United were expecting a much better return on their investment.”

That’s one area where City are faring far better than most, they get more value out of their players. How many of United’s big signings have truly worked out? The players used in the game with United cost them £ 554 million compared to United’s £ 456 million. City’s players have a market value of more than £ 600 million, United’s just under £ 500 million.

United’s market activity has been questioned, and rightly so. Daniel Storey of the points to the gross wastage that comes from a transfer policy that focuses on big, expensive names as well as players others are pursuing. Consider the amount paid to hire veterans like Cristiano Ronaldo, Edinson Cavani and Zlatan Ibrahimovic. As Storey adds, “the most miserable conclusion for any United supporter is that they were outclassed by City because City are light years ahead.”

Ronaldo was missing from the City defeat and must be thanking his lucky stars he has a hip flexor injury. But there are concerns about CR7 and his form. He has scored once in 10 games but he has looked increasingly frustrated in recent games and there are conflicting stories about his relationship with certain players and Rangnick. There are whispers circulating that he was actually dropped. Barry Glendenning, in The Guardian, noted: “While the official United line was that Cristiano Ronaldo had sat this one out in Portugal with hip-knack, pre-match rumours suggested the preening show-pony might have stormed off to Portugal in a hissy-fit upon discovering he would not be playing in a starting line-up that boasted no out-and-out strikers.”

The current situation at United is hard for the Old Trafford faithful to take, but for Sir Alex Ferguson, he must wonder what is happening to the little empire he built. The Manchester Evening News reported: “There was a heart-wrenching acceptance etched across his face as United were humiliated at the Etihad. United are now recognisable to the club that Ferguson left behind but the 80 year-old seems to have come to terms with it. That’s a sad indictment of where United currently are.”

Sources: The Times, The Guardian, The Telegraph, Manchester Evening News, The i, The Mirror.