Tifo Football: Is Manchester United’s Lack of Success Finally Impacting Their Finances?

RUCK4444

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I get your point but we would directly be owned by the ruling Saudi family, the people who actually give the orders to commit these atrocities. Talk was that the Crown Prince himself would buy us, that's like Kim Jong Un owning us.
Yes I see your point also. The problem is that there are very few people who will spend the huge amount that the Glazers want from the sale.

The outlay is huge for a single businessman, also as I've said previously I'm concerned that businessmen will be treating United as an investment (as have the Glazers.)

To truly kick on and compete with the top European sides we need this type of owner.

As mentioned already, I would like to think that this would go some way to marginally improving things over there, United has the most fans and a huge following, any negative press would be hugely detrimental for their public image from the start.
 

PepsiCola

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Should a day come where Manchester United are owned by the Saudi royal family, I will stop supporting the club.
 

Infordin

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Mental to think that by the end of next year, United’s financial advantage over Liverpool could be almost entirely eroded. When SAF retired in 2013, United’s annual revenue was almost double that of Liverpool.
 

red thru&thru

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Mental to think that by the end of next year, United’s financial advantage over Liverpool could be almost entirely eroded. When SAF retired in 2013, United’s annual revenue was almost double that of Liverpool.
But wait there, I thought Ed Woodward was a genius? I thought on field performances didn't matter to what we could do off the field? Aaah, lets solely blame the managers on this because Ed has done his bit in appointing 4 managers! :houllier:

But yea, it's so disheartening to see what is happening to our club.
 

gajender

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Mental to think that by the end of next year, United’s financial advantage over Liverpool could be almost entirely eroded. When SAF retired in 2013, United’s annual revenue was almost double that of Liverpool.
Do you have the figures because I believe it's highly unlikely.
 

Jim Beam

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But wait there, I thought Ed Woodward was a genius? I thought on field performances didn't matter to what we could do off the field? Aaah, lets solely blame the managers on this because Ed has done his bit in appointing 4 managers! :houllier:

But yea, it's so disheartening to see what is happening to our club.
Very hard to think that someone who is on a such high position can also be so incompetent and give such moronic statements in his supposed field of expertise.

But, there you go.
 

Infordin

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Do you have the figures because I believe it's highly unlikely.
Annual revenue gap between Manchester United and Liverpool:

2017: £217m
2018: £135m
2019: estimated around £70m
(Man United are forecasting a revenue of 560-580m this year while Liverpool expect to break the 500m mark)

If Man United don’t make top 4 again this season (very likely), the gap between the two clubs will be all but eroded in 2020.

The idea that on-field performance does not affect finances is far more true for American football than European football. Dallas Cowboys haven’t won the Super Bowl in 24 years and yet they are financially stronger than ever. European football is a different matter. AC Milan was the third richest club in mid 2000s, now they can barely break the top 15. Even clubs like Dortmund, Atletico and Roma have overtaken them.

That said, I still expect Manchester United to remain one of the richer clubs for at least the next decade. The English Premier League is so rich and the Man United brand is so strong, the cash will continue to flow. However, the idea that Woodward is a financial genius is a bit of a myth. Man United are the most popular club of the most popular league in the world. Woodward rode the coattails of Ferguson’s enormous success.
 

Water Melon

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Annual revenue gap between Manchester United and Liverpool:

2017: £217m
2018: £135m
2019: estimated around £70m
(Man United are forecasting a revenue of 560-580m this year while Liverpool expect to break the 500m mark)

If Man United don’t make top 4 again this season (very likely), the gap between the two clubs will be all but eroded in 2020.

The idea that on-field performance does not affect finances is far more true for American football than European football. Dallas Cowboys haven’t won the Super Bowl in 24 years and yet they are financially stronger than ever. European football is a different matter. AC Milan was the third richest club in mid 2000s, now they can barely break the top 15. Even clubs like Dortmund, Atletico and Roma have overtaken them.

That said, I still expect Manchester United to remain one of the richer clubs for at least the next decade. The English Premier League is so rich and the Man United brand is so strong, the cash will continue to flow. However, the idea that Woodward is a financial genius is a bit of a myth. Man United are the most popular club of the most popular league in the world. Woodward rode the coattails of Ferguson’s enormous success.
Exactly this.
 

DoomSlayer

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Yet people think we can and should be spending hundreds of millions of pounds on players every transfer window. :lol: Our team is well and truly on the way to being a former big club, the financial power is what keeps us afloat and that will disappear quickly in the next 2-3 years if a miracle doesn't happen during that time.

I think it's time we readjust our expectations, reaching top 4 is our new ultimate goal every season. Maybe it's karma for all the years laughing at Liverpool and Arsenal for "underachieving".
 

the chameleon

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Not sure if this has been shared yet but or if it’s true but the Chevrolet shirt deal is under threat.

At this point it’s all falling apart. Not sure how long they can keep Woodward.
 

devlinadl

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Annual revenue gap between Manchester United and Liverpool:

2017: £217m
2018: £135m
2019: estimated around £70m
(Man United are forecasting a revenue of 560-580m this year while Liverpool expect to break the 500m mark)

If Man United don’t make top 4 again this season (very likely), the gap between the two clubs will be all but eroded in 2020.

The idea that on-field performance does not affect finances is far more true for American football than European football. Dallas Cowboys haven’t won the Super Bowl in 24 years and yet they are financially stronger than ever. European football is a different matter. AC Milan was the third richest club in mid 2000s, now they can barely break the top 15. Even clubs like Dortmund, Atletico and Roma have overtaken them.

That said, I still expect Manchester United to remain one of the richer clubs for at least the next decade. The English Premier League is so rich and the Man United brand is so strong, the cash will continue to flow. However, the idea that Woodward is a financial genius is a bit of a myth. Man United are the most popular club of the most popular league in the world. Woodward rode the coattails of Ferguson’s enormous success.
Think you have made an error here. United have already reported revenue for 2019 of £627m. The forecast of £560-80m is for 2020, not 2019. The problem for the club is that 2021 could be even worse if it doesn't qualify for European competition. The Europa League is not as lucrative as the Champions League, but a deep run is still worth £30-40m. In addition, the £75m from the Adidas deal will reportedly drop by 30%, or £22.5m. Therefore, there could be a further drop of £50-60m from the current 2020 season to 2021, suggesting overall revenue of £500-530m (plus any additional commercial revenue that Woodward is able to drum up).
 

Infordin

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Think you have made an error here. United have already reported revenue for 2019 of £627m. The forecast of £560-80m is for 2020, not 2019. The problem for the club is that 2021 could be even worse if it doesn't qualify for European competition. The Europa League is not as lucrative as the Champions League, but a deep run is still worth £30-40m. In addition, the £75m from the Adidas deal will reportedly drop by 30%, or £22.5m. Therefore, there could be a further drop of £50-60m from the current 2020 season to 2021, suggesting overall revenue of £500-530m (plus any additional commercial revenue that Woodward is able to drum up).
Thanks for clarifying. That makes sense.
 

Majima

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Reggie74

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Until United are stop being looked at as a cash cow then this will continue. Commercial interests only matter at United at present so until this changes then expect more of the same. No more merchandise buying from me.
 

Reggie74

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What is the clubs long term strategy?
Sign a shoelace sponsor for the players boots, sign a toilet door sponsor for the public toilets at Old Trafford & sign a sponsor for the United flag sticks sold to fans at Old Trafford
 

fergieisold

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As an outsider I frankly don't get how so many United fans are so cool about this. Looking at the income there are 3 main sources:

1) Attendance. It is actually stagnated, and could only increase if prices go up (unlikely if United is not fighting for trophies and/or decays as a brand) or if OT's capacity is increased (not in plans right now and requires a huge investment). Direct rivals have closed the gap by this point.
2) Commercial contracts. Stagnated, without significant increase for the next years. When renegotiation comes the leverage that the United brand provides could be lower, AND, this resources could end up going to direct rivals that are managing their brand in a better way (so, potentially double bad news).
3) Broadcasting rights. Without Champions (and eventually without UEL as well) and with bad results in the league these numbers go down fast, AND they go straight into the direct rivals pockets.

2 and 3 directly harm United's ability to close the gap in squad quality against top rivals. Which, in the end, is the only way to get back on track fighting for trophies, which would allow to get better Commercial deals, etc.
We've near doubled our commercial income in 6 years, growth cannot go on forever. Other clubs may be closing the gap but we're still clearly leading the pack in the Premier League and Ed Woodward deserves credit for this aspect of the clubs position. Football on the other hand...well that's a different matter!
 

red thru&thru

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We've near doubled our commercial income in 6 years, growth cannot go on forever. Other clubs may be closing the gap but we're still clearly leading the pack in the Premier League and Ed Woodward deserves credit for this aspect of the clubs position. Football on the other hand...well that's a different matter!
You forget a lot of the income has come from the back of the various tv deals. We should have had more slice of the tv deals, but our inept football performances meant we haven't.
 

Schmeichel's Cartwheel

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Should a day come where Manchester United are owned by the Saudi royal family, I will stop supporting the club.
No you wouldn't. If you can just turn off your support, you were never a fan to begin with.

I'd love to stop supporting United, but it's impossible. I could tell everyone I didn't support United, and even say I supported a different club, but deep down I'd still support United, and you would too if you're a proper fan.
 

fergiesarmy1

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No you wouldn't. If you can just turn off your support, you were never a fan to begin with.

I'd love to stop supporting United, but it's impossible. I could tell everyone I didn't support United, and even say I supported a different club, but deep down I'd still support United, and you would too if you're a proper fan.
I know lots of people that say they will also and have been supporting the club for decades, it’s not as cut and dried as saying they weren’t a fan in the first place. Half these guys have plaques on the back of their seats at the ground for how long they have been going. They all also hate the glazers so it’s a tricky one.
 

Siorac

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As an outsider I frankly don't get how so many United fans are so cool about this. Looking at the income there are 3 main sources:

1) Attendance. It is actually stagnated, and could only increase if prices go up (unlikely if United is not fighting for trophies and/or decays as a brand) or if OT's capacity is increased (not in plans right now and requires a huge investment). Direct rivals have closed the gap by this point.
2) Commercial contracts. Stagnated, without significant increase for the next years. When renegotiation comes the leverage that the United brand provides could be lower, AND, this resources could end up going to direct rivals that are managing their brand in a better way (so, potentially double bad news).
3) Broadcasting rights. Without Champions (and eventually without UEL as well) and with bad results in the league these numbers go down fast, AND they go straight into the direct rivals pockets.

2 and 3 directly harm United's ability to close the gap in squad quality against top rivals. Which, in the end, is the only way to get back on track fighting for trophies, which would allow to get better Commercial deals, etc.
Liverpool, with their crumbling, relatively small stadium are challenging the financially unstoppable Manchester City after spending most of the 2010s around 7-8th place in the league (seriously, their finishes from 2009/10 until Klopp's arrival were: 7, 6, 8, 7, 2, 6, and Klopp finished 8th in his first season).

A club like Manchester United, with its global appeal, could still get back there relatively quickly with excellent recruitment and coaching. We just show no signs of doing any of that.
 

Offside

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Should a day come where Manchester United are owned by the Saudi royal family, I will stop supporting the club.
What difference does it make? The club should be owned by the people of Manchester and of Britain. Whilst it's run by a foreign outsider it makes no difference who they are. The club will always be the fans.
 

TRUERED89

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Yet people think we can and should be spending hundreds of millions of pounds on players every transfer window. :lol: Our team is well and truly on the way to being a former big club, the financial power is what keeps us afloat and that will disappear quickly in the next 2-3 years if a miracle doesn't happen during that time.

I think it's time we readjust our expectations, reaching top 4 is our new ultimate goal every season. Maybe it's karma for all the years laughing at Liverpool and Arsenal for "underachieving".
Seems like we've traded places with those clubs :(
 

Schmeichel's Cartwheel

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What difference does it make? The club should be owned by the people of Manchester and of Britain. Whilst it's run by a foreign outsider it makes no difference who they are. The club will always be the fans.
It's just grandstanding. United fans like to act superior to City/PSG fans, like we've got some sort of moral high ground. Anyone who says they'd stop supporting the club is talking nonsense.
 

TRUERED89

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My god that is exactly Man United and the Glazers. That's terrifyingly accurate of our situation. “It’s as if you buy your neighbor’s house. You put down the down payment. You own the house. But your neighbor has to pay off the mortgage. And if the neighbor can’t pay the mortgage, they go bankrupt, not you. That’s a sweet deal.”
 

Johan07

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Annual revenue gap between Manchester United and Liverpool:

2017: £217m
2018: £135m
2019: estimated around £70m
(Man United are forecasting a revenue of 560-580m this year while Liverpool expect to break the 500m mark)

If Man United don’t make top 4 again this season (very likely), the gap between the two clubs will be all but eroded in 2020.

The idea that on-field performance does not affect finances is far more true for American football than European football. Dallas Cowboys haven’t won the Super Bowl in 24 years and yet they are financially stronger than ever. European football is a different matter. AC Milan was the third richest club in mid 2000s, now they can barely break the top 15. Even clubs like Dortmund, Atletico and Roma have overtaken them.

That said, I still expect Manchester United to remain one of the richer clubs for at least the next decade. The English Premier League is so rich and the Man United brand is so strong, the cash will continue to flow. However, the idea that Woodward is a financial genius is a bit of a myth. Man United are the most popular club of the most popular league in the world. Woodward rode the coattails of Ferguson’s enormous success.
Those figures are not completely correct or at least taken out of context as some posters have already posted. You are discussing apples and pears here also. If we are discussing commercial revenue you can read that from respective clubs most recently published AR. And we are still ways ahead of Liverpool there.
Its wrong to compare that to total revenue which for Liverpool has gone up because of their fecking disgusting success on the pitch lately.
 

NWRed

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Just watched this, was about to post it myself.

For those of you who can't be bothered to watch it, a short summary;

1) - Matchday income is stagnated, unlikely to increase unless prices go up, or the stadium is expanded
2) - Commercial income is also stagnated, lack of success means new deals not as likely to be so good
3) - broadcast income increased, but mostly due to new TV deal. Poor performances mean less TV revenue
4) - Financial lead over top 6 clubs has eroded, they have similar spending power to us now
5) - lots of money being spent paying off transfer fees
6) - Wages are 53% of income
7) - profits this year were £50 million, before interest on borrowing (which is 450K per WEEK)
8) - After interest is paid we're left like £26 million, then the glazers paid themselves £22 million
9) - Glazers borrowed £790 million to buy us, the club has paid back £809 million in interest alone since then.

In fact watch the video, it's only 10 minutes.

I think we're in for a big shock over the next few years. Unless performances on the pitch improve and help drive up revenue, we'll look at mid-table mediocracy for a long time.
I fail to see how these points would be different in a positive spin article, as in other words:

1) We fill our stadium every game
2) We've done such a good job on commercial income expansion is difficult
3) Broadcast income has increased.
4) Other clubs are getting stronger because they've learnt from our example.
5) Contrary to populat belief we actually have and continue to spend alot on transfer fees.
6) Wages are just over half of turnover - only bettered by spurs in the PL.
7) We made a profit.
8) After paying off interest, we still made a profit.
9) The club has been able to service it's unnecessary debt for over a decade without a problem.
 

Fluctuation0161

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We've near doubled our commercial income in 6 years, growth cannot go on forever. Other clubs may be closing the gap but we're still clearly leading the pack in the Premier League and Ed Woodward deserves credit for this aspect of the clubs position. Football on the other hand...well that's a different matter!
How much do you think other clubs have grown their commercial income by in the last 6 years? Our growth is in line with other clubs.
 

Fluctuation0161

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No you wouldn't. If you can just turn off your support, you were never a fan to begin with.

I'd love to stop supporting United, but it's impossible. I could tell everyone I didn't support United, and even say I supported a different club, but deep down I'd still support United, and you would too if you're a proper fan.
Define support?

Its that attitude which allows scumbags like the Glazers to keep milking us dry.
 

meamth

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Another point to add, I think we can't cope with the transfer market nowadays.
The price for good players are getting ridiculous, our revenue couldn't sustain it anymore.

Yes with the lack of success, we will struggle to get higher sponsorship money in the future. The next transfer windows couldn't be more crucial..
 

Stepney73

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Yes with the lack of success, we will struggle to get higher sponsorship money in the future. The next transfer windows couldn't be more crucial..
I can just see Woodward chasing Kane,messi and ronaldo and being surprised that they are reluctant to come to a team in a relegation dogfight We will then spank 80 million on an average player from a club like Newcastle,Bournemouth or Everton.