ABSTRACT
Case Summary Manchester United is one the greatest club names in world football. Its reputation derives firstly from its formidable record of achievement on the field of play from the early 1960s onwards. In 1968 it became the first English club to win the European Cup; and in the more recent era has won the English Premier League 9 out of 15 times since the competition’s inception in 1992/1993, also winning the European Champions League in 1999. Secondly, Manchester United enjoys an iconic status with its supporters. The origins of this status lie in the way in which it’s most celebrated manager, Sir Matt Busby, rebuilt his team after a tragic air crash at Munich Airport in 1958 that left eight players dead and many others seriously injured. Busby’s re-fashioned team then become associated with the free spirit which characterized the liberal social changes in Western Europe and North America of the 1960s, notably embodied in the playing style of the team’s flamboyant and mercurial forward George Best; a spirit which was reflected in the team’s, the so-called Red Devils, buccaneering attacking style of play which saw Best supported by other equally extraordinary, attacking players such as Bobby Charlton and Denis Law. The name of Manchester United continues to be associated with the romance of the team of that period, and this has become a critical factor in the make-up in the modern Manchester United brand. Many would argue that this is in fact one of the key reasons why it remains England’s best supported team with average attendances in the 2006/2007 in excess of 75,000 for every league game. Thirdly, since it became the first English football club to float on the London Stock Exchange in 1991, Manchester United has consistently been Europe’s most innovative club in terms of the development of its commercial strategy, and continues to be its most profitable. The BSkyB pay-TV broadcasting company unsuccessfully tried to take over the company in 1999. In 2005 it was these successful commercial attributes which led the Glazer family, owners of the Tampa Bay Buccaneers National Football League (NFL) American football franchise to buy Manchester United and de-list it from the stock exchange. This case examines how this successful commercial strategy was developed by the Board of Manchester United Plc from the mid-1990s onwards, and examines its prospects for continued success given that under the ownership
• Operating environment • Commercial strategy • Marketing strategy • Brand management • Sponsorship
of the Glazers, Manchester United has moved from being debt-free to carrying very significant borrowings on its balance sheet which demand very high interest servicing payments each financial year; and has adopted an aggressively commercial approach to its relationship with the club’s supporters which critics argue may erode the traditional strength of the brand in the medium term and ultimately threaten revenues in the long term.
