Manchester United is a hugely successful football club with an outstanding history and a fine track record of achievments. With a substantial wage bill like all football clubs, United has constantly placed at the top of the English Premier League every season and have also to reach the latter stages of the Champions League to guarantee substantial revenues to continue boosting their coffers and to balance the books.
Manchester United have also been substantially successful also due to the fact that its coach, Sir Alex Ferguson is one of the best in the world. Installed at the club since 1986, he has won almost every single trophy that there is available in the game and has done so many times. Ferguson has also built a number of teams with players groomed through the youth rankings and this has made the club hugely successful in all departments.
The club has recently been taken over by the powerful Glazer family who already own substantial sporting interests in the United States. Initially there was some concern regarding debt levels when the purchase was made but such has been the incredible success of Manchester United in the past years that revenue has continued to improve the club’s net worth and is currently valued at well over a billion pounds.Sponsorship is another important issue with the club recently securing a multimillion pound deal over a number of years with a top sporting company which will continue to boost the club’s coffers.
Develop vision and mission statements for the organization.
Manchester United’s vision remains basically the same; to be successful at all levels and to continually win trophies. The club however needs to have a proper distinction between its management structure and its operations structure as the manager, Sir Alex Ferguson is occasionally too deeply involved in transfers and commercial aspects of the club. Some may see this as a good thing, however there has to be some sort of dividing line between the two.
Manchester United also need to control its wage bill which seems to be spiralling out of control especially with the recent lucrative contract handed over to their star player Wayne Rooney which is said to top GBP 12 million a year. However the recent influx of younger players into the squad can be an important factor to trim these wage demands on all counts and to provide a more realistic level of expense.
The club’s share of TV rights and revenues is also a crucial part of its income and its deal with the Premier League continues to ensure that it remains at the top. A more agressive approach to this is required at some point for Manchester United to remains at the forefront of the soccer industry, especially with the ongoing rise of the Manchester City phenomenon, a club which is funded by Abu Dhabi billionaires.
Manchester United should also restructure their debt levels which are currently quite high and should also get involved in an outreach programme to increase visibility in areas where they are perhaps not so popular. Rooney is still a substantial crowd puller and revenue generator but the club needs more imagery to be able to match the levels of income it used to achieve with superstars such as David Beckham.
A club like Manchester United should also attempt to involve its supporters more in the decision making process so as not to seem completely detached in an ivory tower. This is crucial for the success and growth of the club as an organization.
Works cited
www.forbes.com/lists/2009/34/soccer-values-09_soccer-team-valuations_value.html
www.transfermarket.co.uk
