Manchester United case Essay

2665 Words Dec 4th, 2013 11 Pages
Strategic Management: Case Study.
Team 5.

Manchester United: Looking Beyond 2011-12 Season.

By the year of 2011 Sir Alex Ferguson was working hard to keep succeeding as he has been doing it since his arrival with Manchester United. Key acquisitions, new line-ups and strategic decisions had been made. In the other side of the “enterprise”, let’s say the commercial and financial side, Mr. David Gill; current CEO of Manchester United was as well making strategic decisions within the club.

For instance the headquarters needed to me relocated due to the large amount of staff that was working within the club by those years. David Gill was also in charge of the main 3 sources of the club’s revenue:

-Match-day revenues.
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Other brands are associated with specific licensing deals such as “Red Cafes” and “Theatre of Dreams” restaurants. Other sources for Manchester come from different partners like Audi and Budweiser just to mention a couple. Is important to mention also that part of these revenues come from the summer programs that are being done within the United States and Asia, places (specially Asia) in which Manchester United has an immense fan base.

Being broadcasting the most important with a total of 37% of the total revenue, while match-day and sponsorship/commercial revenues with 35% and 28% respectively. The case also mentioned that Manchester United had some financial issues due to the outrageous acquisition financed by debt.

Besides those debt issues, we can state that Manchester United is quite stable and performs extremely well financially speaking. After analyzing this we cab make some proposals for keeping the strong performance they have now:

-To keep going and to make stronger and log term alliances with the current sponsors, as well as with the TV partners the Club has.

-The stadium has just been rebuilt so besides the promotion that Manchester can make, there are not additional changes that can substantially help the already huge attendance to increase.

-However there is one change that Manchester can do and will lead the club towards a more transparent, efficient and with less debt future, and the change is
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