Manchester United's Debt Crisis

1504 Words Apr 1st, 2015 7 Pages
Not a single firm is immune from having issues that need to be addressed in order for the company to stay competitive. Though not traditionally thought of in a "business" sense, Manchester United is every bit a corporate entity that seeks to remain competitive and profitable. Although, competitive in this sense is much more literal as actual head-to-head competition takes place. While Manchester United has been at the top of the soccer world for close to three decades, it may now be in its most dire position competitively and financially.

Issue 1: Manchester United’s Debt
One of the first strategic issues we see with Manchester united is their massive debt from takeover by Glazer family. The Glazer family, who took out $1.47 billion in debt in 2005 to purchase the club, has put Manchester United in a tough spot. Their initial response to reduce the debt levels was initiated by taking Manchester United public in 2012. However, there was fear of many that the club would not be able to attain and retain top talent because of the remaining debt that is still very present. Last year their revenue fell 14% because the team did not qualify for the Champions League, which represented their worst season in over two decades. Manchester also bared a loss in share value compared to a profit in the year prior. That initial fear of maintaining the best talent had become a reality, and with the loss of these potential earnings from qualifying for the Champions League. As long as this…

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