Mr Marcus McGowan MSc PgDip BA (Hons)

This Business Education Learning Blog is aimed primarily at Higher Business Management students/teachers and ICT students/teachers.

The aim of this blog is to provide you with interesting articles, news, trivia as well as resources or links to materials which will help in your course of study.

I am a Teacher of Business Education and I have written for Education Scotland and BBC Bitesize.

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Tuesday, 22 April 2014

Business of Football - Why Manchester United had to sack David Moyes

It is no surprise to any of our school trip that went to Old Trafford in November to see that Manchester United have parted company with David Moyes. To finish outside the Champions League spots is just unthinkable. Not because United have a divine right to European football, but more in terms of the money situation.

Man Utd are a money machine. They are the world’s biggest sports brand. Okay so they still had a debt of £436.9 million as at 30 June 2012, but they have deals with AON bringing in £20 million a year, Nike (£23 million) and Chevrolet, another £28 million to name a few. But the Broadcasting Revenue the club makes from Europe and the Premier League (as well as endorsements because they could say they were the Champions is somewhere in the region of £60 million plus.

 

However expenses and costs go up to, as witnessed by Wayne Rooney signing an incredible £300,000 a week deal.

 

Basically, a business like United need to maintain their success in order to keep the income streams coming in. After a poor year like they have had on the pitch, no other big firm would keep things they way they were. Imagine if Coca Cola dropped from being number one to seventh? It is unthinkable. Or if Apple had a terrible year of sales for iPhones and iPads? The CEO would step down. Football at this level is no different.

 

And I am sorry to say, it is the financial side of football which has done for Moyes. Managers cannot and indeed will not be given the time that perhaps they need to build a winning team. Instant success is needed by the big clubs and in Manchester United’s case, the big businesses.

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