Manchester United is one of the most popular football clubs in the world. Founded in 1878, it has grown significantly over the decades and was floated on the stock market in 1991. In 2005, the Glazer family took over the club through a leveraged buyout, taking on substantial debt. Since then, the club has worked to refinance its debt and increase commercial revenues through sponsorships and merchandising globally. Manchester United has developed a large international network and brand through commercial alliances, sponsorships, and community/charity programs. However, being a global brand also presents challenges such as differences in international markets and lower fan loyalty compared to national clubs. The main consequences of these challenges include increased local rival fans

1. MANCHESTER UNITED
CASE STUDY
Università degli Studi di Napoli Federico II
Corso di “International Marketing”
Prof. Svend Hollensen - Luigi Cantone
A.A 2014/2015
A cura di:
• Alessia Nacar N27002392
• Carlo Cirillo N27002284
• Flavia Maresca N27002260
• Giacomo Aruta N27002159
• Maria Del Prete N27002185

2. History
• 1878 founded as Newton Health LYR Football Club;
• 1892 became limited company;
• 1902 changed its name to Manchester United;
• 1991 was floated on stock market;

3. Glazer takeover
02/03/03
0% 25% 50% 75% 100%
2,9%
total debt:
£660 million
total amount paid:
£790 million
% share

4. Refinancing
• Cut expenses;
• 2010 Bond issue (£500 million);
• 2012 IPO on New York Stock Exchange (£150
million):

5. Field Results VS Financial
Results
2006 2008 2010 2012 2014
518
424
396
367350327325315
243
2006 2008 2010 2012 2014
1
8
6
4
2
Ranking Revenue

6. Brand Value
0
225
450
675
900
2010 2011 2012 2013 2014
739
837853
412
541
Rank 2 1 1 2 3

7. Goals
• Evaluate the international competitiveness;
• The role of alliances;
• Threats of being a global brand.

8. Evaluate the international
competitiveness
National competitiveness
The Porter
diamond
Competition analysis
Porter’s five forces
Firm
Competitiveness
Network Analysis

9. Porter Diamond
Firm
strategy
-More
competitive
team
Related and
supporting
industries
-British Tv
Factor
-History
-Infrastructure
-Culture
Demand
condition
-EPL is the
biggest league
Chance
-Loyal fans
Government
-Financial FairPlay
-Regulatory
development on
matches and stadiums
(anti-hooligan law)

10. Porter’s five forces
Competitive
rivality
-Other clubs
competing for the
same objectives
Threats of new entry
-Club moving from a competitive
environment to another
Supplier power
-Other clubs selling
players
-Player’s agents
-Supplier of technical
material and service
Customers
-Fanclubs
-Merchandising buyers
-Tv networks
-Sponsor
Threats of substitution
-Other sports
-Other recreational activities

11. MAN UTD’s International
Network
Matchday/Stadium CSR
Soccer school Commercial
International Tour Broadcasting

12. £108 million
CAGR 0.2%
£136 million
CAGR 7.4%
£189 million
CAGR 20.8%
£88 million
£61 million
£107 million
Network Revenue Growth
£ 256m
2008 Revenue
£ 433m
2014 Revenue
SOURCE: 2014 investor presentation

13. SOURCE: 2014 investor presentation

14. Goals
• The role of alliances;
• Threats of being a global brand.
• Evaluate the international competitiveness;

15. MAN UTD’s entry mode
decision
Export modes
(externalization)
low control, low risk, high flexibility
Intermediate modes
shared control and risk, split
ownership
Hierarchical modes
(internalization)
high control, high risk, low flexibility
INTERNAL
FACTORS
Firm size +
International experience +
Product complexity -
DESIRED
MODE
CHARACTERISTICS
Risk propensity +
Control +
EXTERNAL
FACTORS
Sociocultural distance -
Market size +
Intensity of competition -

16. MAN UTD’s network - alliances
Commercial
Sponsorship
Branded
products
New Media & Mobile

17. 2014 Commercial Revenues
£189 million
CAGR = 34.2%
£163 million
£37 million
£16 million

18. Sponsorship
GLOBAL REGIONAL

19. Chevrolet - Largest Sponsorship Deal
Shirt sponsorship 14/15
Starting at $70 million p.a.- $559 million total through 2021

20. Chevrolet - Largest Sponsorship Deal
Annual Value of Shirt
Sponsorship (£ million)
0
13
25
38
50
2000/06 2006/10 2010/2014 2014/21
49,2
19,6
14,1
8

21. Sponsorship
GLOBAL REGIONAL

22. CSR and Cause Related Marketing
FOOTBALL
Provide football
opportunities for
school children
including children
with physical or
mental disabilities
COMMUNITY
COHESION
Engage some of the most
hard to reach young people
in the community by
delivering football coaching
and a range of alternative
activity sessions
HEALTH
Deliver a range of
programmes to
improve the health
and wellbeing of local
communities
CHARITIES
The foundation
manages the Club’s
charity partnership
with UNICEF
EDUCATION
Partenership with schools
to create community hubs;
deliver a range of
educational programs to
primary and secondary
schools, using Manchester
United as a hook to
engage students

23. Manchester United for
UNICEF
Manchester United has been working with Unicef since
1999 through the United for UNICEF partnership.
The club has raised over £2.5 million for Unicef
programmes, which has benefitted more than 2.2 million
children worldwide. To date, the partnership is the
longest collaboration between a football club and a
global charity.
The annual United for UNICEF Gala Dinner, held at Old
Trafford, and attended by all the first team players, is a
highlight in the partnership calendar. The most recent
e v e n t i n N o v e m b e r 2 0 1 4 r a i s e d a r e c o r d -
breaking £210,000.

24. Goals
• The role of alliances;
• Threats of being a global brand.
• Evaluate the international competitiveness;

25. Global Brand: Pros and Cons
PROS CONS
Reach more customers
Differences in the administrative
procedures and product placement
can occur
Consistency in brand image Different regulatory standards
High profit margin
International fans are less loyal than
national fans
Lower costs Drop in success rate after last defeats
Tours to the sponsors’ country
Consistent building of iconic player

26. Which are the main
consequences of the cons?
INCREASE OF THE RIVAL FANS IN THE
SAME MARKET
CONSEQUENCES OF THE CONS
FEWER
MERCHANDISING
REVENUES IN
INTERNATIONAL
MARKET
LOWER BRAND
VALUE &
AWARENESS