One way of looking at the increase in value of the company is that in 1989 the chairman tried to sell the club for 10 million. 10 years later BskyB tried to, unsuccessfully, take over the company with a bid of 638mmilion.

In this essay I would look at how such amazing growth has been achieved. (see appendix 1)

The main source of income for almost any football club is gate receipts (see appendix 2). In 2001 gate receipts totaled 46.2 million, compared to 36.6 million in 2000. This increase is partly due to the expansion of the stadium. If it was not for the expansion of the stadium, then you would expect the percentage to have gone down because of the increasing growth of other sectors of revenue.

The company has developed an innovating spiral system, It starts by employing the right people to modernize the

Man U TV , the clubs own satellite channel was launched in 1998 in partnership with BskyB, the channel has been a low risk investment for the club. Then the firm will benefit from subscription revenue, it will also be an effective way to market clubs merchandise.

A well developed brand such as Manchester United, as a football team, will get many offers for sponsorship, which will mean the company logo would be displayed on the team shirt. This is why the largest telecom company Vodafone has signed a 30m sponsorship deal with Manchester United . This was a ground braking agreement as the deal goes beyond the usual shirt sponsorship. Man U supporters are promised special deals on mobile phone and wireless internet services. This will offer many new opportunities to both companies. There is business potential in bringing together of the worlds largest telecommunication company and the worlds best know football club.

Danny McGregor, commercial manager, he created a whole new way of selling a match day ticket. It was a sort of a package designed to attract far-flung and corporate fans to the club. These people were most likely to spend money on the profit making value added extras than local fans. Extras include walks around the pitch and drinks with former players. Such value added extras mean that Man U was able to charge 400 for an item that would otherwise retail at 16.

club, for example, bring in new players. These managers then start concentrating on the long term goals such as setting up a youth squad, and a school to bring up good players. Such reforms would lead to the success of the company.

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Approximate Word count = 1273
Approximate Pages = 5 (250 words per page double spaced)