What's The Real Value of the Glazer Effect for Manchester United?

30/09/2011 2:47 pm

Analysis by Brand Finance estimates that the brand value of Manchester United has more than doubled under the six-year stewardship of the Glazer family.

Referring to the mooted IPO, the consultancy argues that United's brand now represents more than 20% of the estimated valuation of £2bn, which would be a 250% uplift in value on the family's £790m purchase price.

Dave Chattaway, head of sports band valuation at Brand Finance, is quoted in the media as saying: “Like them or hate them, it’s hard to dispute the business success story of the Glazers reign at Old Trafford.

"From the heated takeover, to Green and Gold campaign it’s not been an easy ride for the Glazers, but a successful listing will only further cement the value they have engineered. 

"The proceeds will allow them to wipe out debt, retain control and provides the family with a perfect exit route from Manchester with a tidy return.”

However, this analysis provides a very one dimensional assessment of the impact the Glazer's ownership has had on the Manchester United brand. 

Certainly its profitability and success on the pitch cannot be denied.  But the long-term health of the club will depend on more than this.

To secure its success in the long term the Glazer's must also concern themselves with other aspects of its corporate reputation, most notably its transparency and relationship with supporters.

A visible sign of which will be in evidence this weekend when the team takes on Norwich City with both team's supporters choosing to wear green and gold.  While at exactly the same time a few thousand ex-United supporters will be watching FC United kick off against Lancaster City - another lasting legacy of the Glazer effect.

While their immediate financial success is guaranteed, it will be many years before the real value (positive and negative) of the Glazer regime will be known.