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More woe for Moyes and Co as United's share price drops by £250MILLION in four weeks
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Manchester United's tumultuous season has taken another nosedive with news the club's value has plummeted by a quarter of a billions pounds in the last four weeks.
As string of woeful results - including three defeats in a week for the first time since 1992 - have taken their toll on the business as David Moyes struggles to maintain United title's defence.
The Glazer family took control at Old Trafford in 2005 and have saddled the club with huge amounts of debt to finance the purchase. In the last five years they have paid £400million in interest alone.
The Glazer family took control at Old Trafford in 2005 and have saddled the club with huge amounts of debt to finance the purchase. In the last five years they have paid £400million in interest alone.
[LEFT]Something to smile about? United secured a much-needed victory over Swansea at the weekend
And the recent string of poor results means the share price has dropped by £250m to £1.5billion.
United could withstand the one-off loss of the £29m they received from UEFA for last season's campaign in the Champions League, but a prolonged absence would have serious knock-on effects.
Not least of the problems would be the threat to deals such as its retail partnership with sportswear group Nike, which pays United a minimum of £25m a year for the sale of two million replica shirts around the globe.
Those sales helped to earn United an additional £12.8m from the agreement last year.
And though Nike is expected to renew its deal in the next few months, the team's recent decline could weaken the club's bargaining position.
With financial forecasts for 2013-14 based on a third-place finish in the Premier League, the club's New York-listed shares have slid to a little more than £9 from more than £10.95 in May.
Net loss: Despite a win at the weekend, United's performances on the pitch are having a negative effect on the business off it
Losing game: Fabio Borini (right) condemned United to defeat at Sunderland last week
'You were always going to have this transitional period, when it was not clear if United would carry on winning,' said Simon Chadwick, sports business professor at Coventry University. 'But this is the nightmare scenario, as opposed to the seamless transition.'
Under Ferguson, United grew into a global brand that claims more than 650m followers. Turnover this season is forecast to reach between £420m and £430m, well ahead of their Premier League rivals.
Injuries to strikers Wayne Rooney and Robin van Persie have not helped United's cause, but the ageing squad looks in desperate need of an expensive overhaul.
The team's struggles have also reignited resentment among a vocal group of fans who have never forgiven the Glazers for loading the club with debt to finance their £790m takeover in 2005.
'The main problem is not the choice of manager but the lack of investment in the side,' said Sean Bones, of the Manchester United Supporters Trust. 'If you look at Real Madrid, Barcelona, Bayern Munich, they are supporter-owned clubs whose revenues are pumped back on to the field to improve the team.'
Absent friends: Injuries to Van Persie and Rooney have seriously hampered United's campaign
Club insiders say that money is available and transfer targets have been identified, though rivals across Europe are reluctant to trade top players at this stage of the season.
More than one season out of the Champions League, however, could be the prelude to a different story. That the club generates so much cash gives United a degree of wriggle room, says former Chelsea chief executive Trevor Birch, now a partner at accountancy firm BDO.
'The worry at the moment is that their current form is a portent of the potential for longer-term decline,' Birch said.
Coventry University's Chadwick, meanwhile, pointed to the travails of Liverpool.
'As we've seen with Liverpool, the road back to the Champions League can be a long and difficult one,' Chadwick said, citing the pressures on revenue and recruitment that absence from the competition brings.
Barren run: United were shocked to lose three on the bounce, including the defeat by Spurs on New Year's Day
Though United's financial firepower will increase next season as it reaps the benefits of a £340m seven-year shirt sponsorship deal with General Motors, a prolonged barren spell on the field would test the loyalty of far-flung fans who have helped to make the club so strong commercially.
'In Cape Town, Shanghai and Seoul, you have a lot more floating voters. And what they want is success,' Chadwick said.
There are some benefiting from United's struggles. Multimillionaire hedge fund owner Crispin Odey made a £13.5m bet that Manchester United’s poor performance would prove more than just a blip.
Odey took out a 'short position' on Manchester United plc's shares on the New York Stock Exchange, effectively a huge bet on the champions’ decline - which is paying dividends.
Despite victory over Swansea on Saturday evening, the Barclays Premier League champions lie seventh, 10 points behind rivals Manchester City and five points off the Champions League positions.
Paying the price: The Glazer family have seen the value of their investment in United drop
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bonnie7, dudley, United Kingdom, 17 minutes ago
It just seems to keep getting better and better. Ahahahahahahehehehehohohoho
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and a wait pon the UCL fi come round.
Paul Marin -19 is one thing, 20 is a whole other matter. It gets even worse if they win the UCL. *groan*. 
05/18/2011.MU fans naah cough, but all a unuh a vomit?-Lazie 1/11/2015
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