145 years ago, a few men would change the future of football forever…
In 1878, workers at the Newton Heath railway yard, came together to create a football team to play against other departments of the LYR (Lancashire and Yorkshire Railway) and other railway companies. It was called Newton Heath LYR Football Club.
The inception of the Football League came just 10 years later, but Newton Heath only joined this in 1892, due to worries they wouldn’t be good enough.
They also became independent of the railway company in 1892, so dropped the ‘LYR’ out of their name.
10 years later and the club had built up serious debts.
A winding-up order had been served and this famous story could so easily have been over.
But captain Harry Stafford and local businessman John Henry Davies would have a thing or two to say first.
Here's the amazing story on how a dog saved Manchester United from bankruptcy 122 years ago.
[1-3] pic.twitter.com/9NJDDcU21y
— Paul Manc Bald and Bred (@MufcWonItAll2) April 26, 2024
What happened next is something of a legend.
In an attempt to raise finance, a fundraising event was held.
At this event, Stafford’s dog wandered off and was found by Davies.
This huge coincidence led to Davies inheriting a dog and in return, investing in the club.
Stafford also found three other businessmen to support the team financially.
John Henry Davies
As a result of his investment, Davies was promised some power in decision-making and was made club chairman.
He immediately began making significant reforms.
In 1902, he imposed the decision to change Newton Heath’s name, which led to the birth of Manchester United Football Club.
He changed the club’s colours from green and gold, to red white and black.
He also upgraded United’s stadium Bank Street, to fit more supporters.
In 1903, he brought in Ernest Mangall as club secretary.
By 1906, Mangall guided United to promotion into the First Division.
Two years later and United had won the league and the FA Cup the following year.
This was the first silverware United had ever won.
In 1910, Davies decided to fund a move to a new stadium, as Bank Street was deemed not fit for a side winning the First Division.
Little did he know, that 114 years later, United would still be playing at this iconic football ground.
Old Trafford was built, and history was being made.
Old Trafford opened 109 years ago today – Architect: Archibald Leitch.
Manchester United Chairman and owner John Henry Davies poses proudly with Directors and ground committee members, 19 February 1910. (Photo: MUFC) pic.twitter.com/tqDQEhsB1y
— A Football Archive* (@FootballArchive) February 19, 2019
In 1911, another league title was won, but in 1912, Mangall moved to local rivals Manchester City.
His last game came in a defeat to the Sky Blues themselves.
United struggled for many years after this.
The outbreak of the First World War saw the Football League suspended for four years.
When it returned, United found it difficult to find a manager to live up to Mangall’s success.
They were relegated in the 1921/22 season.
But after three years in the Second Division, United got promoted again.
In 1927 however, Davies died.
This left United vulnerable financially.
James W Gibson
By 1931, United were on the verge of bankruptcy.
The Red Devils had no money to pay players, with the attendance dwindling due to consistently bad results.
But James Gibson stepped in to become chairman.
He invested £30,000.
After years of yoyoing between the First and Second Division, Gibson was the man to hire Sir Matt Busby.
He was also the man to create the first youth team in the country, paving the way for the creation of the iconic ‘Busby Babes’ and later the famous ‘Class of 92’.
After Old Trafford was hit by bombs in WW2, he helped fund the rebuilding of the iconic stadium, while campaigning for government funding for other clubs affected by the war.
He also purchased a training ground that would go on to be known as ‘The Cliff’, which was United’s facility for the next 60 years after that.
Gibson died a year before Busby’s men won their first league title. He did see United win the FA Cup in 1948 though.
Without James W Gibson, this club simply wouldn’t exist.
Harold Hardman
He formally played for United in 1908/09, making just four appearances.
In 1951 after the death of Gibson, Harold Hardman became chairman.
🇾🇪 Harold Hardman Chairman of Manchester United for about 14 years , as well as playing a couple of games for United in his youth , he is also the subject of a excellent book by @CarlAbbott1 @RoyMBE 🇾🇪 pic.twitter.com/7xNDg1E1Xy
— YesterdaysStars (@YesterdaysStars) March 28, 2021
He was in charge for 14 years until he died in 1965.
During this time, he oversaw United’s success under Busby, before the tragedy of the Munich Air Disaster.
But he did see the resurgence under the Scottish manager, with their 1963 FA Cup win and then United’s first league title since the disaster in 1964/65.
Louis Edwards
Coming in at a fortunate time, Louis Edwards was able to oversee Busby’s success in the late 60s, eventually winning the fabled European Cup. His rise to prominence at United was far from ordinary.
A week before the Munich Air Disaster, a club director called George Whittaker died.
Subsequently, a new club director was needed.
Willie Satinoff, a cotton trader, was the obvious choice.
He was a ‘fanatical’ supporter of United, following the side home and away.
Satinoff was even a good friend of Busby’s. He would travel with the squad on all their European journeys.
Tragically, this led to his death, as he was one of the 23 to lose their lives in the Munich Air Disaster.
Subsequently, United still needed a new director and Edwards was put on the board just the day after the disaster.
He looked to gain further control, so quickly bought up the shares of anyone who would sell to him. This gave him a considerable shareholding, making him powerful at the club.
By 1965, upon the death of Hardman, Edwards had built up a 50% stake in the club.
He subsequently took over as chairman.
Edwards began improving Old Trafford by redeveloping the ‘United Road Stand’, with a cantilever roof and the first executive boxes in British football.
Old Trafford, after the addition of the cantilever stand (1965) #MUFC pic.twitter.com/0wgAZ8OREn
— 🇾🇪 (@ManUtdHeritage) July 3, 2022
He appointed his son Martin to the board in 1970.
However, like their form on the pitch, his reputation at United also soured.
He was alleged to have sold ‘condemned meat’ to schools.
Then investigative journalists from Granada Television began looking into his business dealings.
This was as a part of a national broadcast of the ‘World in Action’ series.
It discussed his unusually quick gain of huge shareholding at United.
The police were going to investigate the programme’s allegations, but Edwards died just four weeks after it aired.
The investigations were dropped and his son Martin became chairman.
Martin Edwards
He was a divisive figure.
Martin Edwards was hugely influential in providing the funds for Sir Alex Ferguson’s success in the 90s and early noughties, but like his father, he was also plagued by controversy with multiple public scandals.
Soon after becoming chairman, he allowed Ron Atkinson to sign future club legend Bryan Robson for a national record fee of £1.5m back in 1981. This record wasn’t broken for another six years.
This willingness to spend also helped Ferguson (the next manager after Atkinson) to bring in players like Roy Keane, Andy Cole, Jaap Stam and Dwight Yorke. Such signings were huge catalysts to United’s domestic domination in the 90s.
Most famously, Edwards is renowned for his faith in Ferguson. He was the one who initially stuck by the Scottish manager, through the bleakest times, despite fans calling for the sack.
🚨 Fergie's Crucial FA Cup Win: The Turning Point for Sir Alex Ferguson at Man United 🏆⚽️
Martin Edwards, former chairman of Manchester United, unveils the untold story behind Sir Alex Ferguson's reign in a revealing interview.
✅️ Edwards, reflecting on the uncertain times,… pic.twitter.com/JvINb62XPR
— United 4Fans (@United4fans) December 15, 2023
His loyalty would certainly pay off with United winning eight league titles, four FA Cups and a European Cup from 1992-2002.
However, Edwards was unpopular amongst fans.
This came for a variety of reasons.
One is his decision to sell off his equity in United to earn money. He would sell to ‘city Institutions’ which risked giving a lot of power to those with questionable intentions for the club.
Another reason was his attempts to sell the club. He’d rejected a £10m bid in 1984 from Robert Maxwell but accepted a £20m bid from Michael Knighton in 1989. This fell through as Knighton couldn’t afford to buy it. But in 1999, he accepted a £623m bid from BSkyB to take over United. This was later blocked by the Monopolies and Mergers Commission, but fans were unhappy that he’d consider selling to Rupert Murdoch.
What further tarnished his reputation was allegations claiming he was involved in several affairs and used prostitutes while away on club business. He was also accused of a ‘peeping tom incident’ when he allegedly looked under a toilet cubicle, to the distress of a 40-year-old woman.
Edwards initially stepped down as chief executive in 2000 to become a non-executive director at the club but then retired completely in 2002.
There is no confirmation that any of these allegations had an impact on these decisions, but it could’ve been a big factor.
Peter Kenyon took up the role of chief executive following Edwards’ departure in 2000.
John Magnier and JP McManus
They were two Irish businessmen who were part of the Coolmore racing conglomerate but also major shareholders at United.
While not owners, they were incredibly influential due to their shareholding.
Their decision to sell their shares came down to a horse. Yes, a horse.
A champion racehorse called ‘Rock of Gibraltar’.
Ferguson felt that he had half the rights to the horse after discussions with the pair.
They disagreed.
The horse was reportedly worth around £50m.
It was taken to the Irish high court.
The friendship between Ferguson and the shareholders was gone. Tensions were at an all-time high. There was even talk about the possibility that Ferguson would leave.
In the meantime, Magnier and McManus bought up more shares at United.
By February 2004 they owned 28.89% of the club.
US Sports entrepreneur Malcolm Glazer also began buying shares, seeing this fallout as a potential opportunity for him.
By October 2003 he nearly had 10% shareholding.
A year later he had 30% of the club.
With the huge fallout between Ferguson and the Irish businessmen, Magnier and McManus were happy to sell their stake. And that they did.
In the spring of 2005, the blossom of United’s future was gone.
In a £790m buyout, Glazer bought up the Irish racing tycoon’s stakes and had more than 70% ownership of the club.
By the end of June 2005, Glazer owned 98% of the club, which meant he had acquired enough shares to force other investors to sell him the final 2%.
He had full control of the club.
The Glazer Family
Purchasing the club through a leveraged buyout, Glazer was happy to put £550m worth of debt onto the club.
In this buyout, Glazer’s six children, Avram, Joel, Bryan, Kevin, Darcie and Edward, all sat on the board.
The Premier League has since voted to bring in new legislation to cap any sort of leveraged buyout at 65% of the club’s value. This was basically to prevent a Glazer-type ownership.
Since the buyout, the issue around the debt is no closer to being resolved.
With the club having to pay huge interest on the loan and the Glazers having no desire to invest, it remains at around £506.5m.
It has since cost United over £1bn to service the debt placed on the club.
However, United would have success under these owners, winning another five Premier League titles, the Champions League, three League Cups and the Club World Cup before Ferguson retired in 2013. Trophies haven’t come so easy since then though.
But this success wasn’t enough for fans.
There was huge opposition to the ownership.
In June 2005, for Joel, Avram and Bryan’s first visits to Old Trafford, they had to be ‘smuggled down the players tunnel and out of the stadium in a police van’. This was due to opposition from fans in the stadium.
One thing the Glazer family did succeed in was their ability to make United a commercial giant.
Through big sponsorship deals with AIG and Chevrolet, United’s commercial revenue grew from £44m in 2005 to over £300m in 2023. This came through hiring Ed Woodward a banker in 2013 as chief executive to replace David Gill. Gill retired with Ferguson. Woodward’s focus was finance before football, effectively turning the club into a business before a football team.
This approach pretty much summed up United’s rapid decline on the pitch.
In 2010 the slogan ‘Love United Hate Glazer (LUHG) was created. This was in protest to an announcement that the debt was being refinanced. The green and gold colours of Newton Heath (the former name of Manchester United) were used as a symbol of protest at games.
David Beckham puts on a Green & Gold scarf after United beat AC Milan 4-0 whilst Old Trafford protests against the Glazers (2010) #GlazersOut pic.twitter.com/Pub5V3QD7W
— 🇾🇪 (@ManUtdHeritage) August 16, 2022
Such protests did lead to interest from a group called the ‘Red Knights’, for a potential buyout. However, this never materialised as the Glazers did not want to sell.
In August 2012, the Glazer’s popularity took a further tumble after listing United on the New York Stock Exchange. It was hoped that the money gained from selling shares would be used to pay off the debt. But in reality, it was used to further lace the Glazer family’s pockets.
Now you might think that the Glazers selling shares would be a good thing as it could decrease power.
Unfortunately not.
The structure of the club meant the Glazer’s class B shares would have 10x the voting rights of class A shares, so they could make money but didn’t lose power.
In addition, the facilities have been left to rot with Old Trafford a shade of its former glory. This has led to humiliating flooding on matchdays.
The Old Trafford waterfall 😳 pic.twitter.com/2Xibzh200l
— Sky Sports Premier League (@SkySportsPL) May 12, 2024
United’s training ground Carrington has also not improved, with Cristiano Ronaldo shocked at the lack of change in the decade he was away.
In 2015, it was announced that the six Glazer children would be paid more than £15m each in dividends.
This was unheard of in Premier League football.
The club had been milked dry to the point where United was forced to use a cash-revolving facility to pay for transfers. Effectively a ‘credit card’ but yet another form of debt that would need to be paid off.
Despite all this, Ferguson was never that critical of the Americans.
He said: “They’ve done the job well. I’ve never been refused when I’ve asked for money for a player,”
Yet after the sale of Cristiano Ronaldo for £80m, they brought in Antonio Valencia, Michael Owen, Gabriel Obertan and Mame Biran Diouf…
In 2021, the Glazer’s open support of the European Super League sparked new protests. Avram Glazer was made co-chairman of the competition. United felt their voice had to be heard so ahead of United’s home fixture against Liverpool in the Premier League, fans forced their way onto the pitch and got the game postponed. The first time in the history of the competition.
It was a huge statement of intent against the Super League and the Glazer family.
Ed Woodward announced his intention to resign as a result of this.
In a panic, the Glazer family promised more open communication with fans and improvement of the stadium. Both of which haven’t properly come.
Then in November 2022, United announced they were open to strategic alternatives. This wasn’t an outright decision to sell the club, but to look at all possibilities.
Over 12 months passed and eventually, Sir Jim Ratcliffe and his INEOS team became co-owners, purchasing a 27.7% stake for £1.25bn.
Sir Jim Ratcliffe and INEOS
After beating his competitor Qatari banker Sheikh Jassim in the United sale race, Ratcliffe finally had his hands on United. Or well, some of it.
Having initially wanted majority ownership, gaining just 27.7% of the club will be a disappointment.
However, Ratcliffe made sure to have full control of the footballing decisions in this stake.
Subsequently, he’s been able to make quick changes. He’s brought in City Football Group, chief football operations officer Omar Berrada, Southampton’s director of football Jason Wilcox and Newcastle’s sporting director Dan Ashworth after a compensation compromise was reached.
Such swift changes mark a complete contrast in strategy to that of the Glazer family during their tenure.
Ratcliffe has looked to put skilled people in each department.
He’s also created a task force to begin deciding whether to redevelop Old Trafford or knock it down while investing in Carrington so it can finally be improved.
INEOS is bringing a breath of fresh air to the club but while the Glazers are still majority owners, the doubts will always remain…