Will Brand United take a hit without Fergie?

What a week it has been for English football. First came the announcement of Sir Alex Ferguson’s retirement, which many commentators have said has been the biggest breaking story for British sport since London was awarded the 2012 Olympics in 2005. Then on Saturday, Wigan kept the romance of the FA Cup alive with a famous win over Manchester City.

While football writers from all over the world have been working overtime in search of the right turn of phrase to describe the most enduring coach in the game, there is also a lingering question in the minds of many. There is no mistaking the credentials of his successor David Moyes, but will brand Manchester United take a hit following the departure of Sir Alex?

It’s one thing to measure the larger-than-life Scot’s contribution in terms of the 38 trophies he has added to the cabinet at the Old Trafford, but his role in United developing into a global brand has also been a remarkable one. Over the last 26 years in the job, Sir Alex had been witness to the rapid commercialisation of the game and the boom period of the Premier League in general — where his club’s on-field success has swelled their revenue coffers.

A study published by Brand Finance — a leading brand valuation consultancy — reveals that United are the most valuable football club in the world, worth more than $850 million, with Bayern Munich in second spot. The prize money is only one source of the revenue stream, while the rest comes from shares (they are listed in both London and New York), brand-building, TV revenues — the list goes on.

If millions of football buffs were left wondering how the news of Sir Alex’s retirement broke so precisely and swiftly in what was early in the morning in the UK, they would have done well to look at the rule books of the New York Stock Exchange (NYSE). As a company whose stocks have been listed in the NYSE since last year, United had to come out with a categorical response to the buzz going around. The rules state that if any rumours or unusual market activity indicate that information on impending developments have leaked out, then a “frank and explicit” statement from the company is required. Hence United were quick to confirm the retirement news prior to the US stock market opening at 2.30pm UK time last Wednesday.

According to media reports, the prospectus prepared by United and in roadshows conducted by the company’s brokers last year, the possibility of Sir Alex retiring in near future was repeatedly mentioned. The prospectus also made an allowance for ‘future risks’ after his departure – underlining the status that the legendary coach enjoyed as a guaranteer of the Red Devils’ success.

It’s hard to imagine which other coach in the history of any sport has been so instrumental in propping up a powerful brand, and for such a long period. Surely this explains how big the shoes are which Mr David Moyes will be stepping into next season.