Manchester United Football Club Front office - Escuela Internacional Model United Nations November Crisis Committee
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1 Manchester United Football Club Front office Escuela Internacional Model United Nations November Crisis Committee
2 I. Letter from the Chair (Page 3) II. Structure and Procedure (Page 4) III. Committee Timeline (Page 5) IV. History (Page 6-8) V. Topics and Position Papers (Page 9-11) VI. Roles (Page 12-14) VII. Research (Page 15)
3 I. Letter from the Chair Dear delegates, Welcome to the Escuela Internacional Sampedrana MUN’s November Crisis! My name is Mr. Harris and I will be your chair for the Manchester United Front Office. Your Vice Chair will be Christopher Harris. Manchester United has always been an important aspect of my life. Growing up overseas the teams I was able to follow were limited to big name teams such as Real Madrid, AS Roma, Juventos, Barcelona, AC Milan, Bayern Munich, Liverpool. However, one team stuck out among the powerhouses, Manchester United. Throughout primary and secondary school I witnessed “Fergies Fledglings” go on to win multiple league titles and the Champions league in 1999. Manchester United is beyond a football club and is a symbol for the international game. This was exemplified in a match played three seasons ago when Manchester United became the first major football team to start eleven players from eleven different countries in a game. The fan base of the team is also international, with 350 million fans in every nation on the planet. As an individual who considers himself as an “international citizen” this team is truly symbolic for the ideals and principles I live my life by. The Manchester United Front Office committee will simulate one and a half seasons of the English Premier League starting at January of 2014 ending June of 2015. Your task will be to lead Manchester United towards two successful seasons. It will be your responsibility to come up with policies and plans for the club that supporters could stand by and support. Spending large sums of money is not a viable solution, especially with the recent introduction of “oil” powerhouses such as PSG, Monaco and Manchester City. Instead, as a committee we seek business savvy and innovative methods to compete with these oil rich clubs. Each of you will have an area of the club that you will oversee. These areas may include the likes of scouting, training, marketing, financing and medicine. Although this is a “Manchester United” front office, many of the skills and know-how revolve around “Business”. You are expected to not only understand the team and the sport, but the various business-related transactions revolving around the club and how those transactions can be enhanced. Glory Glory Man United. Sincerely, Nickolas Harris
4 II. Structure and Procedure Our committee will be simulating the front office of the Manchester United football club. The owner of the team Malcolm Glazer will be played by the Chair, Mr. Harris. The Co-Chair, Chris Harris will play the part of Avram “Avi” Glazer, the son of Malcolm Glazer and the Executive Co-Chairman and Director of the club. As the front office of the organization your goal will be to help drive the clubforward through advising the owner through directives passed by the body as a whole. The front office must be ready to advise in all fields pertaining to running a football club. Whether the matter may be dealing with individuals in the club team or dealing with sponsorships with transnational corporations. Each job comes with a specific power and you are permitted to make use of these privileges through taking individual actions and informing the chair through a personal directive. However, with that being said, personal directives have their limits. Ultimately, the committee will be guided through decisions made by the room as a whole.
5 III. Committee Timeline Session 1 The first session will take place between January 1nd to January 31st, 2104. The front office will be in charge of making key mid-season decisions. The main decisions will be revolving around the transfer of players and coaches. However, the front office must also take into consideration the long-run future, budgets and meeting the demands of the fans. Session 2 The second session will take place between February to late April. As the season progresses towards its end the front office must take care of issues in and outside the stadium to help the team progress towards defending its title. Session 3 The third session will start off with the chairs informing delegates how the 2013-14 season concluded. Based upon these results, various challenges and new issues will emerge. The front office will have to make maximum use of its powers to direct the club in the right direction during the summer of 2014. Session 4 The fourth session will take place between September 1 to December 31st, 2014. Session 5 The fifth session will take place between January 1st to January 31st, 2015. Session 6 The final session will take place between February to the end of the season. *The sessions may slide ahead or behind depending on the pace of the committees. The goal is to go through 1.5 seasons throughout the six sessions.
6 IV. History 1878-1945: Newton Heath and James Gibson In 1878, the Newton Heath LYR Football Club was formed by Carriage and Wagon department of the Lancashire and Yorkshire Railway depot at Newton Heath. The club began to play for the top tier league from 1892. Eventually the clubs name was changed in 1902 to “Manchester United”. The club would go on to win its first league title in 1908 and the FA Cup in 1909. In 1910, United made the move to Old Trafford. United would find itself in between division 1 and 2 from 1922 to 1934. The club went through major financial disasters in 1931, where the club would have gone bankrupt if it was not for the investments made by James W. Gibson. During WWII United would participate in the wartime league. 1945-1968: Busby Babes, Munich Disaster and European Glory In October of 1945, Matt Busby was appointed as manager. Busby led the team to win the FA Cup in 1948 and the league in 1952. Busby fielded a very young team in 1956, with the average age of only 22. This team was coined as the “Busby Babes” by the media. Matt Busbys team was involved with an accident that took place in 1958, which claimed the lives of eight players and many more staff of the team. Busby survived, however was greatly injured in the crash. In 1968 Manchester United would go on to become the first English team to win the European Cup, beating Portugals Benfica 4-1 in the finals. This squad contained players such as Bobby Charlton, Dennis Law and George Best. 1968-19: Relegation, Bryan Robson and Ron Atkinson Manchester United was relegated in 1974. The team prior to regulation was continuing to lose key players including George Best, Dennis Law and Bobby Charleton. Ron Atkinson was appointed to manage the team from 1981, where he broke the British record for transfer fees by signing Bryan Robson from West Bromwich Albion. With Robson as manager, United would go on to win the FA cup, but fail to win the title in 1983. In 1986 following a poor previous season and a poor start to 1986-87, Atkinson was let go. 1986-1998 Fergusons Early Years
7 Alex Ferguson, former manager of Aberdeen was appointed as manager for United in 1986. Ferguson’s United would not win any silverware their first three seasons. However, the fourth season United went on to win their first of many trophies under the Ferguson era, winning the 1990 FA Cup. United. The team would go on to participate the following year in the UEFA Cup Winners Cup where they became champions in 1991. From 1992 to1998 United marched on to be one of the dominant forces in England and Europe. United during this period would go on to win the Premier league for 4 seasons between 1992 to1998 with 2 FA Cups acquired in the same period. United acquired big name transfers during this period including Eric Cantona in 1992, Roy Keane in 1993 and Andy Cole in 1995. It was from this time period where “Fergies Fledings” the group of young Manchester United players recruited by Alex Ferguson began to shine. These players included the likes of David Beckham, Nicky Butt, Ryan Giggs, Gary Neville, Paul Scholes and Phil Neville. 1999-2004 The Most Successful Season Ever, Arrival of Rooney and Cristiano Ronaldo The 1998-1999 season was the most successful season in Manchester United history. The club went on to win the “treble” acquiring the FA Cup, Champions League and Leagued title in the same year. After beating Arsenal in injury time during the FA Cup and scoring two goals in injury time to beat Bayern Munich at the Champions league final, United begun to earn its reputation as a “come back team”. In 2000, United went on to be the first team to win three seasons in a row. Success continued, United would go on to win the Premier League in 2000, 2001, and 2003 and go on to win the FA Cup in 2004. In 2003, Uniteds #7, David Beckham was sold to Real Madrid, the same year, 18 year old Cristiano Ronaldo inherits United #7. One season later, United purchased the 19 year old striker Wyane Rooney from Everton for 25.6 million pounds. The two players would go on to become key figures in Uniteds success in the 2000’s.
8 2005-2008 Start of the Glazer Era, Departure of Ronaldo In 2005, the Glazer family became major shareholders for Manchester United. In 2007 United had one of the most successful seasons with the club winning the league and seven players being selected for the PFA Team of the Year. In 2008, the club went on to win the Champions League defeating rivals Chelsea in penalty kicks. The club then went on to win the FIFA Club World Cup defeating South American champions LDU Quito becoming the first English team to win the completion. At the end of the season Cristiano Ronaldo went on to win the FIFA Ballon d’Or before his transfer to the Spanish giants, Real Madrid at a record fee of 80 million pounds. 2009-2013 Rivalry with Manchester City In 2008, rivals Manchester City went under new ownership. Sheikh Mansour bin Zayed Al Nahyan, the owner of the Abu Dhabi United Group took over the club after purchasing the shares owned by Thaksin Shinawatra. After the take over, massive investments have been made by the Emarati, an estimated 1 billion pounds of his personal money has been utilized for the club. The club is now the fifth richest football club in England and eleventh in the world (based on a Deloitte study made in 2010). Since the emergence of Manchester City the two Manchester Clubs have been dominate forces in the Premier league with both teams finishing in the top three positions for the previous three seasons. Although United have been successful domestically, at the European stage the English Champions have failed to lift the Champions League cup since 2008. Although the club had made it to the finals twice, they were eliminated both in 2009 and 2011 by Barcelona FC. 2013-Present Moyes and New Concerns In May of 2013, Alex Ferguson announced his retirement. There were several speculations made about who would take his place, speculations including Jose Mourinho, Jurgen Klopp and Mark Hughes. It was announced shortly after that David Moyes, the manager for Everton at the time would take the Scotsmans place. The Moyes era as of October 12th, 2013 has seen major struggles both on and off the pitch. On the pitch, United currently sits in 9th place between Hull City and Aston Villa with 3 wins, 1 draw and 3 losses.
9 V. Topics and Position Papers David Moyes David Moyes managerial career did not get off to a smooth start, even before the season started. Despite being provided a large sum of money for transfers, the Scotsman only major signing was the 25 year old Belgian, Fellaini for 27.5 million pounds. The transfer was a consolation after the team failed to land big names including Cesc Fabregas, Leighton Baines, Fabio Coentrao, and Daniele De Rossi. The 2013-14 season begun with United having their worst start in 24 years. As of October 12th, United sit in 9th place. Fans are beginning to voice their concern over Moyes capability of handling the role as manager at a “big club” given his lack of trophies won and experience managing top teams. Although it takes time to build a squad, Manchester United fans are used to seeing United at the top of the table. In fact, United have finished in the top every season since 2005. If the poor form continues the front office must take into consideration the possibility of replacing Moyes in the near future, despite his long term contract. Exit of David Gill David Gill, the former chief executive of Manchester United is often largely attributed to the Ferugon era’s success. He was behind some of the most important transfers including, Vidic, Carrick, Robin Van Persie and Rooney. Gill left United at the same period Sir Alex Ferguson left the club and was replaced by Ed Woodward. Many fans believe that the lack of Gills presence hindered United efforts in landing a big name player in the summer of 2013. The pressure is mounting on Gills replacement, Ed Woodward. Despite Woodwards massive contribution towards United the past few decades, his position itself as Executive vice-chairman may come to question depending on the outcome of the upcoming winter and summer transfer windows. Financial Fair Play (FFP) FFP will fully be implemented from 2015. The FFP would mean that a clubs transfer fees and player wages can only come from the clubs income from admissions, TV revenues, advertising, merchandising, and sales. For Manchester United and other Premier League clubs, the news of the Premier League signing a new contract for a lucrative television deal was great news. However, United do have one of the highest payrolls in the Premier League and must begin to strategize ways to pay off players when the new rule sets in. Although some fans believe that UEFA is only threatening teams, in recent years these threats come to action. In the past two years alone, teams such as Rubin Kazan, Athletico Madrid, Maraga and Fenebahce have been fined or banned from tournaments for not following FFP.
10 Manchester United Debt Manchester United is currently in heavy debt. The team owes 390 million pounds, which had been steadily increasing since the Glazer take over in 2005. However, this debt in the past 12 months has dropped, as profits rose 282% with United completing several global sponsorship partnerships, including a shirt deal with Chevrolet. With the financial fair play looming, Manchester United must come up with business strategies that can maximize the profits for the team. The front office must be creative and innovative and think of new ways the club can bring in greater revenue in order to minimize the existing debt. International Brand According to Forbes, Manchester United is the second most valued team in the world at 3.2 billion US dollars. United is behind first place Real Madrid at 3.3 billion US dollars and far ahead of the 2nd and 3rd most valuable teams in England (Arsenal at 945 million US dollars and Manchester City at 651 million US dollars). Manchester United has a global fan base, and it is the front offices responsibility to come up with fiscal policies that can create business models, which take advantage global support. The team currently takes advantage of the summers by touring around the world in order to play in front of the global fan base. With the value of the club continually increasing Manchester United must continue to come up with various club policies to promote their global image. Rooney Issue There was a fall out between Rooney and Sir Alex Ferguson at the end of the 2012-13 season over the controversy of Rooneys transfer request. Sir Alex Ferguson claimed that Rooney had submitted a transfer request, while Rooney denied these allegations. However, this was not the first time Rooney had submitted a transfer request. In 2010, Wayne Rooney handed in a transfer request after the club denied him a raise in his wages. The request was later withdrawn when Rooney was rewarded a new contract of 250,000 pounds a week, making him the highest paid United player in the history of the club. Although the truth to whether or not Rooney handed in a transfer request is unclear, the scandal alone has soured the relationship between Rooney and a section of United fans. Although Rooney ultimately stayed with United after the summer transfer window, talks and negotiations continue with Rooneys agent and the club in regards to his future. When receiving offers for Wayne Rooney the board must take into consideration whether Wayne Rooney is one of the premier leagues top class strikers. Is he worth the 250,000 pounds he receives a year? How can the club convince him to say? What are Rooneys demands?
11 Big Name Signing Each year the so-called “Big Clubs”, such as Real Madrid, Barcelona and Manchester United are looking for key signings to satisfy the fans demands and to elevate the status of the club. In 2013, European rivals made major signings such as, Mario Gotze to Bayern Munich for 32.5 million pounds, Fernandinho to Manchester City for 35 million pounds, Mesut Ozil to Arsenal for 42.5 million pounds, Neymar to Barcelona for 50 million pounds, Edinson Cavani to PSG for 57 million pounds and Gareth Bale to Real Madrid for 88 million pounds. United during this period only managed to sign Felaini from Everton. As a result, fans were unhappy after the summer transfer window and the board is now prepared to invest in a major signings during the winter transfer window. Position Paper The position paper should be a 3-5 paragraph essay addressing solutions to the topics above. Due to the fact that there are a variety of topics and issues, it is recommended that delegates subjectively decide which topics they would prefer to prioritize. Additionally, delegates should take into consideration that certain issues will be prioritized based upon the session taking place and the chairs decisions. For example, in the first session the issue of signing a new player during the winter transfer window would be one of the main priorities. Although the committee will be in charge of both the business side and strategic elements of team building, the committee will most likely focus on transfers. Delegates will be expected to be able to contribute to discussion in regards to both how to run a business, but also create a winning team.
12 VI. Roles Our committee will be simulating the front office of the Manchester United football club. The owner of the team Malcolm Glazer will be simulated by the chair. The chair has modified the front office by adding fictional characters who are not part of the front office in real life in order to create a more diverse and lively front office group. Ed Woodward Executive vice-chairman Woodward has major influence over the transfer activities of the club working directly alongside with manager David Moyes. The former PricewaterhouseCoopers accountant has been under great pressure after failing to contribute to landing a big name signing during the summer of 2013. Woodward has a background of working in the commercial and media operations in Manchester United, and was successful in signing various sponsorship deals for the club. Woodward has the most influence over transfers, however, this also means Woodward will be the one to burden responsibility for failed transfer windows. Richard Arnold Commercial Director and Director Arnold is responsible for the management and the growth of Uniteds sponsorships, retail, and apparel. He is heavily involved with the marketing and licensing of the products and was nominated in 2011 for SportBusiness Internationals Sports innovator of the year. Arnold has heavy ties with the sponsors and is well connected with the corporate world. Arnold has the powers to independently negotiate with corporate sponsors for new deals or extensions for existing sponsor contracts. Michael Bolingbroke Chief Operating Office (COO) Bolingbroke is responsible for the clubs ticketing, hospitality, property management and corporate services including finance. As COO, Bolingbroke oversees the day to day operations of the club and has major influence over stadium related decisions such as stadium reformations, ticket prices and deals, and
13 Phil Neville Director of Player Personnel (Fiction) Phil Neville is a former Manchester United and Everton footballer. He returned back to Manchester United the summer of 2013 to serve as the director of player personnel. Neville was the captain for Everton under David Moyes prior to his departure to Manchester United the summer of 2013. Neville is a rookie in the front office, but his ample knowledge of the premier league, and his past experience of being the captain for Moyes gives him major influence over the manager and players. As director of player personnel, Neville has the unique role of being able to interact directly with players on a daily basis. He can help the front office move forward through directly contacting players. Sir Alex Ferguson Special Adviser to Club (Fiction) Sir Alex Ferguson, the former manager for Manchester United has been part of the Manchester United family for over 26 years. He will contribute to the club by providing advice in how to run the club at all levels, ranging from day to day operations, transfers to sponsorships. Sir Alex Ferguson has a great presence in the club and his public statements will be taken seriously by the media and fans. However, as a rookie on the board, Sir Alex Ferguson does not have specific powers that many of the other board members possess. Instead, Sir Alex will try to influence the club through using his political power and putting pressure on the club through media. Joey Whitehead (Fiction) Director of Player Development (Fiction) A former Manchester United player, Whitehead was only able to earn 34 caps and 2 goals during his career as a player. However, as a coach Whitehead has had a successful run with the club. After completing 5 years as the youth coach at Derby County, Whitehead joined United as a coach for the youth squad from 1990 to 1998. He joined the front office in 1998 as the director of player development. Today, he oversees the development of players in the Academy. Whitehead has the ability to recommend the promotion of youth players and direction for youth development. United currently boast the #1 academy in England and #5 in the world and many attribute this success to Whiteheads work.
14 Jeffery Scott (Fiction) President for Corporate Relations (Fiction) Jefferey Scott is the former COO for Nike who is currently in charge of maintaining the clubs relations with corporate sponsors. At age 19, Scott graduated Stanford University and joined consulting firm Bain Consulting. After completing several years at Bain, Scott moved on to Harvard Buisness school where he earned his MBA in 2007. He joined the front office in the spring of 2012 as one of the youngest members of the board. With European footballer seeing the emergence of oil rich owners purchasing teams across Europe, Manchester United is attempting to hold on to its team value through innovative and creative ideas. Scott is the “golden child” of the group and is expected to come up with innovative business ideas. Thomas Stern (Fiction) Marketing and Brand Development (Fiction) Stern is in charge of the keeping the prestigious United brand popular internationally. He is in charge of the clubs marketing strategy, and works closely with existing sponsors in order to expand the United brand to its maximum capacity. Nicholas Swanson (Fiction) Adviser (Fiction) Nicholas Swanson serves on the board as a general adviser. Michael McGeedy (Fiction) Adviser (Fiction) Nicholas Swanson serves on the board as a general adviser. Emily Brown (Fiction) Adviser (Fiction) Emily Brown serves on the board as a general adviser.
15 VII. Research Research Issues: 1. Manchester United’s global image and corporate values 2. The effects of the Glazer take over 3. Manchester United’s debt 4. Manchester United’s stock performance 5. The effects of Financial Fair Play (FFP) 6. The business strategy of the Manchester United Football Club 7. Possible players to transfer out of Manchester United 8. Possible players to transfer in to Manchester United 9. Salary caps for Manchester United (and for other teams in the English Premier League) 10. How to deal with Wayne Rooney the transfer window in 2013/2014 Websites: http://www.manutd.com/en/Club/Club-Contacts.aspx http://ir.manutd.com/phoenix.zhtml?c=133303&p=irol-irhome http://www.economist.com/topics/manchester-united http://www.transfermarkt.co.uk/en/manchester-united/fakten/verein_985.html http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=879581 http://bsr.london.edu/lbs-article/644/index.html
16 United’s flag is deepest red It shrouded all our Munich dead Before their limbs grew stiff and cold Their heart’s blood dyed it’s ev’ry fold Then raise United’s banner high Beneath it’s shade we’ll live and die So keep the faith and never fear We’ll keep the Red Flag flying here We’ll never die, we’ll never die We’ll never die, we’ll never die We’ll keep the Red flag flying high ‘Cos Man United will never die
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