The Commercial Benefits of Jose Mourinho

United Boss Jose Mourinho

Manchester United have appointed Jose Mourinho as their new manager on a three-year deal, and reaction from the supporters and pundits has been one of positivity. The Portuguese boss has won more than a league title in each of his last five jobs at Porto, Chelsea, Inter Milan, Real Madrid and again with Chelsea. So, he arrives at Old Trafford almost guaranteeing instant success.

Mourinho is not only an outstanding coach who brings silverware, but he is also a big draw for the media that could boost United’s commercial brand. United’s value on the stock exchange will rise considerably following the 53-year-old’s arrival. Prior to the announcement, United’s stock was said to have increased by 1.3% in the first hour of trade.

Louis van Gaal’s tenure at the club wiped off £1bn in value with a lack of European football for one of the last two seasons. A lack of Champions League football in the 2016-17 season saw United’s stock diminish from their poor results on the pitch. However, if Mourinho can get the club back into the top European competitions, their stock price will continue to rise.

According to Forbes, United are still the third richest club in the world with a total net worth of US$3.3bn. Their commercial revenue (£1.35bn) is their biggest source of income. That comes from sponsorship, retail, merchandising, apparel, product licensing, and mobile content. If Mourinho leads the club to a quick success, club’s draw will only get bigger as their name starts to flood the headlines.

Despite poor league finishes costing the club in value, the work undertaken by the hierarchy has led to their income being better than ever. It means United’s new manager can be given a lucrative transfer kitty to strengthen his squad, which in turn should mean winning trophies. United have won the FA Cup in their third post Sir Alex Ferguson season, so it’s hardly surprising that their stock price would fall.

It was the reason why news of Ferguson’s plans to return at the end of the 2012-13 season led to such a dramatic drop in stock price, as eventual failure was predicted from his successors. Now United have a manager who’s guaranteed a title per season in the last decade. It suggests the club will be stronger than ever financially.

Manchester United had to promise they could bounce back in the stock market after a failed spell under Van Gaal, and that certainly had a bearing in their hunt for the former Chelsea manager. Mourinho has won titles in two stints in England at Chelsea, apart from winning  Portuguese Primeira Liga, Italian Serie A, and La Liga titles with Porto, Inter, and Real Madrid. With the Portuguese tactician at the helm of affairs, investors will be much more confident while investing United as they can expect the share value to rise from here on.

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