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Six Alex Ferguson: Managing Manchester United

Sir Alex Ferguson, the most successful manager in British football history, stepped out of his
office at Manchester United's Carrington training complex in July 2012. It was the first day of
training for his team for the 2012-2013 season, his record-breaking 26th as manager of one of the
world's most decorated professional football clubs (see Exhibit 1) and one of sports most
powerful organizations. Ferguson won practically every club honor during his tenure as manager
of Manchester United. He took over at United at a time when the club was at its lowest point
ever, having suffered a shocking fall from grace and not won an English league title in nearly
twenty years. Ferguson had defeated several major challengers to United over the years,
including knocking close rival Liverpool FC off its perch as the club with the most English
league titles, successfully battling the fluid style of play that had brought London-based Arsenal
FC three titles in the late 1990s and early 2000s, and triumphing over the hundreds of millions of
dollars invested in Chelsea FC by Russian billionaire owner Roman Abramovich. The latest
threat could be found closer to home. Since Manchester City, the same-town opponents Ferguson
once memorably referred to as United's "noisy neighbors," changed ownership, the club has
invested record sums in new players. The 2011–2012 title battle was the closest ever, with City
taking the crown in the season's final game.

The Game and Business of Football

The English Premier League

The English Premier League (EPL) was England's premier league, with 20 teams. They each
played each other twice in a single season, once at home and once away. A win earned three
points, while a tie earned one. At the end of the season, the team with the most points (or, in the
case of a tie, the team with the most favorable difference between goals scored and incurred)
would win the league, while the three teams with the fewest points were relegated to the lower
division (and replaced by the three promoted teams from that division). EPL and lower-division
clubs also competed annually in a knockout system for the Football League Cup (often known as
the 'League Cup') and the more famous FA Cup.

The EPL was the first league to capitalize on football's globalization, and it still has the largest
revenue of any European league. It had experienced unprecedented growth, fueled by rising
broadcast income. The deal to broadcast the 2010–2013 seasons was worth $5.4 billion, a
significant rise over the $480 million five-year pact inked nearly two decades ago. This
expansion allowed EPL clubs to bring in some of the world's best players and improve the in-
stadium experience. With an estimated 1.5 billion fans by 2012, the EPL was football's most
popular product.

The Champions League

Although England had the most popular overall league, the Union of European Football
Associations (UEFA) Champions League was the most lucrative tournament in the game. The
Champions League, despite its name, was a knockout event for Europe's greatest clubs, who
could qualify for it each year by finishing in one of the top positions in their domestic league. 6
At the start of the tournament, a seeded round robin phase was utilized to determine which teams
would advance to the knockout stage.

The final of the 2012 Champions League attracted 300 million viewers, almost quadrupling the
number that watched the Super Bowl of American football. 7 The event was exceptionally
profitable for its competitors thanks to sponsorship and revenue from the sale of TV rights. For
instance, Manchester United earned $72 million in prize money alone for placing second in the
Champions League during the 2010–2011 campaign, without including the sizeable additional
stadium-based and commercial revenues. The financial rewards from the Champions League
offered Europe's top teams a great advantage in luring the best players in the world, helping them
maintain their on-field performance even in the absence of transfer spending restrictions.

The Role of The Football Manager

Football club managers, also known as coaches or trainers, have varying roles and
responsibilities depending on the club. Generally, they are responsible for overseeing the first
team, consisting of eligible players for matches, as well as assistant coaches, doctors,
physiotherapists, and support staff. They make decisions regarding training, player selection,
tactics, and deliver team talks before, during, and after games. Managers also play a role in
organizing the club, including coaching staff, youth development, and scouting. Sir Alex
Ferguson had significant control at Manchester United due to his long tenure and achievements.
He was the ultimate decision-maker on most football-related matters. The relationship between
Ferguson and chief executive officer David Gill was strong, based on respect and fair
disagreements. Managers also represent the club in football-related matters to the media, but are
careful not to disclose sensitive information such as tactics. While managers can provide
recommendations on player transfers, final decisions usually involve approval from higher-
ranking officials. Managers often have involvement in transfers, from working with scouting
staff to interacting with potential players.

In the case of Manchester United, the final approval on transfers was held by the club's owners,
the US-based Glazer family. Sir Alex Ferguson acknowledged that the Glazers had the ultimate
decision-making authority and described them as low-key and generally supportive. He
contrasted their more reserved approach to celebrating success compared to his experience with
Rangers, where directors would celebrate exuberantly. Managing a top European club, like
Manchester United, was a highly demanding job. If the team's performance on the field was
disappointing, managers often faced criticism and could even be dismissed by the club's
leadership. The average tenure of coaches in Europe was relatively short, making Ferguson's
long and successful tenure even more remarkable. He noted that frequent changes in managers at
English clubs could lead to player power in the dressing room, which he considered dangerous.
Ferguson believed that ultimately, football management revolved around the players, with
managers thinking they were better players and players thinking they were better managers.
Sir Alex Ferguson: British Football’s Most Successful Manager

Early Life and Playing Career

Sir Alex Ferguson was born on December 31, 1941, in Govan, a working-class area of Glasgow,
Scotland. His father worked in the shipbuilding industry, which was central to the local
economy. From a young age, Ferguson displayed a passion and talent for football, often playing
on the streets with his brother Martin and attending Celtic FC games with his father. His father
actively supported their football development and gave them advice on how to improve. Even as
a young player, Ferguson exhibited a strong determination to win. Ferguson began his
professional career at Queen's Park, a second-division Scottish club, at the age of 16. He later
moved to St. Johnstone in the first division but initially struggled to make a significant impact.
However, after a standout performance and hat-trick against Rangers FC, his childhood club and
Scotland's top team at the time, he earned a transfer to Dunfermline Athletic, where he set goal-
scoring records. Ferguson's dream moved to Rangers turned out to be challenging due to a
falling-out with a new manager, and he left the club after three years with only a Scottish Cup
Final runner-up medal. Despite the adversity, Ferguson developed a strong sense of
determination and vowed never to give up. Ferguson concluded his playing career at Falkirk and
Ayr United, smaller clubs. Although he never reached the highest level of the game, he was a
prolific goal scorer throughout his playing career. When asked if his experience as a striker
helped him as a manager, Ferguson humorously mentioned Wayne Rooney, a star striker, who
would dismiss the significance of his playing career in Scotland. However, Ferguson emphasized
that his time at a big club like Rangers exposed him to high standards, such as having a new strip
for every game and warm training gear even in freezing weather.

Machester United Before Ferguson

Sir Alex Ferguson began his managerial career in 1974 at East Stirlingshire FC, a small club in
Falkirk, Scotland, at the age of 32. He spent a brief period of 117 days at the club before
accepting an offer from a larger club, St. Mirren FC, where he remained for four years. During
his time at St. Mirren, Ferguson had significant control over both the football and administrative
aspects of the club. In his third year, he achieved promotion to the Scottish Premier Division
with a young team he had assembled, focusing on building not just a team but a club as a whole.
However, a disagreement with the club's new chairman led to Ferguson's dismissal, which served
as a significant lesson for him. He realized that he was not immune to being fired and vowed to
avoid a similar situation in the future. Soon after his departure from St. Mirren, Ferguson was
appointed as the manager of Aberdeen FC, a stronger club from Scotland's North East. He
formed a strong bond with the club's chairman, Dick Donald. Ferguson's tenure at Aberdeen
would prove to be the most successful in the club's history and make a significant impact on
Scottish football. Under Ferguson's guidance, Aberdeen achieved remarkable success, winning
three Premier Division titles, four Scottish FA Cups, one Scottish League Cup, and the European
Cup Winners Cup. Along the way, they defeated European powerhouses Bayern Munich and
Real Madrid. In recognition of his achievements, Ferguson was appointed an Officer of the
Order of the British Empire (OBE) by the Queen of England.
In the summer of 1995, Alex Ferguson surprised many supporters by allowing the departure of
three senior players without making any major signings to replace them. Instead, he put his faith
in young players from Manchester United's youth development program. On the opening day of
the season, six out of the thirteen players used were products of the club's youth system,
including David Beckham, Gary Neville, and Paul Scholes. Despite losing their first match to
Aston Villa, the young players retained their places and went on to win their next five matches,
ultimately securing back-to-back English Premier League (EPL) titles.

Recognizing the need to strengthen the squad further in the face of increased competition,
Ferguson made significant signings the following year. He spent $46 million on three players,
including Dutch defender Jaap Stam and Trinidad & Tobago forward Dwight Yorke. Yorke
formed a lethal partnership with England international Andy Cole, contributing to United's
success in winning another EPL title and FA Cup. Between 1995 and 2001, Manchester United
won the EPL title five times out of six, establishing their dominance in English football.
However, Ferguson aimed for an even greater prize—the UEFA Champions League. In 1999,
after eight attempts, United reached the final of the Champions League, facing German
champions Bayern Munich. Bayern took the lead early in the match, putting United in a difficult
position. At halftime, Ferguson delivered an inspiring speech to his players, reminding them of
the significance of the moment and the consequences of defeat. As the match entered injury time
with Bayern still in the lead, Ferguson made two attacking substitutions. In an astonishing turn of
events, Teddy Sheringham scored the equalizing goal from a David Beckham corner, and just a
minute later, Ole Gunnar Solskjaer netted the winner from another Beckham corner. In a span of
107 seconds, United snatched victory from the jaws of defeat, becoming the first team from a
major European league to achieve the "treble" of winning the European Cup, domestic league,
and domestic cup in a single season. For his role in Manchester United's historic achievement,
Ferguson was knighted and became Sir Alex Ferguson. The triumph in the Champions League
final was a crowning moment in his managerial career and cemented his status as one of the
greatest football managers of all time.

After initially announcing his retirement at the end of the 2001-2002 season, Alex Ferguson soon
realized his mistake and decided to continue as Manchester United's manager. He embarked on
the task of rejuvenating his team and making necessary changes. One of the notable decisions
Ferguson made was selling Dutch defender Jaap Stam in 2001, a move he later admitted was a
major mistake. Despite Stam's previous Achilles injury affecting his form, Ferguson regretted
letting him go as Stam continued to perform at the top level for several more years. In 2003,
Ferguson also sold David Beckham, a player he had nurtured from the youth ranks to become a
key member of the first team. Ferguson believed it was time for Beckham to seek new
challenges, and Real Madrid acquired him for a significant fee of $46 million. Ferguson
reinvested the funds from these sales by making substantial signings. In 2003, he secured the
services of Portuguese winger Cristiano Ronaldo and in 2004, he brought in English striker
Wayne Rooney, making him the world's most expensive teenager at the time. While Ronaldo and
Rooney would later become dominant forces in the English Premier League (EPL), it took some
time for them to fully develop their potential. During this period, Manchester United experienced
three seasons without winning the league title, with Arsenal and Chelsea claiming those honors
instead. Some critics began suggesting that Ferguson's best days were behind him. More player
departures followed, including the termination of captain Roy Keane's contract after he publicly
criticized his teammates, and the sale of leading goal-scorer Ruud van Nistelrooy to Real
Madrid. Despite these challenges, Manchester United bounced back and regained their winning
form. They secured the league title again after a three-year gap and repeated the feat the
following year. In a remarkable display, United defeated Chelsea on penalties in the final game
of the season to win the UEFA Champions League, marking their second triumph in the
competition under Ferguson's leadership. Cristiano Ronaldo's performances earned him the FIFA
Ballon d'Or, the award for the world's best player. The next season, Manchester United made
history by becoming the first team to win three consecutive English titles on two separate
occasions. This accomplishment further solidified Ferguson's status as one of Europe's most
prominent managers. The team's success was a testament to Ferguson's ability to rebuild and
maintain a winning side, even in the face of significant player departures.

In 2010, Manchester United faced the departure of one of their most devastating attackers,
Cristiano Ronaldo, who was sold to Real Madrid for a world record fee of $125 million. Without
Ronaldo's attacking prowess, United struggled to keep up with the experienced and high-scoring
squad of Chelsea, ultimately finishing as runners-up in the league. During this time, there were
concerns among supporters regarding the club's lack of spending on new players and the impact
of the Glazer family's ownership. In 2005, the Glazers, a family of American investors, had taken
the club private through a leveraged buyout, which resulted in a significant debt of over $900
million on United's balance sheet. The annual interest payment of $70 million on this debt
consumed a substantial portion of the club's free cash flow. Some fans expressed their discontent
during matches at Old Trafford, questioning the club's financial structure and its potential impact
on future prospects. However, both Ferguson and United's CEO at the time, David Gill, publicly
supported the Glazer ownership. Despite these challenges, Ferguson led Manchester United to
another league title during the 2010-2011 season, further solidifying his legacy. The following
season, he celebrated his 25th year at the club, becoming United's longest-serving manager. To
his great surprise, club executives honored him by naming one of the stands at Old Trafford after
him, a historic first in the club's 134-year history. This gesture recognized Ferguson's immense
contribution and achievements during his tenure as manager.

Ferguson Formula

Managing Game

Sir Alex Ferguson had a systematic approach to preparing and motivating his team for Sunday
afternoon games. He would select the team by Wednesday but would only reveal the starting
lineup to the players on the day of the match, around 1 o'clock for a 3 o'clock game. This was to
prevent opponents, media, and players' agents from knowing the team in advance. In the days
leading up to the game, Ferguson and his coaching staff would develop a tactical plan. They
would analyze the strengths, weaknesses, set pieces, and likely lineup of their opponents. On
Fridays, the players would go through a video analysis session focused on the upcoming
opponents, and on Saturdays, there would be a shorter recap of the analysis.

The night before the game, the team would stay at a hotel, and three hours before kick-off, they
would have lunch together. Ferguson noted that players tended to sit with those they were
familiar with, creating a sense of camaraderie. During this time, Ferguson would have private
conversations with players who were not starting but may have expected to. He would empathize
with them, acknowledging that he had experienced being dropped as a player himself, and would
try to instill confidence in them, emphasizing that it was a tactical decision and that bigger games
were still to come. Before the game, Ferguson would address the whole team, often using
different stories and themes to motivate them. He drew inspiration from various sources,
including his experiences at an Andrea Bocelli concert and books on history, politics, and sports.
Ferguson also encouraged players to take an active role in motivating their teammates,
highlighting the example of Bryan Robson, who was a great captain and spoke individually with
each player. During the 15-minute halftime break, Ferguson saw it as an opportunity to connect
with the team. He would consider what he would say during the last few minutes of the first half,
often being in a focused and concentrated state of mind. Ferguson did not believe in taking notes
during the game, as he wanted to observe every moment and did not want to rely on reviewing
notes in the dressing room. While Ferguson was often associated with passionate and fiery
halftime and post-game talks, he preferred a varied approach. He recognized that shouting and
screaming wouldn't always work and that constructive criticism was necessary. If the players had
given their best but still lost, Ferguson would not have a problem with it. However, if they had
performed poorly, he would make it clear that such performances were not acceptable at
Manchester United.

In the latter stages of a game, if United were behind, Ferguson would often push the team to
attack and take risks. He would encourage them to go for it, particularly in the last minutes of the
game. This approach, along with the perception of extra time added, gave rise to the concept of
"Fergie time," where referees seemed to allow United additional minutes to potentially equalize
or win games. After the game, Ferguson would address his team and then give a short television
interview. He was skilled at using the media to motivate his team and start preparing for the next
game mentally. To maintain perspective, he would have a glass of wine with the opposing team's
coach in his office after the game, emphasizing the importance of moving on and not dwelling on
the result. Overall, Ferguson believed in showing dignity and maintaining composure, regardless
of the outcome. His approach was centered on meticulous preparation, tactical analysis,
motivating his players, and using various techniques to keep them focused and driven.

Managing a Season

in terms of their United career. They are finished. The players have to know that I am in charge."
Ferguson's approach to training was focused on improvement and learning. He believed in
repetitive practice to hone skills and tactics. While some managers focused on pleasing the
players by allowing enjoyable games, Ferguson saw training sessions as opportunities for
growth. He emphasized the importance of not becoming complacent and continually striving for
improvement. The players were also trained to handle high-pressure situations, practicing how to
perform when a goal was needed in the final minutes of a match. As the years went by, Ferguson
delegated more of the training sessions to his assistants, allowing him to observe the players'
performance more closely. However, he still made a point to be present on the pitch during
training sessions, as his presence alone motivated the players to be sharper. Ferguson maintained
frequent communication with his players, having short meetings and conversations with them
throughout the season. These interactions could take place in his office, in the hallways, in the
cafeteria, or wherever an opportunity arose. He understood that managing a football club
involved addressing various issues that could arise on a daily basis. Ferguson prided himself on
his ability to make quick decisions and move forward, avoiding doubts or uncertainties. When it
came to disciplinary matters, Ferguson believed in keeping them within the club. He would
impose fines on players for misconduct but preferred to handle the issues privately. However, if a
player crossed a line and violated the standards set by the club, Ferguson responded forcefully.
He emphasized the need for maintaining control, especially when dealing with highly paid
professionals, and made it clear that any player who lost control would jeopardize their future at
Manchester United. Overall, Ferguson's management approach involved careful planning,
tactical analysis of opponents, gradual buildup throughout the season, delegation of training
sessions, constant communication, emphasis on improvement, and maintaining discipline within
the club. These strategies contributed to his success as one of the most respected and successful
managers in football history.

Managing Club
Sir Alex Ferguson took great pride in his efforts to rebuild and strengthen Manchester United's
youth program. Unlike many managers who prioritize immediate success, Ferguson recognized
the importance of building a solid foundation and structure for the club as a whole, not just the
first team. He believed in nurturing young talent and took immense satisfaction in seeing a young
player progress and eventually make it to the first team. Ferguson understood the importance of
maintaining a balance between experienced players and younger talents within the team. He
divided players into three categories based on age: those above 30, those between 23 and 30, and
the younger players coming through the ranks. His vision was for the younger players to develop
and meet the standards set by the older, more experienced players. Managing the team's
composition also meant making tough decisions and parting ways with players who no longer
met the required standards. Although it was difficult to let go of players who had been great
individuals, Ferguson emphasized that performance on the football field was the determining
factor. If he observed a decline or deterioration in a player's performance, he had to consider the
team's future and make necessary changes. Ferguson acknowledged that players had changed
over the years, becoming more fragile and sheltered compared to 25 years ago. He also
recognized his own evolution as a manager, stating that age had mellowed him and allowed him
to better handle these more delicate players. However, he also had to manage players who
possessed a more aggressive or "evil" side. While he couldn't remove that aspect from them, he
believed in accepting their flaws as long as they were balanced by their positive contributions to
the team. Throughout his tenure at Manchester United, Ferguson worked with some of the
world's biggest stars. He emphasized the importance of hard work as a talent and demanded
discipline from his players. Those who couldn't meet the standards or demonstrate a true desire
to play for United were not welcome in his team. Ferguson himself was a "bad loser" and sought
players who shared his relentless drive to win. In addition to the changes in player mentality,
Ferguson witnessed significant transformations in the football landscape during his 25 years at
United. The financial stakes increased, bringing both positive and negative consequences. He
adapted by expanding his backroom staff and appointing sports scientists to support the coaching
team. He embraced advancements in sports science, implementing innovations such as a Vitamin
D machine to counterbalance the lack of sunlight in Manchester and utilizing GPS systems in
player vests for immediate analysis of physical performance. Overall, Ferguson's ability to adapt
to the changing nature of football and his commitment to building a strong foundation through
the youth program contributed to his remarkable success at Manchester United.

Looking a Head
A coming and Going Rivals
During Sir Alex Ferguson's 25 years at Manchester United, several rival teams challenged
United's dominance in English football, but none were able to sustain their success against
Ferguson and his team. Liverpool FC, at the time Ferguson joined United in 1986, was the
biggest powerhouse in football, having won the European Cup four times and the English league
eight times in the previous eleven years. Ferguson had experienced Liverpool's strength firsthand
while managing Aberdeen, as they were beaten 5-0 on aggregate in the 1980 European Cup.
However, since the early 1990s, Liverpool had struggled to win the English league. Ferguson
famously aimed to knock Liverpool off their perch and succeeded in building United's success
above their historical rivals. Arsenal FC emerged as a strong force in the early 2000s under the
management of Arsène Wenger. With a focus on possession-based tactics and a mix of young
foreign players and experienced English players, Arsenal won the league in 1998 and 2002. Their
peak came in 2004 when they won the Premier League title unbeaten. However, Arsenal
struggled to maintain their success as key players left for higher salaries, and Wenger's
philosophy of developing young talent in-house limited their ability to compete for the league
title. Chelsea FC, traditionally not a strong force in English football, experienced a dramatic
change in fortunes when Roman Abramovich acquired the club in 2003. With significant
investment and the appointment of talented manager Jose Mourinho, Chelsea dominated English
football between 2005 and 2007, winning two league titles and an FA Cup. However, managerial
changes and difficulties in achieving sustained success in the UEFA Champions League hindered
their ability to maintain their dominance. Manchester City, United's local rivals, had historically
been overshadowed by United's success. However, the arrival of owner Sheikh Mansour in 2009
brought significant financial investment, and the club recruited talented manager Roberto
Mancini. City spent heavily on new players and steadily improved their performance, qualifying
for the Champions League for the first time in 2011. In the dramatic 2011-2012 season, City
secured the league title in the final minutes of the last game, intensifying the Manchester derby
rivalry. Outside of the English Premier League, Real Madrid and FC Barcelona emerged as
United's biggest challengers. Real Madrid, known for their "Galacticos" strategy of recruiting
star players, experienced commercial growth and competed strongly with Mourinho as their
manager and Cristiano Ronaldo as their star player. Barcelona, powered by their renowned La
Masia academy and attractive style of football, enjoyed a string of successes domestically and in
Europe. However, Barcelona faced financial difficulties and uncertainty following the departure
of coach Pep Guardiola. Throughout his career, Ferguson acknowledged the strengths and
qualities of his rivals' managers, such as Wenger, Mourinho, and Guardiola, while maintaining
his own unique approach to managing United's success.

Manchester United’s Next Chapter

As Sir Alex Ferguson stepped onto the field for the first day of training in the 2012-2013 season,
there was a sense of excitement and activity at Carrington, the club's training ground. Ferguson
had confidence in the team he had built over the years and believed they were capable of
challenging for trophies. However, he was also looking to make one or two new signings before
the season started to strengthen the squad. Ryan Giggs, returning for his record 23rd season with
the club, compared the challenge from Manchester City to the previous challenge posed by
Chelsea a few years ago. United had overcome that challenge and won the Premier League three
seasons in a row, and Giggs expressed confidence in Ferguson's ability to plan ahead and guide
the team to success. Chief executive officer David Gill acknowledged the immediate challenge
from City but also highlighted the importance of competing with Barcelona in Europe. He
recognized that challenges were an inherent part of top-level sport and emphasized the
importance of both domestic and European success for the club's football and commercial goals.
Ferguson, ever the optimist, was determined to do everything possible to win the English league
title and make a strong run in European competition. While he never made outright claims of
winning the league, he expressed his disappointment if United didn't seriously contend for it.
Reflecting on the challenges ahead, he mentioned that he wouldn't take the same risks in Europe
as the previous season, suggesting a more cautious approach. Drawing from his past experiences,
Ferguson was confident that he would find a way to overcome the latest challenges and lead
Manchester United to success in both domestic and European competitions. With his unwavering
determination and strategic approach, he aimed to write another glorious chapter in the history of
the club.