Ed Woodward's impressive credentials as an accountant don't compliment his baby-faced persona known to the wider public. The United Chief Executive succeeded long-term servant David Gill in the role at the end of the 2012/2013 season, after making the ‘United Brand’ even more lucrative during his years as the club’s commercial director.
However, since his tenure as CEO began, the 43-year-old has acquired many enemies amongst the Old Trafford support. The Moyes-Woodward partnership – as opposed to the highly successful Ferguson-Gill partnership of 10 years – oversaw a disastrous summer transfer window in 2013, which saw the pursuit of highly-publicised targets of Cesc Fabregas, Toni Kroos and Leighton Baines fail miserably.
The fury ignited through the lack of signings was then exacerbated when United did sign someone. The £27.5m paid for Marouane Fellaini appeared a panicked purchase, as opposed to a thought-through acquisition. In the proceeding transfer window, five months later, Woodward then forked out £37.1m for Juan Mata – a quality player, but one on the fringes of the Chelsea starting XI; he had played only 836 of a possible 1890 minutes of Premier League football in the season, before joining.
An accumulative £64.6m spent on players who had a subdued impact throughout the season meant that – after the sacking of David Moyes and hiring of Louis van Gaal – Woodward would play a pivotal role in signing world-class talent in the summer of 2014.
Summer Transfer Window
Prior to the summer transfer window, it was widely reported that United had funds of £150m to spend on new players. Why was this figure released? Through leaking that initial figure it made selling clubs aware that United could pay over the ‘market price’ for players.
In June, United began the window by triggering Ander Herrera’s release clause, which stood at £29m. A day after, English left-back Luke Shaw was then signed for an initial £27m, which could rise by a further £5m, dependent on his performance.
July was the month where Woodward made his greatest achievement as CEO, yet also made his greatest error. In a month where no signings were made, Woodward finalised a ten-year kit deal with Adidas, which will see the club earn £750m. One week after United announced the record-breaking kit deal, Woodward uttered his own immortal lines on the matter of the club’s transfer policy.
When questioned on the huge transfer fees which had been paid for Luis Suarez (£75m) and James Rodriguez (£63m) in July, Woodward commented on how United could compete with these prices: “It is in our capabilities. The club are not afraid of doing that - spending significant amounts of money in the transfer market.” He continued, saying, “Whether it's a record or not doesn't really resonate with us. We are in a very strong financial position. We can make big signings.”
These words should not be contained inside quotation marks. People within the business of football have prerequisite knowledge that United are a global brand, yet what Woodward said should not have been exposed to the public. It is the same issue as the leaked £150m of transfer funds prior to the window – making selling clubs aware that you are willing to break records willing only occur in them charging an inflated price, which they know you can meet.
As August came, van Gaal identified Marcos Rojo and Angel Di Maria as targets and they were both signed, for £16m and a British record fee of £59.7m respectively. Record broken. Nearing the end of the window, Daley Blind was then acquired for £13.8m, whilst Radamel Falcao was signed on a season-long loan, costing the club £6m.
The total spent on summer transfers was £151.5m – the record money spent in a transfer window. They had the funds, and they used them. Credit can be given to Woodward in that he secured the signatures on van Gaal’s wish list, barring the acquisition of an experienced centre back in Mats Hummels.
Poor Business
The United fans are happy that the funds were spent, but it’s the business that is worrying. For a chartered accountant, you’d think Woodward would be shrewder in the news leaked to the media regarding transfer funds. It’s just simple business: you don’t go into an antiques auction wearing a gold-studded suit with fifty-pound notes falling out of your pockets.
Under the Woodward era United have spent £216.1m on eight players, in 18 months. Investment into the ageing – at times flaccid – squad was needed, but the expenditure flatters the quality which has been purchased.
Numbers such as £29m on Ander Herrera – a promising 25-year-old – are quite astonishing given that current squad players of Wayne Rooney, Robin van Persie, David de Gea and Michael Carrick were all purchased for an inferior price.
Speaking on a conference call to investors in late November, Woodward spoke with regards to the upcoming January transfer window, stating: “We are not looking to enter the market for short-term fixes.” This is spot on. United do need long-term investments into young players and have made them; of the seven permanent Woodward signings, the average age is 24.
Another well-publicised story is Louis van Gaal’s next transfer target – Kevin Strootman. The Roma holding midfielder was integral to van Gaal’s Dutch side and it is reported that the two have a ‘gentlemen’s agreement’ for Strootman to come to Old Trafford. However, in the knowledge of United’s leaked spending power, the Roma boss Rudi Garcia has branded Strootman with a €100m (£78.9) price tag. This shows the effect of Woodward’s words on selling clubs.
Future
Being astute with the media and sharpening up the books could see Woodward develop into a superb CEO for United, like his predecessor Gill was. After the flurry of summer spending with presumably more to come, results on the pitch and trophies should soon follow. They're the numbers that really count.
Source: DSG
