Carrick sacked in the morning? Why Man Utd announcement delayed
Manchester United are expected to announce the sacking of manager Michael Carrick on Monday, but the Red Devils have been unable to make an immediate official statement.
Carrick left Old Trafford on Sunday to the strains of ‘You’re getting sacked in the morning’ by Bournemouth fans, who had just watched their side inflict a historic 3-0 defeat to a wretched Man Utd side.
It was the eighth match in succession that Carrick’s side had failed to win, and the nature of the defeat left him facing the prospect of losing his job.
While Carrick’s long-term future hangs very much in the balance, Man Utd have not issued an official sack statement over their manager first thing on Monday morning because they are not allowed to.
As the Red Devils are listed on the New York Stock Exchange (NYSE), United must comply with its market disclosure obligations before formally announcing a potentially material change in management.
Carrick therefore has a stay of execution until United can complete the necessary disclosure process.
A precedent was set when his predecessor, Ruben Amorim, was sacked on 5 January.
Carrick sack: How the announcement will play out
Man Utd must first make an internal decision over the future of Michael Carrick. The widespread assumption is that this will see him sacked.
But even once that decision has been made, the Premier League giants cannot simply announce it immediately. They must first comply with their disclosure obligations as a company listed on the NYSE.
Why? Because a change of management is regarded as potentially material information for investors that United need to disclose appropriately.
United need to comply with US securities-reporting obligations because of its status on the NYSE as a foreign private issuer.
The timing is particularly relevant because the NYSE was closed over the weekend, meaning United had to consider how and when to make a potentially market-sensitive announcement. The exchange's rules require listed companies to promptly release information that might reasonably be expected to materially affect the market for their securities.
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