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The story of Manchester United began in 1878 when employees of the Lancashire and Yorkshire Railway Company's Carriage and Wagon Works requested permission and sponsorship from their employers to start a football team. Permission was given, and Newton Heath L&YR (which stood for "Lancashire & Yorkshire Railway") was born, playing at a pitch on North Road in Newton Heath.
The club played few recorded matches in their early years, initially playing against other teams of railway workers, within their own company and against teams from other companies. The 1882–83 season saw the Heathens play a total of 26 recorded friendly matches, and the next season they applied for the Lancashire Cup. However, they were knocked out in the first round by the reserve team of the previous season's FA Cup winners, Blackburn Olympic, losing 7–2.
Perhaps viewing the county cup as too much of a challenge, Newton Heath applied for the Manchester and District Challenge Cup in 1884, reaching the final at the first attempt. The team never failed to score at least three goals in each of the rounds leading up to the final, including a first round match against Eccles that had to be replayed after the Eccles management protested about Newton Heath's third goal.Unfortunately, the team lost their goalscoring form in the final and lost 3–0 to Hurst at Whalley Range.The club's failure to progress past the second round of the Lancashire Cup, however, caused them to refrain from entering for the next four seasons.
After that, Newton Heath reached the final of the Manchester and District Challenge Cup five times, only losing once. Meanwhile, in 1886, the club decided to expand by turning what was a "junior" club into a senior one. They signed players of national reputation such as Jack Powell, who became club captain, Jack and Roger Doughty, and Tom Burke.The club's greater stature meant an increased level of opposition, and they entered the FA Cup for the first time in 1886–87. They were drawn away to Fleetwood Rangers in the first round, and managed to earn a 2–2 draw by the end of normal time. However, the referee had turned up to the game expecting to play extra time in the event of a draw; the Newton Heath captain Jack Powell refused to play the extra period, though, and Fleetwood were awarded the tie, after a protest to the Football Association.Newton Heath then went into a self-imposed exile from the FA Cup, not entering again until 1889.
In 1888, having been spurned by the Football League earlier in the summer, Newton Heath entered their first ever league competition, becoming founder members of The Combination. Their first season of league football began brightly enough, but in April 1889, the Combination hit financial difficulties and was wound up before the season could be completed.
The Football Alliance
Although Newton Heath were not good enough to join the Football League, they were quickly outpacing their local competition. Newton Heath spent the first ten months of 1888 unbeaten at their home ground. However, the idea of inter-town football had caught on, and in 1889, a group of twelve clubs, Newton Heath among them, formed the Football Alliance. They finished eighth.
The next year, Newton Heath began to sever their railway ties, dropping "LYR" from their official name. However, strong connections remained intact, although they no longer were sponsored by the company, most of their players were still LYR employees.
1892 proved to be a successful season for the "Heathens", as they finished second to Nottingham Forest after losing only three times all season. That same year, the Football League enlarged and, with the merger of the Alliance, divided into two divisions. Newton Heath and Nottingham Forest were invited to join the First Division. They finished last and needed a win against Small Heath in the playoff against the Second Division champions to preserve their First Division status.
In 1893, the team moved to a new ground in Bank Street, Clayton, next to a chemical plant. It was said that when Newton Heath were losing, the plant would belch out acrid fumes in a bid to affect the visiting team.
The 1893-94 campaign, however, was no better, and they once again were in the relegation playoff against Liverpool. This time Newton Heath were defeated 2-0 and had the dubious honour of being the first team to be relegated to the Second Division.
Near-bankruptcy
On the face of it Newton Heath began the twentieth century well, but they had failed to gain promotion and the money was running out fast. The financial situation only worsened, dragging down their on-field play. They managed only 10th place in the 1901 season, losing more games than they won and with ticket sales flagging and debts mounting, the club decided to hold a four-day bazaar to raise money. One of the attractions was a St. Bernard dog, which escaped with a collection tin on one of the nights after the bazaar had closed. The dog then found its way to John Henry Davies whose daughter became so smitten with it that he enquired about the origin of the tin, and in doing so saved the club from near ruin.
It was the escape and recapturing of the dog which led to the meeting between team captain Harry Stafford and Davies, who would lead a group of businessmen. Together, they came up with £2,000 to save the club from bankruptcy.
John Henry Davies became the club president, and on 28 April, 1902, the new owners renamed the club Manchester United Football Club, after considering the alternate names "Manchester Celtic" and "Manchester Central". They also changed the team's colours to red and white. The cavalry arrived just in time as Newton Heath ended a disastrous season 15th with only 28 points.
Having been saved from oblivion by four wealthy businessmen, the club played its first season as Manchester United in 1902/03. The badly needed injection of cash, plus some new players, gave the flagging side the boost it needed. They won 15 league games, notched up 38 points and finished fifth.
After a bad start to the season, the club took another important step in 1903 in hiring their first real team manager, J. Ernest Mangnall, a charismatic publicist who knew how to work the media. His dynamic style forced the side to go up a gear. By the end of the season 28 players had figured in first team games. He believed the ball should be kept away from players during training to make them even keener to get hold of it on Saturdays. Under his leadership, the team finished third in the Second Division. The following season, Manchester United set a record when they went 18 games undefeated after losing to Bolton 2-0 in September 1904 up until they lost to Lincoln 3-0 in February 1905. During the season they finished 3rd with 53 points. Off the field the club suffered a financial setback when they were banned from selling alcohol inside the ground.
Mangnall created United's first successful side with a series of signings, eventually winning promotion in 1906. They finished second overall and reached the quarter-finals of the FA Cup, beating Aston Villa 5-1 in the fifth round. Among these signings was Billy Meredith, the legendary winger who was probably the greatest player of that era.
Ernest Mangnall managed to sign star defender Herbert Burgess, Alec "Sandy" Turnbull, and Jimmy Bannister after a scandal hit Manchester City and forced them to sell off most of their team. It paid off, and Manchester United won their first League Championship in 1908. At one point they won ten games on the trot. They even attempted to sign Australian rugby footballer, Dally Messenger, a man recognised by some to be the top footballer of any code in his day. It was, without doubt, a classic season, marred only by the first signs of crowd trouble at Sheffield.
The next year, FA Cup success would follow as they beat Bristol City in the final 1-0. Sandy Turnbull scored the only goal and Billy Meredith was named man of the match.
