Formed in 1878 as Newton Heath LYR (Lancashire and Yorkshire Railway) Football Club. They initially played games against other departments and rail companies, but on 20 November 1880, they competed in their first recorded match against Bolton Wanderers' reserve team.

In 1892, the club joined the Football League, by which time they had become independent of the rail company and dropped the "LYR" from their name. By January 1902, the club had debts of £2,670 and was under risk of closure, until Captain Harry Stafford found four local businessmen willing to invest. The name was subsequently changed to Manchester United Football Club in April 1902.