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FC United of Manchester went backwards though
That's the thing with phoenix clubs: they can absolutely work for a club with a strong core of local support, as AFC Wimbledon, Newport County, Chester FC, Hereford FC et al demonstrate

On the other hand when you make a phoenix club of a club, or in Man Utd's case an international brand, whose fanbase lives anywhere but locally (to put it mildly...) there won't be that core of local support when the team gets established there won't be the sustainability for the first decade that clubs need