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In England, teams with the United moniker represent mergers by fontoknow

of multiple football clubs. That's at least the usual use of term. MU was just a rebranding of a company team associated with the Lancashire and Yorkshire Railway. It was originally known as the Newton Heath LYR Football Club. The united name comes from four business men taking over the ownership interest from the railroad and rebranding the team.

In the case of MU, they play in Old Trafford, which is a community of Greater Manchester. Old Trafford is not just the name of the stadium, in fact there is another, older more historic Old Trafford (Old Trafford Cricket Grounds) just down the road from Old Trafford the football stadium.

Teams with the City moniker typically mean they were established in their city proper. Like Manchester City.

Also note, that many many of these teams were established as departments of larger sports clubs (literally membership organizations like a country club in the United States). The names of the football teams took the name of the sporting club. This is very common throughout Europe.

The first known use of United was by the Sheffield United Cricket Club. This was an amalgamation of severl local cricket clubs ... the Sheffield United Association Football Club was a department of the Sheffield United Cricket Club ... hence their name.