"This season will be decided between Manchester United and Manchester City because of the recruitment. It's also (City manager) (Pep) Guardiola's and (United manager) (Jose) Mourinho's second season. They have the best squads. City have very good attacking players, probably best in the league, but United's squad is the best," the ManU legend told reporters today.
"They got the best squad in the league, in Europe and to handle injuries and suspensions. The other clubs - Tottenham, now playing their home games at Wembley, I thought it would be a problem. Chelsea (is) not recruiting like City or United.
Giggs is in the city to lead the Krystal Mumbai Warriors in the second season of the Premier Futsal, commencing here tonight.
The former Wales star also defended Englishman Wayne Rooney's decision to quit international football and also welcomed his move to his former club, Everton.
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"It's always difficult when you retire from international football. You have to look at everything because playing for your country is important. He wanted to move to a new club and give his all there. He hadn't become an automatic choice for England. When you play for 15-20 years with a big club and then you play in the Champions League, internationals, you literally don't get any rest," he said.
Giggs also termed ManU's decision to appoint Mourinho as a difficult one but said the club went for someone who was proven.
"It was a difficult decision after Louis Van Gaal left. Do they get a young coach and give him three or four years to build or do they get someone who has over the years guaranteed success and get them back to the top quickly. So they went for someone who is proven, who comes with a baggage also of not lasting long, is very outspoken, but gets the job done.
Asked that United fans hoped that he would get the job of the Club's manager, Giggs said, "Yes, I felt I was ready for the job. I know the club and the traditions, so there were phases, but I also didn't have the experience in coaching before."
Does he see himself return to the Old Trafford as a manager, and Giggs quips "who knows."
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