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1930s United were skint and shit, they nearly got relegated out of the league system completely at one point. City helped them out by voting against allowing Manchester Central into the league system and gave United some of our old kits because theirs were all tattered - ie, Rags.Give me your theory then because my grandad was attending games from the 30s onwards.
He compared at nightclubs and used the word ‘rags’ liberally, even to rags.
And using ‘rubbing rags’ as a reference makes no sense as they can be any colour. Whereas the saying “like a red rag to a bull’ has been used to describe annoying fuckers for centuries.
My Grandad has always referred to United as the Rags. He’s 84. It seemed to disappear for a few decades but came back in the internet era