Man United revenue drops by £40 million

Manchester United’s revenue dropped by almost £40 million and they made a loss of £1.2m in the last financial year as they counted the cost of missing out on the Champions League.

But United are confident that they will have an annual income of over £500m this year — a record for an English side — after returning to Europe’s elite club competition, while also benefiting from record commercial revenue.

United, who had brought in a club record £433.2m during the 2013-14 financial year, saw that drop to £395.2m last season as their matchday and broadcasting income went down in the first campaign in a quarter of a century when they were not in Europe.

After making a profit of £23.8m in 2013-14, they made a loss of £1.2m last year, while their gross debt rose £70m to £411m.

But the success of executive vice-chairman Ed Woodward’s commercial strategy was apparent as United’s commercial revenue went up to £196.9m and sponsorship to £154.9m — both the highest amounts in their history.

United concluded the most lucrative kit sponsorship deal in football with a 10-year, £750m partnership with adidas that began in August.

And with domestic Premier League broadcasting rights up 70 percent in the next television deal, which begins next season, and Champions League rights worth 25 percent more, starting with the current campaign, United expect their income to grow again.

Woodward said in a statement: “As we look to the new season, we are enthusiastic about our strong position, both on and off the pitch.

“In recent weeks we have further strengthened our squad with an exciting mix of experience and youth, qualified for the group stage of the UEFA Champions League, and seen an impressive launch of our partnership with adidas.

“Our record revenue guidance for 2016 reflects the underlying strength of our business and our confidence in its continued growth.”

United’s shirt sponsorship deal with General Motors was a major reason for the growth in sponsorship revenue, but their retail and merchandising revenue went down by £5.6m, which was attributed to the club receiving less money from Nike due to their absence from European competition.

Their broadcasting revenue went down 20 percent to £107.7m, despite increased revenues for Premier League rights, and, with no home games in either Europe or the Capital One Cup, matchday revenue went down by £17.5m to £90.6m.

United’s wage bill dropped by £11.8m to £203m, partly because they were not paying players bonuses to compete in Europe, and partly after the 2014 departures of big earners such as Rio Ferdinand, Patrice Evra and Nemanja Vidic.

The club’s net finance costs rose to £35.2m as they continue to pay to service their debt.

United expect to bring in between £500-510m next year — just short of Real Madrid’s record total for a football club of £513m.

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