Absence of Champions League football is costly
United pay price for not being at Europe’s top table
The failure to qualify for the European Champions League after finishing seventh last season hit income in the three months to 31 December which fell to £105.7 million. The business registered a £55,000 loss for the period.
The club expects full-year revenue to slip from £433m to between £385-395m with profits in the £90-95m range against £130m last time.
However, the club will benefit from the new three year television rights deal with Sky and BT worth more than £5 billion and said that it was on track to recover. Manchester United currently occupy of the places for next season’s Champions League tournament. In spite of the slip in revenue, the club is the world’s second richest club behind Real Madrid.
“The recently announced Premier League broadcasting rights package…once again demonstrates that we are part of the top football league in the world,” executive vice chairman Ed Woodward said in a statement.
The absence of European games, however, hit its broadcast, stadium and other related income. Broadcast revenues fell by almost 40%, while two new sponsorship deals in the quarter will offer some respite by increasing commercial income by 9.7%.
The club is listed on the New York Stock Exchange and the shares opened up slightly today at $17.41 against last night’s $17.23 close, valuing the club at about $2.8bn (£1.8bn).