Manchester United have revealed the cost of missing out on UEFA Champions League football in the annual accounts published by the club on Thursday, with an 8.8% drop in total revenue recorded for the financial year ending 30th June
David Moyes’ reign at Old Trafford lasted less than a year, but the financial repercussions of that disastrous season have now been made public by Manchester United in the club’s annual accounts, published on Thursday.
The Red Devils’ commercial revenue for the financial year ending June 30th took a fairly significant hit, while an overall annual loss of A?4 million was recorded compared to the A?40 million profits declared the previous year.
Cost of no Champions League football
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Although the lack of Champions League football appears not to have had a significant impact on the transfer activity of Manchester United, the club’s annual revenue was down by A?38 million to A?395.2 million from A?433.2 million — an 8.8% reduction.
Much of that can be attributed to the loss in Champions League matchday revenue and TV revenue associated with Europe’s premier club competition. According to the BBC, United’s matchday income fell by 16% to A?90.6 million, while revenue from broadcasting dropped to A?107.7 million, a decrease of A?28.1 million.
#MUFC revenue down by A?38m mainly due to failure to qualify for the @ChampionsLeague http://t.co/Ej3vqjcZC5 pic.twitter.com/oo0uR0ZkUH
a BBC Sport (@BBCSport) September 17, 2015
In total, the club’s failure to qualify for the Champions League cost Manchester United around A?35 million in lost matchday and TV income.
How does this impact Manchester United?
Unfortunately for their rivals, in no way whatsoever. The club have increased their revenue from sponsorship deals to a record A?154.9 million, and are projecting revenues for the current financial year of up to A?510 million according to Sky News.
If Manchester United were to hit that staggering figure, it would be the first time in history that an English club would cross the half-billion mark.
A statement released by executive vice-chairman Ed Woodward read (via Sky News):
“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.”