United hit by Champions League exit
Manchester United's full accounts are not expected to be available until later this month but the extent of the hit the club took as a result of its early exit from the Champions League is apparent in the documentation it filed in New York earlier this month in connection with its share issue.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (known as Ebitda) is estimated to have fallen by between 16 and 18 per cent to £90 to £92 million. Turnover is expected to drop by 3 to 5 per cent from £331m to between £315m and £320m.
Broadcasting revenue was hit particularly hard by the exit from the Champions League at the group stage. Broadcasting revenue is estimated to have dropped between 11 and 13 per cent to between £102 and £104m compared with £117.2 million in the year ending June 2011.
Matchday revenue is also forecast to have fallen by 11 or 12 per cent from £110.8m in 2011 to between £97m and £99m as a result of playing four fewer home games last season than in the preceding campaign.
The one bright spot is commercial revenue, reflecting the strength of United as a global brand whatever temporary setbacks the club encounters on the pitch. Commercial revenue is predicted to increase by between 11 per cent and 13 per cent to £115m to £117m, a sum well in excess of matchday revenue. This reflects increased sponsorship deals and a successful pre-season tour of the United States, but does not take into account the seven year shirt sponsorship deal struck with Chevrolet.