United hit by Champions League setback
Liverpool FC have made it clear that Kenny Dalglish would not have survived even if he had won the FA Cup, taking two cup trophies. Not only has the FA Cup declined in prestige, it also generates relatively little cash for the war compared with Champions League qualification.
But qualification and a failure to progress beyond the group stage also hits a club's finances. This is evident from the latest Manchester United accounts for the nine months to the end of March. Match day and media revenues were down by £4.1m and £3.8m respectively for the quarter compared with the same period last year.
However, one of United's great financial strengths is its commercial department. Sponsorship income was up by £3.5m from 2011 and £12.8m, almost 17 per cent, for the nine months to March. Although wages increased by 9.9 per cent over the nine month period, total revenues rose to £245.8m from £231.6m year-on-year.
What will worry fans is that the more than £70m that has gone out of the club in debt and interest repayments in the space of nine months. The club spent £28.5m buying back bonds relating to 2010's financial restructuring, as well as footing an interest bill of £47.1m. This is the equivalent of £258,909 a day or Wayne Rooney's approximate weekly salary.