Absence from the Champions League is starting to affect Manchester United’s finances. Revenue was down by just under 10 per cent in the three months to the end of September at £88.7m. In particular, the club made less from its deal with Nike because it was not in the Champions League.
Absence from the Champions League is starting to affect Manchester United’s finances. Revenue was down by just under 10 per cent in the three months to the end of September at £88.7m. In particular, the club made less from its deal with Nike because it was not in the Champions League.
Commercial revenue, the largest source of income, fell by 5 per cent to £56.8m. A modest rise in sponsorship revenue was offset by lower merchandise sales, partly due to not competing in Europe. Broadcasting revenue was down 13 per cent to £16.8m and matchday revenue was down 21 per cent to £15.1m. Gross debt was up 3 per cent at £362.2m.
However, the club has made compensatory savings. Employee benefits were down by 6.6 per cent, largely accounted for by lower player wages. The club also managed to save £1.9m on equipment. It’s intriguing to think what this might mean. Does it means that the footballs used in practice are replaced less often? It would take a lot of footballs to make that kind of saving.
It has been made clear that there will be no quick fixes in the January transfer window even though performance on the pitch continues to fall below expectations.