Man United pay heavy price for lack of Champions League
Despite reporting an 84 per cent slump in net income for the year, Manchester United’s annual revenue is up 19 per cent, having jumped to £433.2m from £363.2m previously.
Currently 5/4 to finish inside the top four this season, the Red Devils will miss out on television revenue, and gate receipts having failed to qualify for the Champions League last term.
The announcement comes a month after United agreed a £750m, 10-year kit manufacturing sponsorship deal with Adidas, who will be expecting a significant improvement in performances this season. Having installed Louis van Gaal as manager for this term, United were hopeful of an instant improvement, however the club have failed to record a win so far in the Premier League.
Executive vice-chairman, Ed Woodward said: “With Van Gaal at the helm as manager, and the recent signing of some of the world’s leading players to further strengthen our squad, we are very excited about the future and believe it’s the start of a new chapter in the club’s history.
“Louis’ footballing philosophy fits very well with Manchester United and he has an impressive track record of success throughout his career, winning league titles with every club he has managed.”
Without a doubt, the club took risks in the last week of the transfer window, bringing in players they hopefully feel can make a difference. While fans were crying out for world class centre backs, United instead spent big on Argentina attacker Angel Di Maria, just shy of £60m, as well as £14m on utility man Daley Blind, and a £6m loan fee for Colombia centre forward Radamel Falcao plus his £265k per week wages.
Many argue these are luxuries United don’t need, however there is no doubt Falcao et al will improve the squad. Add to this the potential tactic that the signings will pack Old Trafford to capacity, and sell a number of shirts.
Merchandising so far, since the end of transfer window is reported to have reached £2m and, if their new signings secure Champions League football, next year’s balance sheet should read a lot better.