News ID: 231846
Published: 0553 GMT September 26, 2018

United's on-field slipups fail to slow financial juggernaut

United's on-field slipups fail to slow financial juggernaut
CARL RECINE/REUTERS

English soccer club Manchester United forecast revenue for 2018-19 to rise to record levels, helped by increased broadcasting revenue as a result of UEFA’s new revenue distribution system coming into effect.

The forecast comes despite the club having dropped off the pace in the new Premier League season, sitting seventh in the table, eight points behind leader Liverpool and six adrift of cross-town rival and reigning champion Manchester City, Reuters reported.

United, whose squad includes French World Cup winner Paul Pogba, Spain goalkeeper David de Gea and Chile forward Alexis Sanchez, said revenue is expected to be between £615 million and £630 million in the year to next June.

Revenue for 2017-18 also came in at a record £590 million ($775.4 million) despite a slowdown in the fourth-quarter, due to a dip in commercial and broadcasting revenue.

“Our increased revenue expectation for the year demonstrates our continued strong long-term financial performance which underpins everything we do and allows us to compete for top talent in an increasingly competitive transfer market,” Executive Vice Chairman Ed Woodward said in a statement.

Manchester City, owned by Arab billionaire Sheikh Mansour bin Zayed Al Nahyan, won the league with a 19-point margin over United last season and is now looking to close the gap on its local rival off the pitch as well.

Earlier this month, City posted revenue of £500.5 million and profit of £10.4 million for the year ended June 30.

 

Widespread perception

 

Despite the widespread perception that United’s football has fallen behind City – a club once dismissed by former manager Alex Ferguson as “noisy neighbors” – Woodward said the club’s priority was still on-the-pitch success.

“Our board, our investors, and everyone at the club are aligned with the fans on what we need to do on the pitch, and that is to win trophies,” Woodward said on a post earnings conference call.

There have been media reports of behind-the-scenes discord between Woodward and team manager Jose Mourinho, over the club’s recruitment policy.

The club signed three players in the latest summer transfer window for a total of about £64 million but did not buy a central defender, leaving Mourinho frustrated.

Manchester City’s spend was at a similar level to United’s, as it brought in three new players for a total of £62.6 million. Liverpool, by contrast, spent £171.3 million on four new players.

United’s revenue for the three months ended June 30 fell 16 percent to £147.6 million, as the team’s failure to progress beyond the round of 16 in the lucrative UEFA Champions League contrasted with the previous year, when it won the second-tier Europa League.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the year are expected to be between £175 million and £190 million compared with £177.1 million pounds reported for 2017-18.

The club said its employee benefit expenses for the year rose 12.3 percent to £295.9 million, primarily due to higher player wages related to participation in the Champions League.

UEFA had released its new revenue distribution system in June, under which €2.5 billion ($2.95 billion) would be distributed among clubs participating in the Champions League, Europa League and Super Cup competitions.

The amount available for distribution in 2017-18 was €1.72 billion.

 

   
KeyWords
 
Comments
Comment
Name:
Email:
Comment:
Security Key:
Captcha refresh
Page Generated in 0/0967 sec