Manchester United have declared their revenues for the third quarter, and it looks like their drop in form on the footballing pitch over the past 12 months has had a big impact on their books. Executive Vice-Chairman Ed Woodward expressed confidence about the future, as the Red Devils are set to make a quick return to the Champions League after missing out last year.
According to Nasdaq, the American exchange on which United’s shares trade, states that the club reported a loss of £2.87 million, or 1.75 pence per share for the nine months ending 31 March, 2015.
Their revenues for this period was reported, by the Guardian at £289.4 million, a decline of 14.1% from the previous year. In the last financial year, the club had reported a profit of £10.91 million or 6.66 pence per share. The major reason for the drop in this quarter is the fewer number of United games broadcasted on television due to their non-participation in the Champions League. Also, compared to 2014, they had five fewer games telecasted live, and played two fewer home games too, thereby missing out on revenue from ticket sales.
Woodward though, is optimistic about the future, as he stated in his report that things would fall back into place under Louis Van Gaal.
An excerpt from his statement read: “We remain confident about the future of our business. Our commercial revenues were up year over year and we are raising EBITDA guidance for fiscal year 2015 from £90m-£95m to £103m-£110m.”
United have in their hands the most lucrative shirt sponsorship deal in Premier League history. The tie-up with Chevrolet pays the club a whopping £53 million per year, while their 10-year deal with manufacturers Adidas also comes into the fray from next season.
Despite this drop in numbers, Van Gaal is reportedly going to be given around £200 million to spend this summer, in an attempt to revitalise the squad and start challenging for the Premier League again. This year, the club were never in the race, and the 16-point difference between them and champions Chelsea doesn’t paint a pretty picture.
Still, no one can argue that they have improved vastly compared to the 2013/14 campaign, when they finished a lowly 7th under David Moyes. With Memphis Depay already signed from PSV Eindhoven, more exciting talents are set to be brought to Old Trafford. Woodward will hope that these incomings lead to a positive impact not only on the pitch, but also on the club’s income statement and balance sheet.