Partner Article

Reds’ finances take a tumble

Manchester United FC’s annual profits have fallen sharply, despite the club posting record revenues for the year.

United’s latest financial report states that net income has dropped by 84% for the year to 30 June to £23.8 million – down from £146 million a year ago. This, despite revenue for the period increasing by 19% to £433.2 million, compared with £363.2 million in the previous year.

The club has undergone a turbulent twelve months, reflected in the £5.2 million cost of dismissing former manager David Moyes and his coaching staff.

Projections also show that revenue is expected to fall by £50 million in the current financial year because of the team’s failure to qualify for the Champions League.

On the upside, last month the club announced it had clinched a £750 million 10-year shirt manufacturer sponsorship agreement with sportswear giant Adidas.

Ed Woodward, United’s Executive Vice Chairman commented: “We are very proud of the results achieved in fiscal year 2014 as we once again generated record revenues and EBITDA driven by our commercial and broadcasting businesses which delivered impressive year over year growth.

“We also recently announced a record breaking deal with Adidas and very much look forward to launching this partnership next summer.

“With Louis 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”.

Adjusted EBITDA is defined as profit/(loss) for the period before depreciation, amortization of, and profit on disposal of, players’ registrations, exceptional items, net finance costs, and tax.

This was posted in Bdaily's Members' News section by Simon Malia .