It appears not only Manchester United’s pride has suffered from missing out on Champions League football, as the true extent of the financial cost at Old Trafford has been revealed with profits set to plunge for 2015.
Officials at Old Trafford predict that profits will fall an extortionate 84% for the year to £23.8million from £146million this time last year, a drop of 84%.
However record revenues in 2014 came from the huge rise in TV broadcasting money and the recent £750million 10-year shirt deal with sports giant Adidas.
United also admitted that if it wasn’t for a one-off tax credit that boosted last year’s profits, the club would have recorded a loss.
The majority owners, the American Glazer family, stated that revenue increased by 19% in 2013-14, courtesy of TV and sponsorship deals.
Even this is predicted to fall over the next year.
The £130.1million profits are forecasted to slip between £90-95 million in 2015.
It was also revealed in the report that the ill-fated David Moyes and his backroom staff received a total of £5.2million compensation following the former Everton boss’ sacking in April after a reign of less than a year.
But executive vice-chairman at Old Trafford, Ed Woodward maintained that with Louis van Gaal and their summer investments in players can recover from a slow start and take United back in top four and Europe where they need to be.
“The recent signing of of some of the world’s leading players and appointment of Louis [van Gaal], have us very excited for the future going into the next chapter in the club’s history.
“Louis’ football philosophy fits with Manchester United’s and he has an impressive track record with all the clubs he’s managed.”
However, Woodward and the board must be concerned with the less than impressive start to Van Gaal’s reign after taking only two points from their three opening Premier League matches, in addition to a humiliating Capital One Cup defeat to MK Dons.
There was much furore over the unprecedented £750million merchandise deal signed with Adidas in July and will go some way to alleviate the £50million damage of missing out on Champions League football.
But with £10million a year interest payments on the club’s £400million debt the club owes to fork out, the riches of the Champions League is a necessity for United.
For the Glazers and Woodward, after their huge outlay on new players such as Radamel Falcao and British record signing Angel Di Maria, they will be ever more desperate to see improvements on the pitch: as the figures show, a return to Europe’s top table is a must.
Main image courtesy of Carl Recine/Action Images, with thanks.
