In-depth: Manchester United’s troubles on the pitch didn’t stop them bringing in record revenues last year – but is the real impact yet to become clear?
WHAT HAPPENED Manchester United may have suffered a difficult time on the pitch last season but the club reported revenue of £433.2 million in the year to the end of June, with a “core profit” of £130m. But United forecast on Wednesday that revenue and profit would fall in 2014-15, paying a price for missing out on European football this season. The team finished only seventh in the Premier League last season, missing out on a place in the lucrative Champions League for this campaign.
As a consequence, United forecast revenue of £385-395m in the current year, and profit of between £90m and £95m – though it is unclear how the almost £200m spent in the transfer market will affect the club’s books this time next year. The figures also revealed that David Moyes and his assistants received settlements totalling £5.2m, which, together with their wages for the year, suggests that the Scot’s regime will end up costing the club over £50m. Those bare figures only hint at the true cost, however, given the tarnished reputation that United now has. The club’s value on the stock market fell by as much as £250m during the Moyes era, and the turbulent start to the season has reversed the strong recovery it made in June when Van Gaal was appointed. The club’s value is currently nearly £200m less than it was at the end of Alex Ferguson’s time in charge. ED WOODWARD’S VIEW Club chief Ed Woodward talked up the results in fine style:
“We are very proud of the results achieved in fiscal year 2014 as we once again generated record revenues,” said the club vice-chairman. “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.”
OUR VIEW
Manchester United’s results were always going to be good this year – this set of numbers are based on 2013-14, which saw the club in European competition and still riding the crest of the wave (in terms of sponsors, merchandise sales and so on) of the successful 2012-13 season. The true impact of the Moyes era will be seen far more clearly next season, when the combination of missing European football this term, plus the impact of the club’s more fickle fans switching loyalty, will be more keenly felt. In addition, the cost of rebuilding the team this summer – with almost £200 million in transfer fees paid out – will hit them.
It’s a risky strategy – hell or bust, and if they don’t get back to the top table they could be in trouble. That seems unlikely, however. Woodward has clearly learnt some new tricks – he might have had to pay absolute top whack for the likes of Angel Di Maria (Qatar-backed Paris St Germain said recently that they decided he simply wasn’t worth the £100m in transfer fee and wages that United have shelled out), but he did at least complete that and several other major signings in the summer.
It was a clear upgrade on the previous two transfer windows. Given that the clubs finances remain so healthy – for now – the Red Devils could yet get away with the Moyes era. UEFA’s Financial Fair Play rules will only help them in that regard, since they mean that the clubs who enjoy the greatest off-pitch success will be the only ones able to afford the best players. One day in the not-too-distant future, the Moyes era will look like nothing more than a bump in a long road to continued success.
