Manchester United forecasting revenue drop for the first time in a decade

Manchester United may have their on-field problems, but it doesn’t seem their off-field occurrences are running any smoother.

The red half of Manchester have suffered on the pitch since the departure of Sir Alex Ferguson in 2013 after a season that saw United claim their 20th top flight title, and have been through three managers prior to hiring their fourth, Ole Gunnar Solskjaer, who’s also struggling to have a positive impact on the team.

Things looked bright and filled with hope at Old Trafford when Solskjaer first arrived and inspired his United side to some wonderful results and fantastic form, but the club have crumbled since.

Despite the tough six years they’ve endured, things have been financially sound, mainly due to shirt sales of top signings, the TV and broadcast revenues, and most certainly the pulling-power of the Manchester United brand as a huge icon of the sporting world.

So financials have never been of great concern to United, despite the falling standards in the football. However, these next 12 months could be different.

United have reported that club revenues stand at £627.1m, an increase on the previous year’s £589.8m. However, the upcoming year is set to see the club finally lose out on revenue’s for the first time since this ‘footballing rebuild’ began.

A Kantar study found that the club has 1.1 billion global fans and followers, which guarantees a lot revenue in itself. Its year-over-year increase in total revenue largely came from an 18.1% increase in broadcast revenues, as commercial and match-day revenue was essentially flat compared to the previous year.

Failing to qualify for the Champions League was costly as well, a competition where Europe’s top football clubs share more than £2 billion. The alternate path has seen Manchester United compete in the second-tier European competition, the Europa League, which shares £400 million amongst its clubs.

Over the last year, Manchester United have signed ten new or renewed global sponsorship deals and will also see the benefits of a new Premier League broadcasting cycle designed to help improve international distribution and revenues.

In a club statement, the club’s executive vice-chairman Ed Woodward said: “We remain focused on our plan of rebuilding the team and continuing to strengthen our youth system, in line with the philosophy of the club and the manager.”

The information in this article was provided by Front Office Sports.

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