–Debt rises by £24m
Manchester United have reported a drop in revenue of 14 per cent for the second quarter of their financial year as a result of being absent from the Champions League.
The club’s gross debt has gone up during the three-month period from £356.6m to £380.5m – which the Old Trafford outfit have put down to strengthening of the dollar.
United’s revenues for the three months to December 31, 2014, were £105.7m compared to £122.9m for the same period a year ago, but the drop was not as great as some analysts had predicted due to a reduction in the club’s costs and a rise in commercial income.
United’s executive vice-chairman Ed Woodward said the club – currently third in the Premier League table – was well placed to make it back into the Champions League next season.
“The recently announced Premier League broadcasting rights package for 2017-19, representing an increase just over 70 per cent, once again demonstrates that we are part of the top football league in the world,” he said.
“Notwithstanding no European football this season, our revenues and EBITDA (earnings before interest, taxes, depreciation, and amortization) remain strong and demonstrate the underlying strength of our business model, with commercial revenues up year over year.
“On the pitch, the team is well positioned to challenge for a top-four finish in the Premier League and we look forward to the rest of the season.”
The biggest impact on the finances has been the lack of broadcast income from European football, down 46.9 per cent to £28.4m.
The wage bill has dropped £2.9m over the three months – mainly due to a reduction in the size of the squad compared to last season.