Manchester United Reveal 25 Per Cent Fall In Quarterly Earnings

Manchester United have posted a 25 per cent fall in quarterly core earnings after their absence from the Champions League and fewer home games at the start of the season hit their matchday revenue.

The club's adjusted earnings before interest, tax, depreciation and amortisation for the three months to September 30 fell to £31.2m from a record £41.6m a year earlier.

United, who signed Paul Pogba and Zlatan Ibrahimovic during the summer, failed to reach the Champions League this season after finishing only fifth in the Premier League in the 2015/16 campaign, leaving them to play Europa League football this term.

They also played three fewer home games at Old Trafford in the period compared to a year earlier - one each in the Premier League, in Europe and in the EFL Cup.

The club said their net debt, which increased by 18 per cent from £286.2m to £337.7m, was "primarily due to the impact of foreign exchange rate movements on our US dollar denominated debt" - as Brexit impacted on the club.

Revenue came in at £120.2m, falling from £123.6m, although commercial revenue rose 4.4 per cent to £74.3m and now makes up about 62 per cent of total income, with five new sponsorship deals announced during the quarter with EA Sports, Tag Heuer, Apollo, Virgin Money and the renewal with Hong Kong Jockey Club.

Broadcasting revenue was up 5.4 per cent from £27.6m to £29.1m, with the increase primarily due, United said, to the new Premier League broadcasting rights agreement.

The club, controlled by the American Glazer family, maintained its revenue and profit forecasts for the 2016-17 year as a whole.  

They remain on course to top last year's record revenues figure of £515.3m, forecasting overall revenue of between £530m and £540m for the end of the financial year.

"Our financial results for this quarter reflect the impact of our non-participation in the UEFA Champions League, we are pleased that we remain on track to deliver record revenues for the coming year," said United executive vice-chairman Ed Woodward.

"During the quarter we added a number of top-quality players to our squad, which once again demonstrates our determination to challenge for trophies."

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