David Moyes ‘ disastrous reign at Manchester United cost the Old Trafford outfit at least £38million, according to figures released today.
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Manchester United (NYSE:MANU) is confident it will post record revenue for 2016, despite it seeing a £38mln drop in 2015, mainly because the famous football club did not qualify for the UEFA Champions League.
United claim they have the financial might to take this hit and forecast they will become the first English club to earn half-a-billion pounds next year.
The club have enjoyed a record £154.9m sponsorship revenue – an increase of 14.1% – due in the main to a total of 11 new lucrative partnerships, while a decrease of 5.5% in the total wage bill has softened the blow of a lack of European football.
“As we look to the new season, we are enthusiastic about our strong position, both on and off the pitch”, said Ed Woodward, club executive vice-chairman.
However, with the club now back in the Champions League, Fiona Cincotta, who is an employee of Finspreads, has told Sports Mole that those connected with United should not be concerned.
“We have seen a large number of ins and outs in the last two summer windows”, Woodward said in a conference call to Wall Street analysts.
This was slightly offset by a £12m drop in staff costs.
Despite the commercial success driven by United’s global appeal, the club only finished fourth last season under new Dutch coach Louis van Gaal, still short of the success laden years under Ferguson.
“We don’t get reported to on a granular basis but the numbers around the deal in the States are not far off. It is positive, definitely heading in the right direction in terms of where you would expect it to go”.
When asked about City’s recent success, Gill said: “I’m not being -arrogant, but it will never be as big as Manchester United in Asia and certain markets”.
Net debt fell to £255.2 million from £275.4 million.
In a separate filing, United said it would raise another $400 million by selling 24 million “Class A” shares.
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“There is still significant discussion about FFP being important to all clubs across Europe…[In the Premier League] there are some big revenue increases coming…and bare in mind when you buy a player…the fee is spread over the length of his contract through amortisation”.
