Manchester United have recorded and revealed their loss in the tune of £38 million which is the cost of missing out on qualification for the UEFA Champions League competition.
After the Red Devils legendary manager, Alex Ferguson left Old Trafford, David Moyes took over the reins at the club and his reign at Old Trafford lasted less than a year with several terrible implications including great financial loss which have now been made public by Manchester United.
Apart from the fact that Manchester United could not challenge for the Barclay’s Premiership Trophy, they also could not even make the Champions League qualification and not even the playoffs and decided to sack David Moyes quickly to put an end to the alarming decline at the club.
Manchester United which have remained one of the richest clubs in football had to take on losses in about every way they could with their commercial revenue for the financial year taking a major hit to record a loss of £4 million instead of a profit of £40 million that was recorded the previous year.
Their lack of Champions League football howeve took a big toll on the team, although they were still able to sign significant players and were still able to make moves like they were in the Champions League but the club’s annual revenue went down by £38 million to £395.2 million from £433.2 million — an 8.8% reduction.
They had to forgo profit making avenues like TV rights money and matchday incomes for teams in the European competitions.
A statement released by executive vice-chairman Ed Woodward however revealed that United are in a very strong position and their finances are very good despite all this as he said, “As we look to the new season, we are enthusiastic about our strong position, both on and off the pitch.” “In recent weeks we have further strengthened our squad with an exciting mix of experience and youth, qualified for the group stage of the UEFA Champions League and seen an impressive launch of our partnership with Adidas.” “Our record revenue … guidance for 2016 reflects the underlying strength of our business and our confidence in its continued growth.”
United fans will hope however that the team can maintain the present status quo and even build on it as this is a team that cannot afford to not be in the Champions League. They were made the laughing stock with several jokes and funny pictures created from their lack of Champions League football when they did not qualify and this would not have sat well with the fans. So it is hope that this can be avoided in future from here on.