Manchester United's gross debts reduce despite revenue drop caused by Champions League exit

By David Gold

May 18 – Manchester United have seen matchday revenue drop as a result of their early departure from the UEFA Champions League this season, but they have also managed to reduce their debts over the last year.

Today, the Premier League runners up revealed their latest accounts, detailing figures for the nine months ending March 31, 2012.

Matchday revenues are down almost £2 million ($3.5 million/€2.5 million) on last year, as a result of United’s surprise early exit at the group stage of this season’s Champions League.

If just the three months leading up to March 2012 are analysed, matchday revenues look even bleaker – emphasising the impact of that Champions League exit.

During this time, the club moved into the Europa League, where they were knocked out at the last 16 stage (pictured below) by Athletic Bilbao.

However, figures do not include prize and television money from UEFA for participation in these competitions, which are likely to have taken a dent as a result of the early exits.

Due to the way UEFA calculate prize and television money given to clubs, Chelsea’s run to the final of this season’s competition will also impact negatively on United.

There is though plenty of cause for optimism, not least a reduction in overall debt by a further £60 million ($95 million/€75 million).

The Glazer family, who have struggled to win over Manchester United fans since their takeover of the club in 2005, now see the gross debt standing at just over £420 million ($626 million/€525 million).

Commercial revenues are also up by £13 million ($20 million/€16 million) from 2011, in part thanks to a new training kit sponsorship deal signed with DHL last year, as well as an agreement with Beeline.

Overall, the financial results will offer optimism for the future of the team – ranked as the most valuable in the world by Forbes last month – with United well placed to comfortably meet the challenges of financial fair play (FFP) regulations.

Rivals such as Manchester City, who pipped them to this season’s title, and Chelsea, have further to go to meet these new guidelines brought in by UEFA from this season.

There will though be pressure on the owners to invest in new players to help United win back their title and avoid another humiliation in Europe next season.

They have been strongly linked with the signing of Eden Hazard (pictured above), a skilful attacking midfielder with supreme technical ability and impressive close control, and pressure will be on to sign a player of his calibre.

Hazard has been the best player in France in the last two seasons, helping Lille to win the Ligue 1 champions title last year and secure a Champions League spot again this campaign.

Earlier this season, the Belgian announced he would leave Lille this summer, but signing the midfielder would cost upwards of £30 million ($47 million/€37 million).

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