Manchester United have announced their financial results for the first three months of 2015 and while commercial revenue is up, broadcast revenue and matchday revenues are down, whilst debt has risen by 12 per cent.
The Q3 total revenue is £95million, with commercial revenue up 12 per cent to £47.8m. But debt has risen to £395.4m, 12 per cent, after the club missed out on the Champions League.
Missing out on the competition has cost the club 39 per cent of their year-on-year revenue, to £22m, whilst matchday revenue is down 31 per cent to £26m.
Manchester United: Potential transfer targets summer 2015
Manchester United: Potential transfer targets summer 2015
1/10 Nathaniel Clyne (Southampton, 24)
With Rafael never getting close to favour under Louis van Gaal, right-back has been a problem area all season for United, with Antonio Valencia filling in at the position. Whilst Valencia has done well, Clyne is now England’s first choice and easily in the top three in his position in the Premier League. Southampton will not want to sell another one of their stars, but the player seemingly wants to move.
2/10 Radamel Falcao (Monaco, 29)
Who knows what will happen with the Colombian. Certainly he is not worth anywhere close to the mega move United were considering when they agreed to loan him last summer, having only scored four goals all season. But with his track record as one of the world’s best, United would be foolish not to consider a cut-price move, just in case he’s not broken once and for all.
3/10 Gareth Bale (Real Madrid, 25)
If a deal were to go through it would be an absolutely massive coup for the club, of course, and you know Manchester United will be exploring any possibility of a move. Despite his perceived unhappiness in Spain, Bale’s agent said he will be staying at the Bernabeu next season. Would cost a massive fee but would instantly turn the club into title contenders.
4/10 Edinson Cavani (PSG, 28)
Manchester United will surely be tempted if he is available despite having bigger needs elsewhere in their squad. Despite the perception that he has struggled to fit in at PSG, Cavani still has 50 goals in 91 matches for the club and has played the majority of his time there out of position on the wing. Tall and athletic he seems like a perfect fit for the Premier League, although he will cost a huge fee.
5/10 Hugo Lloris (Tottenham, 28)
The potential transfer of the Spurs and France No 1 is entirely wrapped in the future of David De Gea - if the Spaniard moves to Real Madrid then United will be scrambling for a new goalkeeper and there aren’t many better than Lloris. He’s four years older than De Gea but still young for a keeper.
6/10 Ilkay Gundogan (Borussia Dortmund, 24)
With Michael Carrick ageing and Wayne Rooney forced to play in the middle at various points this season, central midfield will be one of Van Gaal’s top priorities. The Borussia Dortmund man, 24, is a classy operator, strong on the tackle and a box-to-box threat. He is apparently being chased by Arsenal, Chelsea and Liverpool, among others, so United will have to move quickly.
7/10 Mats Hummels (Borussia Dortmund, 26)
The World Cup winner should be United’s top target this summer, they have no bigger hole to fill than in the centre of their defence. Chris Smalling, Phil Jones and Jonny Evans are all talented defenders, but none of them have the leadership skills necessary and are a level below the very best. Hummels’ arrival would immediately improve the whole backline.
8/10 Nicolas Otamendi (Valencia, 27)
Like Hummels, Otamendi is the dominant type of centre-back that United are missing. He’s a bit on the short side – 6ft – but is a forceful character and very competent on the ball. Louis van Gaal should be considering a move for both, although that will take out a significant chunk of his transfer budget.
9/10 Kevin Strootman (Roma, 25)
It seems as if Louis van Gaal has been linked with the Roma midfielder for the entirety of his reign, who suffered another knee injury back in January and has only played seven times in all competitions this season, his only games since the original injury last April. If he can get back to full fitness then the Dutchman is a dominant midfielder with an eye for goal. But it’s a big ‘if’.
10/10 Felipe Anderson (Lazio, 22)
The Brazilian attacking midfielder has been linked with a £30m move to Old Trafford despite stating he wanted to stay in Rome. The 22-year-old scored 10 goals and added seven assists for Lazio last season and is seen as a potential star of the future.
In all, Manchester United have posted an £11.4m pre-tax loss for the first three months of the year, in comparison to a £20.4m profit for Q3 the previous year, but estimated EBITDA opertating profits for the season are up from £90m to £95m to between £105m to £110m.
EBITDA is related to operating profits and is the measure some companies use for their operating performance.
Manchester United vice-chairman Ed Woodward was not worried, however, and remains confident the results are a one season blip.
"We are pleased with the team’s performance in Louis van Gaal’s first season as manager and are well positioned to achieve a top four finish," said Woodward.
"[The drop] is primarily due to five fewer FAPL live broadcast games and two fewer FAPL home games in the current quarter, and non-participation in the Uefa Champions League," read a club statement.
"What we have seen from these numbers is growing confidence in the recovery of the team’s performance over the coming year," Joshua Raymond, Chief Market Strategist at City Index told The Independent.
"With a return to Champions League football all but assured, assuming smooth progression through a qualification stage, likely to help the club increase both match day and broadcast revenues. This, alongside with another strong set of commercial revenues has helped the company to hike its guidance."
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