Manchester United reveal failure under David Moyes cost club £50m

Failure to qualify for the Champions League will mean a dip of around £35m in revenue for next year

Football Correspondent

Manchester United have revealed that the full cost of the brief David Moyes term was £50million, as they prepare to hand Louis van Gaal a three-year deal to resurrect the team.

Van Gaal will not be appointed before next week and Ryan Giggs was still considering his own future 36 hours after his meeting with the Dutchman. But the urgency of Van Gaal's task became clear as chief executive Ed Woodward disclosed to New York Stock Exchange investment analysts that United's failure to qualify for the Champions League would mean a dip of around £35m in revenue for next year.

That substantial income drop includes a 15 per cent reduction in the price of executive facilities because of United's failure to offer any kind of European football. The club's Premier League income will also drop off substantially next season after the exceptional income of the 2012/13 title-winning year meant that the club reaped 50 percent of the Champions League TV money pool available to English sides.

The cost of firing Moyes will be in "single digit million pounds" the analysts were also told, while attempts to equip him with a squad to manage the transition season has meant a rise in wages of between 15 and 20 per cent for 2014, compared with 2013. The wages had risen because of the renegotiated contracts of players such as Wayne Rooney and Adnan Januzaj, while next year the wage figure will further increase, as United give Van Gaal as much as £150m to rebuild the side.

 

The financial cost of United falling from title winners to seventh was £8.4m – a dip from £97.5m to £89.1m – while the money paid out in total to Moyes was £7m, including his £3.5m basic salary. The sum total is just short of £50m.

United's delay in announcing Van Gaal as manager is a result of their attempt to tie up the last details and avoid an announcement which will distract from his Netherlands team's first World Cup warm-up match, against Ecuador in Amsterdam on Saturday.

But the need for a rapid appointment is becoming increasingly clear, with United keen to do some of the transfer business before the tournament gets under way and also to conclude the £27m transfer of Southampton's Luke Shaw.

Luke Shaw is among Manchester United's targets this summer Luke Shaw is among Manchester United's targets this summer  

Woodward only briefly mentioned Moyes in the course of a 20-minute webcast with analysts, during which he insisted that the club would be back in the top four at the end of next season.

"We are now focused on appointing a new manager who will help Manchester United return to the top of English football and challenging in Europe, we expect to make an announcement in due course," he said. "In the meantime we continue to be active in the transfer market.

The [transfer] window is upon us and deals are being done but not 'done' in the past tense. There's nothing announced. We haven't committed funds yet. You will just have to wait and see as we go through the window.

"Clearly we are [expecting to be back in Europe next season]. The club's expectations – and you will see this reflected in the transfer market and what we've recently done from a managerial perspective – our aim absolutely is to get back into the Champions League. [The £30m drop] is off a high base this year. Because we won the league in 2012/13 that triggers a much higher percentage of broadcast money that comes to us from our participation in the Champions League this year. It's a relatively high number this year. It's a one off."

The chief executive declared United's support for the Financial Fair Play which is destined to see Manchester City imminently hit by fines and squad restrictions. "On recent news that indicated Uefa is taking a strong line on clubs that breach FFP rules – we continue to support FFP and believe it will help control transfer fees and wage inflation," he said. "We also believe the quality of the club academy will be a key differentiator as FFP starts to take effect."

Suggested Topics
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
Caption competition
Caption competition
Latest stories from i100
Have you tried new the Independent Digital Edition apps?

Bleacher Report

Daily Quiz
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

Day In a Page

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?

A crime that reveals London's dark heart

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?
Meet 'Porridge' and 'Vampire': Chinese state TV is offering advice for citizens picking a Western moniker

Lost in translation: Western monikers

Chinese state TV is offering advice for citizens picking a Western moniker. Simon Usborne, who met a 'Porridge' and a 'Vampire' while in China, can see the problem
Handy hacks that make life easier: New book reveals how to rid your inbox of spam, protect your passwords and amplify your iPhone

Handy hacks that make life easier

New book reveals how to rid your email inbox of spam, protect your passwords and amplify your iPhone with a loo-roll
KidZania lets children try their hands at being a firefighter, doctor or factory worker for the day

KidZania: It's a small world

The new 'educational entertainment experience' in London's Shepherd's Bush will allow children to try out the jobs that are usually undertaken by adults, including firefighter, doctor or factory worker
Renée Zellweger's real crime has been to age in an industry that prizes women's youth over humanity

'Renée Zellweger's real crime was to age'

The actress's altered appearance raised eyebrows at Elle's Women in Hollywood awards on Monday
From Cinderella to The Jungle Book, Disney plans live-action remakes of animated classics

Disney plans live-action remakes of animated classics

From Cinderella to The Jungle Book, Patrick Grafton-Green wonders if they can ever recapture the old magic
Thousands of teenagers to visit battlefields of the First World War in new Government scheme

Pupils to visit First World War battlefields

A new Government scheme aims to bring the the horrors of the conflict to life over the next five years
The 10 best smartphone accessories

Make the most of your mobile: 10 best smartphone accessories

Try these add-ons for everything from secret charging to making sure you never lose your keys again
Mario Balotelli substituted at half-time against Real Madrid: Was this shirt swapping the real reason?

Liverpool v Real Madrid

Mario Balotelli substituted at half-time. Was shirt swapping the real reason?
West Indies tour of India: Hurricane set to sweep Windies into the shadows

Hurricane set to sweep Windies into the shadows

Decision to pull out of India tour leaves the WICB fighting for its existence with an off-field storm building
Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?