Manchester United has forecast a decline in profits and revenues for 2015 after failing to qualify for the Champions League for the first time in 20 years. The club reported a sharp drop in net income for the 2013-14 financial year, despite record revenues.
Net income fell 84% to £23.8 million for the year ending 30 June, down from £146 million the previous year. The club attributed the decline partly to a one-off tax credit that boosted last year's profits; without it, United would have made a loss. Revenue rose 19% to £433.2 million, driven by improved TV and sponsorship deals, but is now expected to fall to between £385 million and £395 million.
Underlying profits for the year were £130.1 million, forecast to drop to between £90 million and £95 million. The results also revealed that former manager David Moyes and his backroom staff received £5.2 million in compensation following his sacking in April after less than a year in charge.
Executive Vice Chairman Ed Woodward expressed optimism about the future under new manager Louis van Gaal, citing the signing of top players and a record-breaking £750 million 10-year kit deal with Adidas. However, Van Gaal's tenure has started poorly, with only two points from three Premier League games and a shock League Cup defeat to MK Dons.
