Manchester United’s absence from Europe to cost up to 48 million Pounds
3disclosed the first concrete figures on the financial cost of being absent of the Chmpions League. The club says the estimated revenues will drop this season by between 38 million and 48 million pounds – a fall of between 8.77 percent and 11 percent on the previous season’s overall revenue number of 433 million pounds – as a consequence of not taking part in Europe.
The sources of income from broadcasting revenue and match day revenue that was each 19.3million pounds for the first quarter of the 2013-14 financial year can be expected to suffer. Broadcast revenue will take a hit because no money is coming in from UEFA - it had a value of 44.7 million Euros (35.7 million pounds) to United in 2013-14 whereas match day income will suffer because European matches will not be there in comparison to the previous season which was valued at about 200 million pounds.
The initial quarterly numbers, in the span of three months ending September 30, 2014, will be broadcasted around 12 noon on Tuesday, and United’s executive vice-chairman will participate in a conference call with investors an hour afterwards.
The statement will clarify how much United have managed to cushion the financial setback of not taking part in Europe in terms of the club’s solid rise in income from sponsorship and other commercial deals. The figures ought to also give indicators on the magnitude to which the club’s total wage bill has risen in comparison to a year back as a result of recent signings by manager Louis van Gaal.