Manchester United announce club-record revenue for 2018/19
Club expect profits to fall considerably after missing out on Champions League qualification
Tuesday 24 September 2019 22:05, UK
Ed Woodward has said Manchester United will continue to make the "necessary investments " to return the team "back to the top of English football".
United announced club-record revenue of £627.1m for the year ending June 30, 2019, up 6.3 per cent from 12 months ago, despite Ole Gunnar Solskjaer's side performing poorly on the pitch, with just eight Premier League points from six games this season.
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The club spent almost £150m in the summer on the three significant signings of Harry Maguire, Aaron Wan-Bissaka and Daniel James, yet their financial prominence still continues to grow.
Speaking to club investors, Woodward said: "Returning to the roots of our club's ethos of youth-led, attacking football is the right way forward and everyone at the club: the board, the manager, the squad and all of the staff remain resolute in our desire to get Manchester United back to the top of English football.
"We'll continue to make the necessary investments to make this happen across our first-team players, our academy and our recruitment department. This long-term approach to building a squad is the right one."
However, revenue is forecast to significantly drop over the next financial year, after missing out on Champions League qualification due to their sixth-place Premier League finish last season.
United expect adjusted core profit of £155-£165m, down from £185.8m last year and will not be able to fully capitalise on UEFA's broadcasting revenue distribution system.
Woodward said: "We and our growing global fan-base demand success. Success means winning trophies. That target and that standard has never changed for Manchester United.
"The progress we've made on the business side underpins the continued investment in the football side.
"Much of the progress made around that investment in the academy, the recruitment department and the training ground facilities is behind the scenes and therefore isn't immediately apparent to those on the outside looking in.
"These investments, together with the commitment we've made to Ole and his coaching staff in March have given us the building blocks for success.
"Whilst we're confident this investment will deliver results, it's important that we are patient while Ole and his team build for the future.
"We will continue to focus on the long-term strategy and won't be influenced by short-term distractions. We're optimistic for the future."
'Man Utd still look equipped to continue to buy their way out of trouble"
Sky Sports News reporter James Cooper analyses the latest set of financial results from Manchester United.
There's a very familiar ring to Manchester United's performance off the pitch. The club continue to march on financially and are the envy of pretty much every team on the planet with record revenues placing them in second place globally behind only Real Madrid.
Tuesday's figures were right in line with expectations bolstered by another 10 sponsorship deals and independent research which now clocks Manchester United's fanbase across the world at 1.1billion. On top of that, the debt around the club's neck is at an all-time low too at £203.6m.
But there are no signs of celebrations or champagne corks with Ed Woodward. In perhaps his most forceful and passionate opening remarks, he stressed the need for "patience" and a long-term strategy, while reassuring fans the "building blocks for success" are in place and that with a "strong squad" bolstered by summer arrivals, he's "optimistic for the future".
So some off-the-pitch positivity to sit alongside the on-the-pitch negativity in the wake of the weekend defeat at West Ham. And admittedly at a time when people are demanding even greater spending on the back of a year that has seen nine new contracts and three summer signings, United still do look equipped to continue trying to buy their way out of trouble but the real problems might be spelt out this time next year.
The club will be hit in the pocket after missing out on Champions League football thanks to last season's sixth-place finish. Should that be repeated at the end of this campaign, a penalty clause will be invoked that will see adidas' payment as part of the 10-year £750m deal fall by 31 per cent.
Manchester United are a financial monster, spelt out by operating profits of £50m, but predictions of a fall in revenues next year to between £560-£580m, potentially the lowest amount in four years, shows they are preparing to navigate some sizeable bumps in the road to come. Woodward and his teams have set revenue records for the last three financial years, but that run is set to come to an end.
Previous figures have already illustrated just how much it cost United to get rid of Jose Mourinho, but at £19.6m it was worth repeating and another reminder that the club can withstand such a big payment and rake in more cash than they have ever done before.
Tellingly, post-Mourinho, Woodward also spoke of restoring the club's ethos of young players playing attacking football. I have been reminded on plenty of occasions recently the entire club is dedicated to building "the next trophy-winning team" with no attention paid to "short-term distractions" such as a Premier League run that has seen just four wins from the last 14 games or 16 points from the last 45 points available.
United's executive vice-chairman also mentioned the search for what he called a "head of football", acknowledging there is a search but failing to mention a timescale on that appointment or exactly what the structure might look like after the right candidate is secured.
All in all this was another financial occasion that will come as little surprise to United's ever-growing set of fans and while the club has demonstrated its will and ability to support Ole Gunnar Solskjaer and his bid to bring back the good times, Woodward has also shown he has the appetite for the challenges that lie ahead.
