ManU announced its financial results for the first three months of '15 and "while commercial revenue is up, broadcast revenue and matchday revenues are down," and debt has risen by 12%, according to Tom Sheen of the London INDEPENDENT. The Q3 total revenue is £95M ($150M), with commercial revenue up 12% to £47.8M ($75M). But debt has risen to £395.4M ($623M), 12%, "after the club missed out on the Champions League." Missing out on the competition has cost the club 39% of its year-on-year revenue, to £22M ($34M), while matchday revenue is down 31% to £26M ($41M). In all, ManU has posted an £11.4M ($18M) 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 operating profits for the season are up from £90M ($142M) to £95M to between £105M ($165M) to £110M ($173M) (INDEPENDENT, 5/14). City Index Chief Market Strategist Joshua Raymond said, "What we have seen from these numbers is growing confidence in the recovery of the Man United team’s performance over the coming year, 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. ... One word of note is the growth in gross debt, which rose to £395.4 million ($623M) in the quarter from £351.7 million ($555M) thanks to negative currency flows and this is something that needs to be guarded against, especially if the U.S. Federal Reserve hike rates before the Bank of England" (SBD GLOBAL). The BBC reported ManU "blamed fewer broadcast and home games in the quarter, as well as the team's absence from the Uefa Champions League, for the decline." Exec Vice Chair Ed Woodward said, "As we look forward to next season, on the playing side we expect to be challenging for trophies in all competitions and on the commercial side we are excited by the numerous opportunities for further growth, including the first year of our ten-year partnership with adidas" (BBC, 5/14).
SPENDING SPREE: REUTERS' Neil Maidment wrote ManU "hinted on Thursday at another spending spree this summer after promising to have a squad capable of competing with the best teams in Europe next season." The club spent around £150M last year "after slumping to a shock seventh place" in '13-14 when it failed to qualify for the lucrative European Champions League for the first time in 19 years. ManU has "effectively secured a return to the elite European competition, boosting fans' spirits and the club's finances." Woodward said that the club was "pleased with Van Gaal's performance" but that it would "strengthen the squad to challenge for trophies next season." Woodward: "We expect to be active again during the (transfer) window." The club "already agreed to sign Dutch forward Memphis Depay from PSV Eindhoven" for around €30M (£21.6M) (REUTERS, 5/14). In London, Mike Keegan wrote Woodward said that "eight or nine" of 30 first-team players will be out of contract at the end of next season. Woodward said, "That's a fairly normal ratio." He added that "talks were currently ongoing with those players out of contract this summer whom the club want to keep." Woodward also dismissed claims ManU, which will retake control of the club Megastore following the expiration of its current deal with Nike, was "looking at selling the naming rights to Old Trafford." Woodward: "We had no intention of doing a process to sell naming rights. We are not sitting here with an offer we are ignoring" (DAILY MAIL, 5/14). Also in London, Ben Rumsby wrote ManU Managing Dir Richard Arnold declared the Glazers' "10 years in charge at Old Trafford to have been a success," hailing the "long-term approach" they had taken to running the Premier League giants. The Manchester United Supporters Trust "marked the anniversary of the Glazers’ debt-leveraged takeover of the club on Tuesday by releasing a damning statement," accusing them of extracting more than £1B ($1.5B) during that time and of failing to invest in the squad. Arnold tackled their complaint, saying, "They would have their view. I wouldn’t agree with it" (TELEGRAPH, 5/14).
