United is trying to fill the gap left by Alex Ferguson (pictured), who retired after 26 years as the most successful coach in English history
Manchester United, the record 20-time English soccer champion, is seen heading for its first annual loss since a 2012 U.S. initial public offering after the team failed to reach the top European club competition.
Four analysts estimate the club will lose 11 million pounds (USD17 million) in the year ending June 30. The team had a loss of 47.5 million pounds in fiscal 2010, according to Bloomberg data.
Manchester United had a fiscal second-quarter loss of 55,000 pounds in the three months ended Dec. 31, compared to net income of 19 million pounds in the same period in 2013, according to a BusinessWire statement. Revenue declined 14 percent to 105.8 million pounds and income from televised matches declined 39 percent without Champions League exposure.
United is trying to fill the gap left by Alex Ferguson, who retired after 26 years as the most successful coach in English history with 38 trophies. The team has built up its commercial income and will benefit from the Premier League’s record broadcast contrast but hasn’t been able to recreate his success on the field, finishing seventh last season.
“Notwithstanding no European football this season, our revenues and Ebitda remain strong and demonstrate the underlying strength of our business model,” Executive Vice Chairman Ed Woodward said in the statement. “On the pitch, the team is well positioned to challenge for a top four finish in the Premier League.”
The shares have risen 8.4 percent this year. It’s had losses in three of the last eight quarters.
United last season fired Ferguson’s replacement, David Moyes after its worst start since the beginning of the Premier League. Dutchman Louis van Gaal took over this season and has guided the team to third place after 25 games.
The club, controlled by the Glazer family, will benefit from the league’s new U.K. television contracts with Sky Plc and BT Group Plc. The broadcasters will pay a combined 5.14 billion pounds for the 2017-19 seasons, an increase from the 3 billion pounds of the current deal.
The team estimates revenue of 385 million pounds to 395 million pounds for the fiscal year, with adjusted earnings before interest, taxes, depreciation and amortization of 90 million pounds to 95 million pounds. Bloomberg
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