Figures have revealed that first-quarter revenue fell a staggering 9.9% for Manchester United in comparison to 12 months ago.
Failure to qualify for the Champions League for the first time in 1995 meant extensive reductions were made in both broadcasting and matchday revenue, down 13% and 21.8% respectively. Money made directly from commercial activity was also down 5.2%, a key aspect of Ed Woodward’s role at Old Trafford.
Failure to qualify for the Champions League for the first time in 1995 meant extensive reductions were made in both broadcasting and matchday revenue.
While summer appointment Louis van Gaal warned that commercial activity could damage the side’s momentum and form, Woodward was adamant that he had achieved the correct balance for the 20-time Premier League winners. Van Gaal was quoted soon into his reign at Manchester United manager, saying:
“We have to prepare for the season and when you have commercial activities and dreadful distances, having to fly a lot and the jet lag, it is not very positive for a good preparation.
“The tour was already arranged and I shall adapt and United will do everything to apply to my rules.
“I hope that [next summer’s tour will be shorter], but they have already said that to me and I am very confident that it shall be.”
The club’s overall income – for the first three months of the financial year – has fallen to £88.7 million – down a substantial £9.8 million, but Woodward has acclaimed a profit of £8.9 million.
The lack of European football this season has not prevented Woodward from securing a world record 10-year kit deal with Adidas worth £750 million.
Nevertheless, the lack of European football this season has not prevented Woodward from securing one of the season’s top signings – a world record 10-year kit deal with Adidas worth £750 million.
To top the imposing kit deal, replacing current manufacturers Nike, chief executive Woodward has predicted further opportunities for growth and ability as the season progresses. He said:
"While we recognize that the 2014/15 fiscal year financial results will reflect our absence from the Champions League, we signed the largest kit sponsorship deal in the history of sport in the first quarter.
"With that concluded, we are excited to focus our efforts on the meaningful growth opportunities in sponsorship, digital media and retail and merchandising.”