Manchester United set to announce record revenue

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Football News

Manchester United are set to announce record revenues that exceed £420 million for last season, an increase of almost 20 per cent that reflects the Premier League giants' ever-increasing popularity across world football.

However, The Telegraph reports that the Red Devils will also confirm a huge drop in operating profit from 2012/13 with the £146.4 million taken that campaign decreasing to a mere £25 million in 2013/14.

The £120 million shortfall is mainly due to a one-off tax credit, but the 20 per cent increase in operating costs to £373 million due to more money spent on transfer fees and higher player wages will also have had a significant impact.

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The Old Trafford club's debt should be confirmed at £350 million, with the cost of paying that off at a similar level to the profit made last season. But, more worryingly for Manchester United supporters is the fact that this summer's outlay of almost £150 million is not completely included in the latest figures because the majority of their transfer business fell outside of the previous financial year.

According to the Independent, the combined £57 million spent on signing Luke Shaw from Southampton and Ander Herrera from Athletic Bilbao will be included as the deals for the pair were tied-up early in the summer, prior to the year ending 30 June 2014.

Cash splashed

But, that merely scratched the surface of Louis van Gaal's big-spending with the majority of the transfer window expenditure still to be taken into account. So, the £59.7 million British transfer record deal to sign Angel di Maria from Real Madrid and agreements for Marcos Rojo (£16m to Sporting Lisbon), Daley Blind (£14m to Ajax) and Radamel Falcao (£6m loan fee to AS Monaco) will be responsible for a large chunk of this year's revenue as well.

Then there is the loss of earnings from Manchester United's failure to qualify for the Champions League - or in fact any European competition - last season, following their disappointing seventh place finish in the Premier League.

Bobby Charlton on United comeback

Executive vice-chairman Ed Woodward has already indicated that the impact of that would be an additional fall in revenue of around £30 million in the current financial year, though that will also not feature in the latest report.

One thing the annual results will show is the cost of paying off former Red Devils manager David Moyes and his coaching team, after the 51-year-old Scot was sacked just 10 months into his six-year contract at Old Trafford.

On a more positive note, the club's commercial revenue is expected to be up 25 per cent to around £190 million thanks to pre-season tours and higher sponsorship renewals, further complimented by the sale of around five million Manchester United-branded licensed products, including two million replica shirts.

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