Man U set to announce reduced profits following early CL elimination last season
London: English Premier League club Manchester United is likely to announce a drop in their profits on Thursday due to their failure to proceed beyond the group stage in the Champion League last season.
According to the Telegraph, the club will announce the full-year results tomorrow for the year ending June 30, 2012.
In unaudited estimates presented to potential investors last month, the club predicted a fall in revenue of between three per cent and five per cent, which is an estimated at 315 million to 320 million pounds compared to 334 million pounds for the year ending June 2011.
It is also expected to show that wages have risen by around ten cent compared to 2011, but that commercial deals, such as with training kit partner DHL, have also risen by as much as 13 per cent to 117 million pounds, which has softened the blow of the fall in broadcast income and prize money from European football.
The impact of being knocked out of the FA Cup in the fourth round also has had a knock-on effect on match day income.
The absence of Champions League income from the knockout stages cost United £14m in income from UEFA compared to the previous season.
There also a ten million pound fall in match day income due to four fewer home matches taking place.