Manchester United earnings to dip on Champions League absence
LONDON: Manchester United (MANU.N) reported a 30 percent rise in fourth-quarter revenue on Monday but forecast lower earnings for the current year as the club will miss out on Champions League soccer after finishing fifth in the English Premier League last season.
United said it expected 170-180 million pounds in adjusted core earnings this year after reporting a record figure of 192 million for the year ended June 30.
It expects 530-540 million pounds in revenue this year, up from 515 million due to new television deals for Premier League clubs.
United's fifth place finish in the Premier League last season meant the team failed to qualify for a place in the lucrative Champions League in 2016-17 and will play in the lower profile Europa League instead.
The club has said that its absence from the Champions League would reduce its revenue in 2016-17 by more than 30 million pounds.
United responded by replacing team manager Louis van Gaal with Jose Mourinho who has signed France midfielder Paul Pogba for a reported fee of 89 million pounds ($118 million) and hired other big name players including Swedish striker Zlatan Ibrahimovic.
United said it recorded 15.1 million pounds in exceptional charges which included 8.4 million pounds on former manager Louis van Gaal's payout.
The club's revenue for the fourth quarter rose to 134.5 million pounds ($178.43 million) from 105.8 million a year earlier. Adjusted core earnings jumped 53 percent to 49.3 million pounds.
Controlled by the American Glazer family, United have won the English league title a record 20 times and last season won the Football Association Challenge Cup for the 12th time.