Champions League exit sees Manchester United fall into red

Manchester United is counting the cost of last season’s shock early exit from the Champions League as it today said revenues dropped by 3.3% to £320 million in the year to the end of June.

Lower broadcast revenue because of its elimination in the group stages of the competition led to about £13 million being wiped off TV revenues. At the same time, gate receipts were hit by hosting fewer home games, and the wage bill at the club has risen by about 10% from 2011.

The blow to the bottom line has been softened by greater commercial activity. The club posted a pre-tax loss of £4.7 million for the financial year, down from a profit of £12 million the previous 12 months.

It told the New York Stock Exchange its finances will make a comeback in 2013, predicting revenues in of between £350 million and £360 million. This, the club admitted, presumes it will make it through to the quarter-finals of this season’s Champions League competition and domestic cups.

The US-based Glazer family last month floated on the New York Stock Exchange about 10% of the club they acquired for £790 million in 2005. The shares were priced at $14 but are now about 10% down to around $12.60.