This year’s financial report made for some grim reading for the Glazer family, majority shareholders in Manchester United, with an estimated 84 percent drop in net income reported by the club for the 12 months that ended on June 30th.
Net income for United, still one of the world’s wealthiest soccer clubs, was a meager $38 million, down from $220 million for the same period in 2013.
Still, revenue for the year came to $700 million, making for an increase of around 20 percent from 2013.
Ed Woodward, the club’s executive vice chairman, in his second season, is determined to calm the fears of the stockholders, in particular the Glazer family, stating that gains from the club’s commercial and broadcasting businesses, as well as a record-breaking sponsorship deal with sport outfitters Adidas, due to kick in next summer, will go a long way to offset the loss of income from the team’s failure to qualify for the European Champions League.
United has plunged deeply into the transfer market, through their new and highly experienced manager, Louis van Gaal, who has paid out a total of $225 million to sign six new players, among them Argentinian Angel Di Maria, formerly of Real Madrid, and Colombian striker Radamel Falcao, on an expensive loan deal from Monaco.
Woodward said the club is pushing for at least a third-place finish in the Premier League, although the current top clubs in England—Manchester City, Chelsea, Arsenal and Liverpool will offer a considerable challenge.
Woodward noted that United remains a very strong brand in the U.S.