Tuesday, September 18, 2012

United able to compete despite revenue drop

Scaremongering headlines this week that Manchester United have recorded a drop in revenue should be read while taking the club’s Champions League exploits into account.

United, who floated 10% of the club on the New York Stock Exchange this summer, revealed a fall in revenue between 3% and 5% - an estimated £320m compared to a slight increase of £334m a year ago.

Although the club has seen a drop in revenue the news is hardly worth headlines suggesting the club is financially heading in the wrong direction. For the fall in revenue rests on one factor: Champions League progress.

United, who are priced for Europe at great odds at Bet Victor, are the victims of their own success when they failed to qualify for the knock-out stages of the 2011/12 Champions League, just one season after they reached the final of Europe’s top club competition.

The income generated from prize money and broadcasting rights in that run two years ago accounts for the £14m drop a year later, where Sir Alex Ferguson’s side bombed out at the group stage.

United have worked hard to eradicate the failures of last season and Ferguson has boosted his squad with new signings Shinji Kagawa and Robin van Persie. He is aware that he works under a network of investors and any big-money signings will be scrutinised by a board determined to make money from the club.

The Scot has therefore done a great job balancing the books at Old Trafford and now has a squad capable to challenging once more for the European Cup. Although the wage bill has gone up 9.9% United have managed to offset this increase with new commercial agreements such as the DHL training kit sponsorship, meaning the club is always one step ahead of the game.

United fans from within the Bet Victor community should not be concerned about a meagre drop in revenue and instead will be optimistic their side can sustain itself in the future while continuing to compete for major trophies.

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