Manchester United’s return to the Champions League will have a huge positive impact on their already impressive financial situation, City Index’s Chief Market Strategist, Joshua Raymond, has told FootballFanCast.com.
The Red Devils look on course to reach at least the qualification phase for next season’s top European competition, with Liverpool needing to make up six points and 14 goals in two games to overhaul Louis van Gaal’s side.
Such news is undoubtedly positive for the club, who have seemingly only missed one term in the big time in what has been a tricky period following the exit of Sir Alex Ferguson and the disastrous spell under the guidance of David Moyes.
Although financial results show that United have indeed posted a £2.9 loss over the course of the first three months of the year – the same period 12 months ago garnered an £11m profit – Raymond believes that returning to the Champions League puts the giants on track to re-establishing themselves as one of English football’s top forces:
“Manchester United reported Q3 total revenues of £95m, in line with forecasts, but raised their earnings guidance for the full year to between £385m and £395m, a rise of around 15% on prior guidance. The club also rose its EBITDA guidance to between £103m and £110m.” he said.
“What we have seen from these numbers is growing confidence in the recovery of the Man Utd team’s performance over the coming year, with a return to Champions League football all but assured, assuming smooth progression through a qualification stage, likely to help the club increase both match day and broadcast revenues. This, alongside with another strong set of commercial revenues has helped the company to hike its guidance.
“What remains starkly clear is the impact of no Champion’s League football at the club, with match day revenue falling £11.6m and broadcast revenue dropping by £13.9m in the quarter, largely as a result of no European football. Despite this, the board remain confident on their commercial growth and it is admirable that the dramatic loss of form in the team has not had a derogatory impact on the commercial side thus far.”
United are likely, unless they can finish ahead of either Arsenal or Manchester City to end the season in fourth, which will see them entered into a two-legged play off with, potentially, a strong continental side.