Manchester United pay price for Champions League flop

Manchester United’s revenue and profits have taken a hit from the club’s non-participation in the UEFA Champions League.

Despite that, however, executive vice-chairman Ed Woodward said the club remained on track to deliver record revenues for the coming year.

The Old Trafford football club saw turnover for its first fiscal quarter ended September, 2016, hit £120.2m, down 2.8% on Q1 in 2015.

Adjusted EBITDA tumbled 25% from £41.6m in 2016 to £31.2m.

Wages for the quarter were £62.3m, an increase of £3.4m, with the club signing star names Zlatan Ibrhamovic, Eric Bailly, Henrikh Mkhitaryan and Paul Pogba.

Sponsorship revenue for the quarter was £44.4m, down £1.9m or 4.1% on the prior year, as a result of the team playing fewer tour matches.

However, there was an increase of £5.1m to £27.4m in merchandising as its Adidas agreement kicked in.

Broadcasting revenue for the quarter was £29.1m, an increase of £1.5m, or 5.4% over the prior quarter due to the start of the FAPL broadcasting rights agreement, partially offset by non-participation in the Champions League and playing one fewer Premier League game.

Net debt at September 30, 2016, stood at £337.7m, an increase of £51.5m over the year.

Woodward said: “While our financial results for this quarter reflect the impact of our non-participation in the Champions League, we are pleased that we remain on track to deliver record revenues of the coming year.

“During the quarter we added a number of top quality players to our squad which once again demonstrates our determination to challenge for trophies.”