Leaders
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Man Utd revenues warning

Wed 31st Mar 2010 | Money & Finance

It’s reported that financial advisers of Manchester United expect the club to miss out on at least £24m in cumulative match-day revenues over the next two years according to the Guardian newspaper.

JP Morgan's analysis of the club's financial position, set out in a research document released last Friday, shows United's 2009 match-day income of £109m to be a high-water mark. Even in its supposed "upside scenario", in which the club progresses to the Champions League quarter-final or beyond in both years, it anticipates a drop to £98m this season and to £96m next. And the recovery from that base will be weak: to £101m the following year.

Manchester United's own budgets are said to predict an even bigger two-year fall of £29m, with much of the collapse attributed to the difficulties in selling executive boxes. The document states: "Most of the impact from the economic slowdown was felt in the executive hospitality business, which we would argue is a highly discretionary expense."

Yet JP Morgan concedes that even those estimates could prove optimistic at a time when the Manchester United Supporters Trust has been increasing its attack on the Glazer family's ownership of the club. It adds: "We note that the coming two quarters will be important to gauge demand for 2010-11 season tickets and executive hospitality seating in light of the negative MUST PR campaign." This is one of the "external risks" JP Morgan cites, adding: "It would place significant strain on the company's limited free cash-flow generation."

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

West Ham United launch shirt auction in aid of Mexican earthquake relief

Fri 22nd Sep 2017 | Money & Finance

West Ham United will auction all match-worn shirts from this weekend’s London derby against Tottenham Hotspur , with all proceeds going to the victims’ families and survivors of this...

Stoke City success bringing benefits to region

Fri 22nd Sep 2017 | Money & Finance

Premier League football brought £130m to Stoke region and employed 2,200 people in one season, an EY study finds. The chance to play in the Premier League not only brings joy to fans of a club...

Manchester United Post Record Revenue Of 581m

Thu 21st Sep 2017 | Money & Finance

Manchester United has followed a successful year on the pitch with a successful year in business posting record revenues for the year ending 30 th June 2017. In a season which saw the club, under the...

30 September: the other deadline day

Mon 18th Sep 2017 | Money & Finance

As of 30 September 2017, all football clubs, sports agencies and their intermediaries will fall within the remit of the Criminal Finances Act. Through this Act, criminal sanctions can be imposed on...