Non-participation in the UEFA Champions League has seen Manchester United’s total revenues drop 2.8% to £120.2m for the 2017 fiscal first quarter ending 30 September 2016.

However, the impact of non-participation was partially offset by the significant increase in the money received from the new Premier League broadcasting rights agreement which came in to play this season. 

Despite this, United showed strong commercial growth with revenues of £74.3m, an increase of £3.1 million, or 4.4%, over the prior year quarter.

Sponsorship revenue for the quarter saw a decrease of £1.9m, to £44.4m, due to playing fewer Tour matches.

Retail, Merchandising, Apparel & Product Licensing revenue for the quarter was £27.4m, an increase of £5.1m, over the prior year quarter, due to the commencement of the adidas agreement and bringing in-house of several businesses, both only commencing part way through the prior year quarter (on 1 August 2015).

Executive Vice Chairman, Ed Woodward, commented: “While our financial results for this quarter reflect the impact of our non-participation in the UEFA Champions League, we are pleased that we remain on track to deliver record revenues for 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.”

Matchday revenue for the quarter was £16.8m, a decrease of £8.0m, or 32.3% over the prior year quarter, primarily due to playing three fewer home games across all competitions.

The club’s Net Debt as of 30 September 2016 was £337.7m, an increase of £51.5m over the year primarily due to the impact of foreign exchange rate movements on USD denominated debt and the decrease in overall cash and cash equivalents (including the effects of exchange rate changes) which decreased by £64.9m in the quarter.