Manchester United’s projection of reaching and surpassing £1 billion in revenues by the end of the 2027 financial year remains doubtful following their recent financial figures.
The Red Devils’ billion-pound revenue forecast was deemed highly ambitious, given their recent figures.
The Red Devils announced record revenues of £648.4m for the 2022/2023 season, but the club’s debt remains at £538m.
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United’s wage bill dropped by £52.8m to £331.4m.
Commercial revenues exceeded £300 for the first time, but the club still recorded a £42.1m loss.
Man United returned to the Champions League in Erik ten Hag’s first season as manager, finished third in the table and won the Carabao Cup – the club’s first silverware since 2017.
The departure of Cristiano Ronaldo and other big earners, such as Paul Pogba, likely impacted that figure.
The club also reduces its players’ wages when they are outside the Champions League, which they were not in last term.
Long-term debt remains at £507m, with the cost of serving that sitting at £21.4m last term.
UK’s football finance expert Kieran Maguire has said: “The club is still making losses, but at least they are substantially lower than the £150m in 2021/22.
“The good news is that wages are only 51% of income. The bad news is that other costs, especially player transfer amortization, which is over £50m higher than two seasons ago, is not under such good control.”
The club increased ticket sales and made £900m in Adidas kit deal.
New signings in the summer included Mason Mount, Andre Onana and Rasmus Hojlund in modest recruitment compared to recent seasons.
There is still uncertainty over the club’s ownership as Negotiations are ongoing between United and Sir Jim Ratcliffe, who wants to purchase a 25% stake in the club for around £1.3billion.
And now United are weighing up whether to accept Ratcliffe’s bid to buy a 25 per cent stake, too, after Qatari businessman Sheikh Jassim pulled out of a deal that would have seen him become the outright owner of the club.
An enhanced broadcast rights package due to the new format of the Champions League kicking off next season and the introduction of the FIFA Club World Cup would see the Old Trafford club and their counterparts experience increased commercial and broadcast revenue and matchday income.
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However, United are struggling since the start of the 2023/24 season and are eighth on the Premier League table with 15 points from nine matches.
Ten Hag’s men have won five and lost four league matches this campaign and risk the chances of playing in the Champions League next season considering the hot form of Tottenham, Liverpool, Arsenal and title holders Manchester City.
United might lose out on the increased broadcast revenue if they fail to finish in the top four to play in the Champions League, which could dent their £ 1 billion revenue projection for 2027.
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