Record Revenues? So What!

[lon ball2]

Record revenue
finished 32 points behind City
amount spent net to close the gap? -£2 million
pay rise to ed wooward for overseeing the decline? 60% - more than £2 million

 

[clarkydaz]

You're naive if you think not being in the Champions League doesn't negatively affect our other revenue streams much more than that 30mil.

and players we want to sign

 

[lon ball2]

If Apple did that revenue would fall and investors would demand a change. Our revenue keeps rising regardless of results. From a purely business perspective even lower spending might be the wise choice.

genuinely think its a new strategy from the Glazers - the squad needs at least £350 million to make it competitive again, and that's greater than the rewards. they don't have the stomach

 

[Sarni]

It's not really the lack of investment that prevents us from being successful, it's constantly investing in the wrong people.

 

[Amerifan]

I've tried to think of this from a United perspective as well.

Is the general consensus to bide your time during the peak of other high profile teams in anticipation of a steep falloff? All the while 'timing your run' so to speak (heavy bursts of investment at crucial times), in order to compete for a period of time maximising investment value.

I'm genuinely intrigued by this concept.

Very interesting notion. I think given where we are now, it would take a £500 million net one time spend to rival City and Liverpool and challenge in the CL. Plus an ongoing commitment of £100 million net spend or so each season thereafter.

Maybe the board is thinking of just minting money from the United cash machine until things change around us. If so, it could be a while. That would be depressing.

 

[El-Manos]

We're not going to get a DoF, just look at Woodwards comments to investors today.

I know, unfortunately.

 

[arthurka]

Record revenues... So what's the problem?

No problems business is booming.

 

[dev1l]

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[romufc]

Record revenues... So what's the problem?

The Glazer's wouldnt see it an issue if revenues continue to do well and the football results are sheet.

 

[finneh]

The Glazer's wouldnt see it an issue if revenues continue to do well and the football results are sheet.

The problem is that isn't what the figures show. Just as a mini highlights reel:

• Commercial revenue down 0.3% on the year
• Wages up 12.3% on the year
• Increase in turnover solely due to 18.1% increase in broadcasting revenue (which is also received by our competitors)

Essentially the area of the business that has set us apart from our rivals is flat, whilst the costs to compete have increased over 12%. The area of the business that is booming is a) not one we'll be benefiting from this year due to crap performances; and b) one that our rivals all are benefiting from.

The "good" news is that we have a £300m stockpile of cash in the bank, which has increased by £65m over the last year and with a modest Summer is likely to increase further.

 

[AneRu]

It's not really the lack of investment that prevents us from being successful, it's constantly investing in the wrong people.

True and its gobsmacking to see the man that's presided over a six year sustained declined that featured spending £880m on transfer fees and 3 failed managerial appointments emerge unscathed. Not only is he unscathed but he is being given the latitude to resist changes that should transform a key are in which he has been found wanting - recruitment of managers and players. Utterly shocking management.

 

[bond19821982]

It's not really the lack of investment that prevents us from being successful, it's constantly investing in the wrong people.

Precisely. Actually our signings would have worked okay if we had the right people in.

 

[Giggsyking]

Look. I really dont think the glazer would penny pinch on hiring the best in the business coaching wise.

We just havent found the one yet.

Have some patience. The day they stop spending hundreds of millions is the day I'd sharpen my fork.

Things hasnt been going good but i dont buy they're not doing anything to rectify it. They tried moyes, lvg, mourinho, and now they tried ole. They're trying in my eyes. I dont fault the intention to get back to the top so far. Things could have been better but alas, we havent won the luck of the draw. Liverpool did with klopp the rest is history.

If i were to point a finger it's on the bad attitude and culture from our player since saf gone. They failed to do the basics, even refused to follow the managers instructions at times. I understand it needs to be done with moyes, but it seems that they've gone over their head thinking they could simply get a manager sacked and buy another contract extension everytime.

It's a tough time, a good ceo might help but it's not as simple as that.

Spending 60m per summer is not trying, is leeching.

 

[GlastonSpur]

Apparently CL football is only worth £20 to £30 million to the bottom line. That explains a lot...

This is definitely not true. Spurs earned around £90m from their run to the final - and I don't think that includes gate receipts or increased attraction to sponsors.

 

[Pierluigi Casiraghi]

We should be able to afford to activate the additional one year options on Mata and Jones' contracts now

 

[Buster15]

Record revenues... So what's the problem?

A football club earning over 1.7 million pounds a day. Sounds fantastic yes.
But, it is important to note that not only will revenues fall this year but we are falling behind our rivals.
And that is going to reduce our ability to complete in the global football markets.

 

[Amerifan]

This is definitely not true. Spurs earned around £90m from their run to the final - and I don't think that includes gate receipts or increased attraction to sponsors.

I think you are referring to revenues. United forecast profits to drop £20 to 30 million this fiscal year due to no CL football.

 

[Beans]

So we can continue to have the second most expensive squad in the world. Maybe we'll actually figure out how to buy good players.

 

[christinaa]

No matter who we have as manager, if he isn't backed by buying the players he needs/wants, we are going to remain like Liverpool for 30 years.

 

[Thaila-X]

Ed Woodward is a financial genius NOT a football one, he's pulling in record revenues at a time when the product on the pitch is the worst it's been in years.

If only the Glazers could see Ed needs a footballing genius to work alongside him to manage what should be the most important aspect of this club. Sick of seeing us ran like a business, we won't win anything until that culture changes in the board room and we get an animal in there that doesn't care how many commercial partners we have, just what is happening on the pitch. I don't think there is a single fan that really cares what our revenues actually are, only how it's being invested into the team.

 

[romufc]

The problem is that isn't what the figures show. Just as a mini highlights reel:

• Commercial revenue down 0.3% on the year
• Wages up 12.3% on the year
• Increase in turnover solely due to 18.1% increase in broadcasting revenue (which is also received by our competitors)

Essentially the area of the business that has set us apart from our rivals is flat, whilst the costs to compete have increased over 12%. The area of the business that is booming is a) not one we'll be benefiting from this year due to crap performances; and b) one that our rivals all are benefiting from.

The "good" news is that we have a £300m stockpile of cash in the bank, which has increased by £65m over the last year and with a modest Summer is likely to increase further.

I know what you are saying, these figures in relative terms are poor because other teams around us are doing better due to the broadcasting revenues.

However; Ed will probably present to the board showing wage savings for next year after sales of players.

The figures are good but they don't paint the correct picture.

 

[Andycoleno9]

Apparently CL football is only worth £20 to £30 million to the bottom line. That explains a lot...

When you miss it one year it is around 50 mil hit. But if you keep missing it, hit will be huge. You think that our sponsors will stay without CL? Or at least that we will be in position to demand current money from them? Of course not. We will lose some sponsors and from others we will generate lower amount of money. After two or three years our income could be over 100mil lower than now.

 

[devlinadl]

Worth remembering that this £47-67m drop in revenue is the difference between CL and EL. Arsenal and Chelsea both earned about £35m from the EL last year (plus match day revenue etc). If United are outside the top seven, that could be a further drop of £30-40m. Plus this alleged approx £20m drop in the kit deal if United finish outside CL for two years running...