No Champions will hit the ‘Red Devils’ in pocket
Chinese siblings strike Reading deal
MANCHESTER United stand to lose around £50-million (R846-million) in revenues if they fail to beat Ajax in the Europa League final next Wednesday.
Victory in Stockholm would secure qualification for the Champions League but the cost of missing out for a second successive season was laid bare yesterday and underlined the pressure on Jose Mourinho to deliver the 25th trophy of his managerial career.
Paul Pogba is likely to sit out United’s final two Premier League games, away to Southampton last night and at home to Crystal Palace on Sunday, as Mourinho gives the midfielder time to grieve the death of his father, Fassou Antoine, last Friday after a long-term illness.
Pogba, who also missed Sunday’s 2-1 defeat at Spurs, has been in France this week in order to attend the funeral but he will feature against Ajax and the importance of United raising their game after a run of one win in six matches was spelt out in stark financial terms yesterday when the club released their third-quarter accounts.
United have revised their revenue forecast for this season and now expect to post an increased turnover for 2016-17 of between £560-million and £570-million, up £30-million from September’s estimates, thanks largely to their success in the Europa League.
But while United expect to generate revenues of up to £20-million from the Europa League, mainly because of an extra £8-million windfall on the back of their Premier League rivals’ failures in the competition, that is 60% less than the £50-million the club anticipate they would earn from the Champions League.
In addition, United would also suffer a 30% reduction in the value of their 10-year kit deal with Adidas – the equivalent of £21-million – if they fail to qualify for the Champions League for the second season running.
That drop in income would be spread over the remaining eight years of the contract. As such, United would lose around £4-million this year, accounting for the first two years of the Adidas contract, with a £2.1-million drop for every year after that.
If they do not qualify for the Champions League, though, United’s revenues would be partially offset by a reduction in the salaries and bonuses the club would have to pay players.
“Clearly the Champions League has greater revenues but we have designed an offset within salary costs and our bonus structure which attempts to dampen the impact between being in the Champions League or Europa League,” Cliff Baty, United’s CFO told investors yesterday.
United’s earnings in the Europa League have also been swollen by between £7-million and £8-million as a consequence of Tottenham, Southampton and West Ham’s early exits from the competition giving them a greater share of the market pool. With Mourinho likely to start Sergio Romero and Joel Pereira in United’s final two league games, and Romero in the Europa League final, David De Gea may have played his last game for the club. Real Madrid are keen to sign the goalkeeper. CHINESE investors who failed in their bid to buy Hull City last year have succeeded in taking over Reading, who are one win away from the Premier League.
Brother and sister Dai Yongge and Dai Xiuli snapped up 75% of the Championship club with the previous Thai owners retaining a 25% stake.
The Premier League, who give their opinion on takeovers of clubs who could gain promotion, have been reported to be “cautious” about the Chinese siblings.
However, the English Football League, who oversee the Championship, League One and League Two, said they would not block the deal.
Reading, managed by former Netherlands and Manchester United defender Jaap Stam, on Tuesday saw off Fulham to reach the playoff final.
They later yesterday learned if their opponents in the final – the winner of which is promoted to the Premier League – were Sheffield Wednesday or Huddersfield Town.
“The EFL can confirm that they have no objections to the change of control application made by Reading Football Club,” a statement said.
“Following a full review of the transaction, the EFL has insisted upon – and the club/new owners have agreed to – a number of additional reporting requirements including enhanced financial monitoring, so as to ensure that their performance is consistent with the application we have considered.”
The brother-and-sister act unsuccessfully tried to purchase now-relegated Premier League side Hull, with the deal falling through amid speculation they had not met the league’s fit and proper person’s requirements.
Reading chief executive Nigel Howe said the Chinese had ambitious plans, including “investment which will benefit not only the first-team squad, but which will also help to improve the club’s training facilities [and] continue to support its category-one academy programme”.
The siblings are the latest Chinese investors to take control of a Championship club but the only ones with a chance of gaining immediate reward to the Premier League. — AFP