Moyes reign costs United $90M, but revenue rising
MANCHESTER, England — The wall of fame of Manchester United managers still informs Old Trafford visitors that a “new chapter has begun” under David Moyes. In reality, it was a short, painful chapter in United history that will cost around $90 million, the club has disclosed.
Although the museum display hasn’t been updated, it’s been more than four months since Moyes was fired before completing a season as Alex Ferguson’s successor. The task of restoring the former glories is with Louis van Gaal, and the club told investors on Wednesday that the former Netherlands manager needs to deliver a top-three finish in the English Premier League.
United executive vice chairman Ed Woodward is certain Van Gaal has “already begun to reinvigorate the club.”
“The 2013-14 season was a very challenging and disappointing one,” Woodward said. “But under Louis there is a real feeling at the training ground that we are at the start of something special. We are very excited about the future.”
After 26 years under Ferguson, there have been two new chapters in a year. Still searching for his first win after four matches in charge, this manager has to get it right. In its annual financial results, United said it cost £5.2 million ($8.4 million) in compensation to fire Moyes and some of his coaching staff after just 10 months in charge.
United, which is owned by the Glazer family and listed on the New York Stock Exchange, remains a commercial juggernaut, with 2013-14 revenue up 19 percent to a club record £433.2 million. But the failure to qualify for Europe under Moyes by finishing seventh has led United to forecast revenue in 2014-15 to drop by 10 percent — around $80 million — to as low as £385 million.
Underlying profit is also forecast to drop from £130.1 million to between £90 to £95 million, although the debt which angered fans after the 2005 Glazers’ takeover has fallen to £341.8 million.
But the 20-time English champions have been spending heavily in a bid to arrest the decline, reinvesting the sponsorship revenue, which soared by 50 percent to £135.8 million in the year to June 30. The accounts show £78.9 million spent on players, including the signing of Juan Mata in January for £37.1 million. The wage bill rose by almost 20 percent to £214.8 million.
Since the end of the financial
year, United has spent more than $200 million, including a British record fee of £59.7 million to sign Argentina midfielder Angel Di Maria from Real Madrid in an attempt to improve United’s position.
“Our budgets assume a third-placed finish,” Woodward said.
Next year’s accounts will reflect the start of the sevenyear $559 million shirt sponsorship with Chevrolet, but an Adidas kit deal, worth potentially £75 million a year, doesn’t start until 2015-16.