Manchester United´s financial outlook

Risk for commercial income | Bloomberg

Repucom’s global football expert, Andrew Walsh provides his opinion on the financial implications facing Manchester United if they do not qualify for next season’s UEFA Champions League. As featured in Bloomberg’s analysis on how the club, one of the world’s top sports brands, may face a double challenge to its financial outlook: poor results on the field and rising wage pressure off it.

Walsh explains that although teams competing in Europe’s top club competition do on average generate higher revenues through prize money, performance bonuses and the associated sponsorship value given by the Champions League’s global exposure, due to Manchester United’s standing in world football as a global brand, failing to qualify for next season’s competition would be “by no means catastrophic”. Indeed, “due to its high brand value as one of the world’s most followed clubs, merchandise, licensing and revenues via digital formats for example would not be affected”.

Source: Bloomberg, February 27,2014, by Ben Priechenfried