The reason why Manchester United FC have to improve – on and off the pitch

Football finance experts warned Manchester United that their most valuable club status in the world would not be sustainable if they continued to lag behind their main rivals on the pitch.

In May, Ed Woodward, vice president of the club, told shareholders that United could make money regardless of the results.

"The gaming performance does not really have a significant impact on what we can do on the commercial side of the business," he said shortly after a season during which United finished 19 points behind Manchester City in the league, losing the FA Cup final at Chelsea, leaving the Carabao Cup by Bristol City and falling in the first qualifying round of the Champions League in Seville.

Eight months later, United still generates huge revenues, but it is becoming increasingly clear that they are no longer the favorites in this regard, as years of relative failure in the Premier League and Champions League start to hit the mark.

Thursday, Deloitte released its 22nd report on the Football Money League, which ranks the world's biggest clubs based on their earnings in broadcasting, business transactions and return-to-home revenue last season.

United, who has been in first place for two years, was eliminated by Real Madrid and slipped to third behind Barcelona.

With its third consecutive win in the Champions League, Real achieved £ 665.2 million, £ 85.5 million more than a year ago and £ 75.2 million more than £ 590 million from United .

All UK clubs were slightly affected by the 3% decline in the value of the pound sterling against the euro, but the real reasons for the fall of United were the results of the football and the commercial income in full booming Spanish giants.

Kieran Maguire, professor of football finance at the University of Liverpool, said: "Manchester United is paying the price due to the fact that it has not progressed far in the Champions League last season.

Real Madrid won £ 77m, Barcelona 50m but United only € 35m after being eliminated in the last 16 games and having a lower gain coefficient for qualifying thanks to a win in the Europa League the previous season rather than in the top four of the Premier League.

"United's revenues are expected to rebound in 2018-2019 due to the sponsorship agreement with Kohler and a change in the way that UEFA distributes money to clubs, which takes into account the European progress of a club over 10 years.

"But despite Ed Woodward's claim that the club does not need to win matches to generate revenue, United's slick sales department may have a hard time keeping up with the pace from Real, Barca and Bayern Munich, who regularly win. "

Dr. Rob Wilson, who runs the Sports Business Management Course at Sheffield Hallam University, agrees with Maguire and believes that United can not continue to rely on the luster of the time Sir Alex Ferguson, who won 13 Premier League titles in 21 years and two in the Champions League. crowns.

The last of these came in 2008, although they were finalists in Barcelona in 2009 and 2011. Since then, however, United's record in the Champions League is mediocre, failing to break out of the group stage twice, losing in the round of 16. twice and completely miss European football in 2014-15.

On the positive side, they won the Europa League under Jose Mourinho in 2017.

"All the evidence suggests that there is an inextricable link between financial and athletic performance," Wilson said.

"United has increased their revenues, but I'm sure they would have made progress if they had been more successful on the field, and in their defense they tore up the rules book when they signed with Adidas and were pioneering sponsorships.

"In this context, they have signed long agreements and can not renegotiate for the moment, which means that other clubs are pursuing their goals and catching them.

"If they do better on the field, I expect renegotiations to break records and to find their place at the top of the table."

But Wilson cites a relatively recent example close to what can happen if a once-prosperous club endures a long period of rebuilding.

"The comparison with Liverpool is very real, United could have expected a moderate retreat after Ferguson, but if it continues for a longer time, we'll see exactly that," he said.

"The Premier League is very competitive – at least at the top – which means that the clubs can overtake the others quickly, and a good run in the Champions League, like last season in Liverpool, adds £ 70m to the pot."

Liverpool, who is now leading the Premier League and looking for their first English title since 1990, increased their turnover by £ 90m last year and climbed two places in the Deloitte rankings.

It is understood that United is relaxed as to its position in the various "rich lists" produced these days, but it is also true that they were very proud to have been named "the most precious "by Forbes business magazine last summer.